What happens to the 7% Expanded Homeowner Exemption when a property is sold?
When a property that is receiving the 7% Expanded Homeowner Exemption is sold to another homeowner, the expanded exemption remains in place for the year in which the property is sold. For the next year, the base equalized assessed value (EAV) from which the 7% expanded exemption is calculated is reset and becomes the EAV of the property in the year prior to when it was sold. Typically this new base EAV will be greater than the old base EAV, resulting in a smaller exemption amount needed to keep the increase in taxable EAV to 7%. For properties that sell in a non-reassessment year, their homeowner exemption amount typically will not get above 5,000.
