miamicuse writes:

Do I have my logic right?

Maybe. It depends. Think of the reduced exemption as an asset that you
will lose if you switch homesteads. You say the assessment is reduced
about 150K, and you pay about 2 pct/year in property taxes, so this
asset generates about 3K/year to you in tax savings, which as a stream
of payments is like having an asset of perhaps 60K present value
yielding a 5 pct after-tax return. This asset tends to grow as the
inflation rate is consistently above the 3 pct cap.

Now you will lose that asset in a switch, but perhaps you are switching
to a more costly house, which the SOH savings will grow faster and
eventually outdo the loss on the switch. It depends on the relative
values of the two properties, the inflation rate, the housing market,
and on how long you keep your properties.

Also depends on future changes to the law, which you can't exactly
predict. They're talking about portability of the SOH valuation now.

The SOH is a wacky thing. It is essentially an asset that you gain from
seniority and staying put, and lose by moving. Or dying, so you can
think of it as a punitive death tax!