Step 2. Determine how many owners are eligible for the exemption to calculate the potential maximum exemption.

Why? Again, this helps determine the potential maximum amount of homestead exemption.

For Example, two owners of a property who both reside on the property, have a potential maximum amount of homestead exemption of $50,000. If only one of three owners resides on a property jointly owned by them, then the maximum amount of homestead exemption is $25,000.

Definitions

• eligible owner - one who has an ownership interest in the property and generally resides (or supports those legally or naturally dependent upon them who reside) on the property.

• equitable title - the estate or interest of a person who has a beneficial right in the property that is legally owned by another. For example, the beneficiary of a trust has an equitable estate or interest in the trust property.

• legal title - legal ownership of the interest and rights in a property.

Legal Authority and References

Article VII, Section 6 of the Florida Constitution:

(a) Every person who has the legal or equitable title to real estate and maintains thereon the permanent residence of the owner, or another legally or naturally dependent upon the owner, shall be exempt from taxation thereon...

Also see 196.031(1) of the Florida Statutes and Rule 12D-7.007(1) of the Florida Administrative Code.

Practice

True or False?

• C. To be eligible for the homestead exemption, an owner of the property must reside on said property.

• D. Legal title and equitable title are not the same thing, but owners who hold either are entitled to all the same benefits of the homestead exemption.

NOTE: The potential maximum exemption amount from Step 2 cannot exceed the amount from Step 1. Therefore...

What To Do

...if zero, stop. If greater than zero, restate or amend the potential maximum exemption amountstated in step 1 as required, then go to step 3.