Homestead exemption

The homestead exemption is a legal regime to protect the value of the homes of residents from property taxes, creditors, and circumstances that arise from the death of the homeowner's spouse.
Such laws are found in the statutes or the constitution of many of the states in the United States. The homestead exemption in some states of the South has its legal origins in the exemption laws of the Spanish Empire. In other states, they were enacted in response to the effects of 19th-century economy.
Description.
Homestead exemption laws typically have four primary features:
For the purposes of statutes, a homestead is the one primary residence of a person, and no other exemption can be claimed on any other property anywhere, even outside the boundaries of the jurisdiction in which the exemption is claimed.
In some states, homestead protection is automatic. In many states, however, homeowners receive the protections of the law only if they file a claim for homestead exemption with the state. Furthermore, the protection can be lost if the homeowner abandons the protected property by taking up primary residence elsewhere.
Immunity from forced sale.
Different jurisdictions provide different degrees of protection under homestead exemption laws. Some protect only property up to a certain value, and others have acreage limitations. If a homestead exceeds the limits, creditors may still force the sale, but the homesteader may keep a certain amount of the proceeds of the sale.
California protects up to $75,000 for single people, $100,000 for married couples, and $175,000 for people over 65 or legally disabled. In California, SB 308 was introduced in early 2015. It initially proposed a $700,000 homestead exemption, regardless of age or marital status. It has recently been amended down to $300,000.
Texas, Florida, Iowa, South Dakota, Kansas, and Oklahoma have some of the broadest homestead protections in the United States in terms of the value of property that can be protected.
Texas's homestead exemption has no dollar value limit and has a exemption limit for homesteads inside of a municipality (urban homestead) and for those outside of a municipality (rural homestead). The rural acre allotment is doubled for a family: can be shielded from creditors in Texas for a rural homestead.
In Kansas and Oklahoma, exemptions protect of land of any value outside of a municipality's corporate limits and of land of any value within a municipality's corporate limits. Most homestead exemptions cover the land including fixtures and improvements to it, such as buildings, timber, and landscaping.
Nevada exempts $605,000 in equity from sale on execution, but for homesteads for which allodial title has been established and not relinquished, the exemption extends to all equity in the homestead.
New Mexico has a $60,000 exemption. Alaska has a $54,000 exemption.
Colorado has a $75,000 exemption, or $105,000 for people who are over 60 or disabled.
In most states, the real dollar value of "protection" provided by the laws has diminished, as exemption dollar amounts are seldom adjusted for inflation. The protective intent of such laws, with some notable exceptions like those stated above, has been eroded in most states.
Property tax exemption.
A homestead exemption is most often on only a fixed monetary amount, such as the first $50,000 of the assessed value. The remainder is taxed at the normal rate. A home valued at $150,000 would then be taxed on only $100,000 and a home valued at $75,000 would then be taxed on only $25,000.
The exemption is generally intended to turn the property tax into a progressive tax. In some places, the exemption is paid for with a local or state (or equivalent unit) sales tax.