Florida property values rely on accurate valuation for taxes, sales, and insurance. Common methods include market value, cost approach, and income capitalization. Market value, often used, compares a property to recent sales of similar properties; inaccuracies arise from dissimilar comparisons. The cost approach calculates the cost to rebuild, adjusted for depreciation, suitable for unique properties but prone to subjectivity in depreciation estimates. Income capitalization, applicable to income-generating properties, values based on potential net operating income; cap rates vary significantly across Florida markets (e.g., different rates for Miami-Dade vs. rural counties). Assessments directly impact property taxes, which are capped by Save Our Homes amendment; increases are limited to 3% annually or CPI change, whichever is lower, for homesteaded properties. Improper valuation leads to under or over taxation. Litigation regarding property valuations is prevalent, resulting in legal fees and potentially altered tax rolls. Homestead exemptions provide significant tax relief for primary residences. According to the Florida Department of Revenue, a reassessment of property values occurs annually in each county.