Have you ever wondered why your property taxes are higher than your neighbor’s property taxes since you both have a similar home and are homesteaded? Here are some reasons why this can happen.
- Homesteaded properties have up to a 3% cap on the amount the assessed value can increase per year. If your neighbor owned their home for a longer length of time, then the 3% cap has been in effect longer, impacting the assessed value. The 3% cap is especially beneficial when the Just (Market) Value increases more than 3% per year.
- Your neighbor could have benefited from Portability or Save Our Homes. This benefit allows a homeowner to transfer all or a portion of the tax savings received from one homesteaded property to another, not to exceed $500,000. If a home utilized Portability or Save Our Homes, then that reduces the homesteaded property’s assessed value. The Portability or Save Our Homes total can be calculated by subtracting your property’s Assessed Value from its Just (Market) Value. You can also find this amount on your TRIM notice or by calling our office. For more information on this, visit sjcpa.gov/portability.
- Your neighbor could be receiving other exemptions besides just homestead exemption. Other exemptions include widow(er), senior, disabled civilian, military, first responder and more. For a full list of other exemptions and the qualifications for each, visit sjcpa.gov/otherexemptions. Exemptions can be applied for at your convenience through this website at www.sjcpa.gov/exemptions or by visiting our office.
- If you’ve updated your home with an addition, renovation or extra feature such as a pool, screen enclosure or other improvement, then this can increase the value of your property, which increases your property taxes. My office is notified when a building permit is pulled on a property, and we use that information to properly adjust the property’s appraised value based on the new construction added.