Florida Statute 193.703 contains the Assessment Reduction of New Construction for Parent(s) or Grandparent(s) Living Quarters, commonly known as the Granny Flat Exemption. Per the statute, qualified Florida homeowners who add living quarters for a parent or grandparent can have all or part of the value of this new construction deducted from the assessment, saving on property and real estate taxes.
The value excluded cannot exceed:
- The increase in assessed value resulting from constructing or reconstructing the property for use as living quarters or
- 20% of the total assessed value of the property as improved.
A homeowner’s potential savings from the Granny Flat Exemption cannot be reduced on a local level.
Who is Eligible for the Granny Flat Exemption?
- The property must be homesteaded by the property owner
- The construction or reconstruction must be properly permitted
- The parent or grandparent must be 62 or older as of January 1st of the year which the reduction in assessed value is sought
- The ‘Granny Flat’ must be the permanent residence of the parent or grandparent
- The construction or reconstruction must have been completed after January 7, 2003
How do I apply for the Granny Flat Exemption?
Download and complete the application form from your county or property appraiser’s website. Be sure to attach all required supporting documents and provide the qualifying owner and parent or grandparent’s signature. Mail or file the application according to the provided instructions. All Granny Flat Applications are due by March 1st of the year in which the reduction in assessed value is sought. The Granny Flat Assessment Reduction will be automatically renewed annually. Homeowners must notify the Property Appraiser’s Office if they no longer meet the eligibility requirements.
