Which statement best describes the impact of the Saved Our Homes Act on property taxes?

• A. It lowers taxes for all buyers
• B. It has no impact on property taxes
• C. It affects commercial properties only
• D. It can raise taxes after purchase due to lifted limitations

Answer: (D)

The idea being tested is how a change in ownership interacts with tax assessment rules that cap annual increases. Save Our Homes limits how much the assessed value of a homestead property can rise each year, protecting owners from rapid tax increases. But when the property is sold, those limits can be lifted or reset for the new owner, meaning the assessor may revalue the property closer to its current market value. If the market value is higher than the capped value, the new owner faces a higher assessed value and thus higher property taxes in the first year after purchase. After that, the usual cap can apply again to future increases, but the initial transfer can trigger a tax rise. So the act can raise taxes after purchase due to the lifting/resetting of the previous limitations.