Homestead Exemption Fraud

Non-compliance with Homestead eligibility rules can occur in a variety of ways - almost all because an exempt property owner failed to notify the Property Appraiser of a change in the status or condition of the owner or the use of the property.

196.011(9)(a) ...It is the duty of the owner of any property granted an exemption, who is not required to file an annual application or statement, to notify the property appraiser promptly whenever the use of the property or the status or condition of the owner changes so as to change the exempt status of the property...

Those changes may include:

life changing events such as marriage, divorce, or the death of the person claiming homestead
- Only one homestead is allowed per family unit
- Divorce creates tenancy in common – 50% interest each and only the resident former spouse can benefit from the exemption. Any Save Our Homes benefit is reduced by half.
- Exemptions are not inheritable or transferable except to qualified surviving spouses under specific circumstances
rental of all or a portion of the homesteaded property
use of all or a portion of the property for a commercial purpose
permanently moving from the homestead property
claiming or receiving a residency-based property tax benefit in another state or jurisdiction.
- What do you mean by claiming or receiving in another jurisdiction? Jurisdiction means States, the District of Columbia, Puerto Rico, the US Virgin Islands and Guam. All but a few jurisdictions offer some form of property tax relief for permanent residents although not all those benefits are named Homestead. The key words are residency-based. Under Chapter 196.031(6), Florida Statutes, a person claiming or receiving a residency-based property tax benefit in another jurisdiction is not eligible for the Florida Homestead Exemption.
Depending on the jurisdiction, the government agency administering property tax benefits can be the territory, the state, the county, the municipality, the township, or the borough. In some cases, such as New York, (STAR program), the state administers the primary exemption, and the local jurisdictions administer personal exemptions such as veterans or disability benefits. If you own property in another jurisdiction look at your tax bill! If you see a credit and you’re not sure what it’s for call that jurisdiction to verify that it is not residency-based.

The State of Florida is generous in granting qualified permanent residents the privilege of significant property tax savings through the Homestead exemption, various personal exemptions, and the Save Our Homes capping of increases in assessed value. However, when that privilege is abused, the State is equally punitive.

If the violation of the privilege of eligibility for a homestead exemption is for the current tax year the exemption will be denied, value sheltered from taxation by the Save Our Homes Cap will be reset to full market value, and a formal notice of denial will be mailed to the property owner on July 1. Current year denials may be appealed to the Value Adjustment Board.

If the violation occurred in a prior tax year, (pursuant to Chapter 196.161(1)(b), Florida Statutes), the property appraiser must process a homestead tax lien against the property to recover the improperly exempted taxes, plus a penalty of 50 percent of the unpaid taxes for each year and 15 percent interest per annum, for up to 10 years. Should the person who improperly benefited from a homestead exemption no longer own the property on which the violation occurred, the property appraiser will process the lien against any other property owned by that person in the State of Florida. Challenges to a homestead tax lien must be filed in Circuit Court.

Whether the loss of the Homestead or other benefit is because of a denial or a lien, upon correction of the violation a property owner may apply for a new exemption for the subsequent tax year.

Help us prevent fraud. If you know of or suspect Homestead Exemption fraud let us know about it. Contact us via our confidential form or call us at 941-861-8200.

But before you call or submit a tip be aware that –

There is no requirement that a person claiming an exemption reside in Florida for a minimum number of days or months – so long as they continue to maintain their eligibility.

There is no requirement that a person claiming an exemption cannot own another home in Florida or another state – so long as they are not receiving residency-based property tax benefits on the other property.