Save Our Homes Differential Defined

The SOHD deduction is an acronym for Save-Our-Homes-Differential.

In 1992, the voters of this state passed Amendment 10 to the State Constitution that provided for limiting increases in homestead property valuations for ad valorem tax purposes. The ballot title was “Homestead Valuation Limitation”, but the grassroots initiative was known as “Save-Our-Homes”.

All persons entitled to a homestead exemption under Section 6 of Article 7 of the Florida Constitution shall have their homesteaded property assessed at just value as of January 1 of the year following the effective date of this amendment. The assessed value shall change only as follows, whichever is lower:

      1)      3% of the assessment for the prior year.
      2)      The percentage change in the consumer price index.

Of course this limitation does not include any changes, additions, reductions or improvements to the homesteaded property. The limitation addressed those value increases attributable to supply and demand, increased replacement cost, inflation, etc.

The county property appraiser must still assess your homesteaded property based on its market or just value. Therefore, since all increases except those considered to be new construction or improvements to the property are limited to no more than 3%, a differential is created. The value limited by this constitutional amendment is labeled on our system as “assessed value”.

However, once the homesteaded property sells, the limitation is removed and the assessed value is automatically adjusted up to the market or just value. The new owner can file for homestead exemption and be eligible for the Save-Our-Homes limitation in future years.