Under Save Our Homes portability when the new homestead is more expensive, how is the assessed value of the new home calculated?

• A. (market value of the new home / market value of the old home) × the assessed value of the old home
• B. (market value of the old home / market value of the new home) × the assessed value of the old home
• C. The new home's market value minus the old home's market value times the old assessed value
• D. The new home's market value divided by the old home's assessed value

Answer: (A)

Save Our Homes portability lets you transfer your tax benefits from your old homestead to a new one by preserving the same relationship between assessed value and market value. When the new home is more expensive, you adjust the old assessed value by the ratio of the new market value to the old market value. Put simply, New assessed value = (New market value / Old market value) × Old assessed value. This keeps the proportion you could benefit from under SOH intact on the larger property, rather than adding a fixed amount or using an incorrect ratio. The other approaches would distort that proportional transfer by either reversing the ratio, using a difference, or mixing values in a way that doesn’t reflect the intended porting.