If your new residence has a higher market value than your former residence, the portability amount is determined by subtracting the assessed value of the former home from its market value. For example, if the market value of your previous home is $250,000, but the assessed value is $150,000 because of the SOH benefit, then the assessed value of your new home will be reduced by $100,000, and the 3 percent SOH cap will continue on that portion of your new home’s assessed value. If the new residence has a lower market value, you can transfer a percentage of the difference from your previous property to your new home. To qualify for portability, you must establish your new residence on or before January 1 of the third year after leaving or selling your prior residence.
Sound complicated? Don’t worry, we handle the math for you. If you qualify for portability, we will send you a portability transfer form when your new homestead exemption is approved. You can find out how much you have accumulated in SOH savings by doing a property search on our website and clicking on the portability button. The deadline to file an application for portability is March 1.
