Residential property owners have available a limit on the percent of increase of their home that will be subject to property tax. This provision went into effect beginning with the 1998 tax year. This limited appraised value is commonly referred to as the 10% Residential Cap.This provision is only available to property owners who have qualified their home under the homestead property tax exemption. To be eligible the owner must have qualified for a homestead on the property in the prior tax year.Property owners who have recently purchased their home and are qualifying for a homestead exemption on this property for the first year will not be eligible for a capped value.Although the market value may increase more than 10% in a year, property that qualified for a capped value will have its limited appraised value established at a value not to exceed 110% of the prior year's appraised value. A property owner's tax bill will be calculated on the basis of the new capped value.So long as the property owner qualifies, the capped value will be calculated for subsequent years. The basis for the capped value is always determined by the prior year's appraised value.