Question

Garth decided to move out of a small homestead home and into a larger more expensive one. The market value of his old home at the time of sale was $250,000, but his assessed value after applying his SOH benefit was only $175,000. The just value of the new home was $325,000. Using the Portability provision of the Save Our Home Benefit, what would be the taxable value of the new home for city taxes?

Answer 1

Answer:

$200,000

Explanation:

we must first determine the assessed value not taxed on Garth's old home:

market value of Garth's old home - assessed value = $250,000 - $175,000 = $75,000

now we subtract $75,000 from the market value of Garth's new home:

$325,000 - $75,000 = $250,000 = adjusted assessed value of Garth's new home

The taxable value of Garth's new home (for city taxes) = adjusted assessed value - homestead exemptions (for city taxes) = $250,000 - $50,000 = $200,000