A couple in Florida recently saw their property taxes jump from $15,000 to $91,000 a year after doing what many of us might call a smart long-term move: renovating and expanding their home.

They kept the foundation and outer walls intact, assuming their homestead and Save Our Homes protections would remain in place. But the renovations (which included a second story and a new roof) triggered a full reassessment of their home’s value, from $650K to over $4.4M based on surrounding sales, not the cost of construction.

Here’s what made it worse:

A neighboring property sold for $4.9M—all cash—right before their reassessment.
All-cash buyers have flooded the market in their ZIP code (62% of transactions in 2023), driving up comps and pushing appraisals higher.
Even though they appealed, the county cited Florida law: substantial improvements = new construction = full market reassessment.

This isn’t just a sob story, it’s a wake-up call for investors and homeowners.

Key Takeaways:

Renovations can backfire if you're not careful with how improvements affect property tax laws in your state.
All-cash buyers can unintentionally raise your comps—and your tax burden—overnight.
Don’t assume local protections will stay in place if you “work around” them—confirm everything in writing before starting.
Talk to local appraisers, attorneys, and tax consultants before making major changes to homesteaded or long-held properties.

This couple now faces losing the home they’ve loved for over 20 years—not because they overleveraged, but because the system wasn’t built for people trying to stay put.

Would love to hear from others:

Have you seen property tax surprises like this?
How are you navigating rising assessments or planning renovations in a high-growth market?

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Renovation Nightmare: How a Dream Home Remodel Triggered a $91K Property Tax Bill

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