Repair or Replace Calamity Damaged or Destroyed Property

My home flooded due to a Hurricane. Will my property's assessed value increase if I repair or rebuild my home?

Under Florida Law, if a property is damaged or destroyed by misfortune or calamity after the damage or destruction occurs, the property owner may continue the homestead exemption. The calamity provision in Florida Law protects property owners from an increase in their assessed value following a catastrophe when repairing/rebuilding their property. The owner must notify the Property Appraiser that they intend to repair or rebuild the property and use the property as the primary residence following the completion of repairs. Review the scenarios below to better understand how this may impact your property taxes:

• Elect not to rebuild - If homesteaded, the exemption will be removed on the January 1 following the damage and the property owner will have the 3-tax year statutory window to port (transfer) any Save-Our-Homes (SOH) assessment differential to a new homestead. Properties without a homestead will maintain the 10% non-homestead cap.

• Repair - Property owner makes necessary repairs and reoccupies the property. No impact to the assessed value cap. Please note: FEMA and Florida Building Code may require elevation of residential structures if they are located within a Special Flood Hazard Area and the cost of repairs equals or exceeds 50% (or 49%) fo the depreciated value of the structure.

• Elevate (flooded properties) - If the property owner is able to repair and elevate (lift) the lowest living level of the home above base flood elevation, the value of the newly constructed subarea(s) at grade level will be added above the assessed value cap. The elevated improvements will remain under the cap as long as they do not exceed 110% of the original structure or 1,500 SF, whichever is greater. The affected property owner has 3 years from the January 1 following the damage or destruction of the property to commence the changes, additions or improvements (will increase from 3 to 5 years effective January 1, 2025). Commencement date triggered by pulling of permit.

• Rebuild - If you repair and elevate (lift) the lowest living level of the structure above base flood elevation, the value of the newly constructed subarea(s) at grade level will be added above the assessed value cap. The elevated improvements will remain under the cap if they do not exceed 110% of the original structure or 1,500 SF for residential improvements, whichever is greater. You have 3 years from the January 1 following the damage or destruction of the property to commence the changes, additions, or improvements (this timeline will increase from 3 to 5 years effective January 1, 2025). The commencement date is triggered by pulling of a permit.
  • Below explains how we determine when square footage exceeds the 110%:
    • The primary area for a single-family space is labeled as “BAS” (Base heated/living space) and represents the baseline level of finish for the living area of the structure at 100%. This space is the primary living area which includes the kitchen. All other areas, also referred to as subareas, are measured as a percentage of the base area, as their level of finish is typically something less than the Base.
    • The description for each subarea “SAR”, gross area “AREA”, percentage of base “%B”, and the effective area “EFF.AREA” for each can be found on the Property Record Card.  The effective area takes into account the weighting (as a percent of base) for each subarea. Effective area will always be greater than or equal to your living area since it includes all subareas.
    • This information can be found on the Property Record Card which can be downloaded from our website (https://www.pcpao.gov/) from the Quick Pick Tool box. See example (Ex:1) below.
    • In the first example below (Ex:1), the effective area prior to the calamity was 1,524 SF. Accounting for the 110% (1.10 x 1,524), the effective area can increase to 1,676 SF without exceeding the existing capped/assessed value. Any square footage exceeding this amount would add value over the existing capped/assessed value. 
    • Graphic Ex:2 below shows the effective area increased from 1,524 to 2,369 SF. The amount exceeding the 110% (2,369 – 1,676) is 693 SF, which would be valued as new construction above the cap. The cap would then apply to this space going forward in future years under the same ownership.Calculations for this example are also presented in tabular form following Ex:2 below.

Examples of Rebuilding using Effective Area

• Ex:1 (At Grade Repair or Rebuild)
  

• Ex:2 (Elevated with Lower Level Garage)
  

Note: The “Excess Area Assessed at Just (Market) Value” would be the amount not covered by the Save-Our-Homes (SOH) or non-homestead cap. After being added to the tax roll, this area would fall under SOH or non-homestead cap protection in future years.