What happens to the Save Our Homes assessment limitation when the homestead is sold?

• A. Limitation carries over to the new owner
• B. Limitation is removed and the new owner is assessed at full taxable value
• C. Limitation is doubled
• D. The new owner receives a 50% reduction

Answer: (B)

Save Our Homes limits the annual rise in the assessed value of a homestead for the person who owns and occupies it. When the property is sold, that limitation does not transfer to the new owner. The property is reassessed at its current market value for the new owner, so they start with full taxable value for that year. If the new owner later qualifies for their own homestead exemption, a new Save Our Homes cap would apply to future increases, but the initial assessment after purchase reflects market value rather than the prior owner's capped value.