In short: In Russell v. Hassett (3d DCA, June 28, 2023), a Key Largo owner lost his homestead exemption for 2007 because he lived in Hong Kong. The court upheld that revocation but held back-tax liens must be figured using the 10% non-homestead cap, not full just value. He also gets a new trial on whether he qualified in 2008 through 2015.
The Facts
James Hassett bought an Ocean Reef Club home in Key Largo in 2003 and claimed a homestead exemption starting with 2007.
On January 1, 2007 he was living in Hong Kong as his firm’s Far East managing director, and his family lived in Cincinnati. In a 2010 divorce affidavit he called the Florida house a holiday home.
Monroe County renewed the exemption automatically every year from 2008 through 2015.
In 2017 the property appraiser revoked the 2007 exemption, denied 2016, and recorded liens for 2007 through 2015 of about $71,000, calculated at full just value with no cap. Hassett paid and sued.
The trial court ruled that ineligibility in 2007 forfeited every later year and excluded his evidence that he later moved to Florida full time, but ordered the liens recalculated using the 10% cap.
The Decision
The Third District Court of Appeal affirmed in part and reversed in part (Case No. 3D21-2432, June 28, 2023; opinion by Judge Scales).
Revocation for 2007 stood, because competent evidence showed Hassett was not a permanent Florida resident on January 1, 2007.
When an exemption is revoked, the home becomes non-homestead residential property, which the Florida Constitution protects with a 10% annual assessment cap. Back-tax liens must be computed with that cap. A Department of Revenue rule requiring just value could not override the constitution; the department conceded the point.
Each tax year stands alone. Nothing in the automatic-renewal statutes makes later years unchallengeable, so Hassett gets a new trial on 2008 through 2015, where he bears the burden of proving eligibility.
The Law
Article VII, § 4(d) (Save Our Homes) caps homestead assessment increases at 3%, and § 4(g) caps non-homestead residential increases at 10%. Section 196.161 governs liens for improperly claimed exemptions.
Current law (2026): the Department of Revenue amended Rule 12D-8.0064 effective March 27, 2025, to apply the 10% cap to retroactive revocation liens. Chapter 2024-158 also requires lien notices to explain the years and calculations, and limits back taxes in clerical-error cases.
Lessons
- Homestead requires permanent residence on January 1. A vacation home with a homestead exemption is a back-tax and penalty problem waiting to happen.
- If an appraiser revokes years of exemptions, check the math. Liens computed at full just value may be wrong after Hassett.
- Each year can be fought separately. Moving to Florida later can qualify later years.
- Heirs inheriting a home should confirm the decedent’s exemption was valid, since unpaid back taxes become a lien on the property.
Source: Opinion, Russell v. Hassett, No. 3D21-2432 (Fla. 3d DCA June 28, 2023)
Watch the Oral Argument
This is the recording of the oral argument, posted on the channel. What lawyers and judges say at argument is not the ruling; the decision is summarized above.
Homestead Revoked for 9 Years: Does the 10% Cap Still Apply? | Russell v. Hassett, 3D21-2432
Go Deeper
- Purge Paid, But Homestead Still Ordered Sold for Child Support? (Pacin v. Granja)
- Divorce Deal vs. Survivorship: Who Gets Joint Property When an Ex Dies? (Ebanks v. Ebanks)
- Testamentary Capacity in Florida: When Dementia Makes a Will, Deed, or POA Invalid
Frequently Asked Questions
What happens if my Florida homestead exemption is revoked?
The appraiser can record a lien for back taxes, penalties and interest for the years you did not qualify. Under Russell v. Hassett, those taxes must be calculated with the 10% non-homestead cap.
How many years back can a property appraiser go?
Section 196.161 allows up to 10 years in many cases, though 2024 amendments limit clerical-error cases. Check the current statute for your facts.
Can I challenge revocation of later years separately?
Yes. Hassett holds each tax year stands on its own, so you can prove eligibility for later years even if an early year fails.
What is the 10% cap in Florida property taxes?
Article VII, § 4(g) limits annual assessment increases on non-homestead residential property to 10%.
Talk to a Florida homestead and probate lawyer
Weidner Law, P.A. handles Florida homestead, probate and real estate disputes from St. Petersburg. If you need a probate real estate lawyer, call (727) 954-8752 or email weidner@mattweidnerlaw.com.
Read the law yourself, free: the full Florida Probate Code and Probate Rules and the Florida Trust Code are on floridarules.net.
This article is general information about Florida law, not legal advice about your situation. Reading it, watching the videos, or contacting the firm does not create an attorney-client relationship. Every case turns on its own facts, and past results do not guarantee a similar outcome. The hiring of a lawyer is an important decision that should not be based solely upon advertisements.
