What does Homestead mean?

[Kenneth Bradford]

In the Philadelphia area when you look up a property for taxes, revenue etc.., Under account information it has the word "Homestead". Some of the properties have a dollar amount under thar word, some do not. Please explain. Thanking you in advance.

[Fred Heller]

Homestead is the land and home which is occupied by the owner as his principal dwelling and is protected from liability for any debts of the owner (other than a mortgage). In short, if you declare bankruptcy the courts cannot seize your homesteaded property to pay off those debts. 

Homestead law is unique to the United States. It started in Texas when it was an independent nation, and has since spread to many other states.

In addition to protection from debt liability, there are also certain tax protections for homesteads. Here in Texas yearly tax appraisals are capped at 10% for homesteaded properties.

So if you look at the taxpayer database in Houston, where property values have been soaring the last few years, you will see the "market value" and the "appraised value." For homesteaded properties the "appraised value" can be significantly lower than the market value. If you own a rental property, which can't be homesteaded, your appraised value will be the same as the market value.

There is an additional homestead exemption for people 65 and older. Their appraised value on homesteaded property is frozen once they turn 65.

Does that make sense?