The 10% non-homestead cap was approved by voters in January 2008 and becomes effective as of the 2009 tax roll. This cap is “automatically” applied to all non-homestead properties, so no application is necessary. Non-homestead properties include those without a homestead exemption, such as 2nd homes, vacation homes, vacant land, commercial and rental properties.
The 10% cap will only ensure your assessed value does not increase more than 10% from your previous year’s certified assessed value, provided: (i) the ownership has not changed, (ii) there was not a split or combination of the lot in the previous year, or (iii) new construction has not occurred. This cap may or may not actually reduce your taxes due to other factors such as millage rates and non-ad valorem assessment, which are determined by the Property Appraiser. The 10% cap does not apply to school mileages.
If you purchase a property subject to the 10% cap, the property will be reassessed at full market value in the year following a change in ownership or control, similar to the way a homestead exemption property is handled. If you change ownership or control of a property subject to a 10% cap without the recording of a deed, you must notify the Property Appraiser promptly of that change. Failure to do so subjects the property owner to a lien for back taxes plus 15% interest per annum and a penalty of 50% of the taxes avoided.