Homestead Exemption Fraud

Protecting Your Florida Homestead Exemption

The Simple Rule: To keep your Homestead Exemption status up to date, immediately tell the Sarasota County Property Appraiser if your status or how you use your property changes. This provides an opportunity for our team to review your status and eligibility and make any necessary adjustments in a timely manner. To report changes or request the removal of your homestead, use our contact form or call us at 941-861-8200 to speak with an Exemptions Specialist.

Warning: Homestead tax liens are imposed when you do not report a change in a timely manner, and we discover that you have improperly benefited from the homestead exemption and assessment limitations. Our office is required by Florida law to recapture all tax savings for each year of the violation.

What type of changes should I be concerned about?

Florida homestead law requires notification of any changes to the property's use or the owner's status. Common events for disqualification include:

Family and Marital Status

  • Marriage: Only one Homestead Exemption is allowed per family unit. Separate ownership does not allow for separate Homestead claims.
  • Remarrying: If your current status includes a widow or widower exemption, or a veteran's surviving spouse exemption or discount.
  • Divorce: If ownership is shared, only the former spouse who still lives in the home can claim the exemption. The "Save Our Homes" (SOH) benefit, which limits assessment increases, may be reduced by half.
  • Death: Exemptions are generally not transferable, except to a qualified surviving spouse or minor children in specific cases.

Annual Income or Disability Status

  • 65+ Senior Limited Income: When your Adjusted Gross Income (AGI) exceeds the annual limitation for this exemption.
  • Disability Exemption: When your household's gross income exceeds the annual gross income limitations for the disability exemption.
  • Veteran Disability Status: If your veteran's disability ratings and status increase or decrease.

Property Use and Residency

  • Rent: You rent out all or part of the property.
  • Commercial Use: You start using all or part of the property for a business or commercial purpose.
  • Move: You permanently move out of the homesteaded property

Claiming Residency Elsewhere

You must report a change if you establish residency anywhere else, including:

  • Your Voter Registration is no longer at the Homestead address.
  • You obtained or maintained a driver’s license or state-issued identification in another state.
  • Your Florida Driver's License or Florida ID has been changed to an address other than your Homestead.

Claiming Other Tax Benefits

You claim or receive a residency-based property tax benefit on another property:

  • In Florida.
  • In another state or jurisdiction.

"Another jurisdiction" means any part of the United States, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, or Guam. Depending on the jurisdiction, the government agency administering property tax benefits can be the territory, state, county, municipality, township, or borough. In some cases, such as in New York (STAR program), the state administers the primary exemption. In contrast, local jurisdictions may administer personal exemptions, including those for veterans or individuals with disabilities.

Note: If you or your spouse receives a property tax credit or discount on a tax bill from Florida or another jurisdiction, you must confirm that the benefit is not based on your permanent resident status there.

What are the Penalties for Improper Claiming of Homestead and Other Benefits?

Florida offers generous tax savings, but the law is strict. Abusing this privilege can be very costly.

If the Violation Is For
The Penalty Is
Important Note
The Current Tax Year Denial of Exemption: The exemption is removed. The "Save Our Homes" (SOH) cap is reset, and your property is now assessed at its full market value. You will receive a denial notice mailed by July 1. Denials may be appealed to the Value Adjustment Board.
A Past Tax Year (Up to 10 Years) Homestead Tax Lien: A lien is placed on your property to recover all unpaid taxes. The lien must include a 50% penalty on the unpaid taxes for each year of the violation, as well as 15% annual interest. You will have 30 days' notice before it is recorded. The lien can be placed on any other property you own in Florida if you no longer own the original homestead property.
How do I obtain a new exemption status after a violation?

To apply for a new exemption for the subsequent tax year (the year after the violation), you must:

  1. File a new DR-501 application by the March 1st deadline.
  2. Provide proof that the facts of ineligibility have been corrected.
Everyone Pays More When Someone Cheats—Help Us Prevent Fraud

If you suspect Homestead Exemption fraud in Sarasota County, don't hesitate to contact us online with our confidential reporting form or reach us by phone at 941-861-8200.

Things to Remember Before You Call:

No Minimum Stay: A person is not required to live in Florida for a minimum number of days or months, as long as they meet the eligibility requirements.

Owning Multiple Homes: A person can own another home in Florida or another state, as long as they are not receiving a residency-based property tax benefit on that other property.

 

Report Homestead Fraud Confidentially

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