The Consumer Price Index (CPI) is the most widely used measure of consumer price changes as it measures the average change over time in the prices urban consumers pay for goods and services.
Pursuant to Florida law, the additional homestead exemption for persons 65 and older, the exemption for totally and permanently disabled persons and the exemption for property used by nonprofit homes for the aged requires an annual adjustment of the income limitation as indicated by the CPI calculation.
The Save Our Homes amendment provides a limitation in annual increases to assessed value on residential property receiving a homestead exemption. After the initial year of homestead exemption, the assessed value for each following year cannot increase more than 3 percent (excluding additions or renovations) or the percent change in the CPI, whichever is less.