I used to live in Florida and amazingly enough the homestead exemption works pretty well. I&#x27;m sure there are some people abusing it, but it&#x27;s effective overall. You can only have it on one home and it doesn&#x27;t apply to businesses so the only real fraud angle would be to live out of state and take the exemption on a single Florida property. You have to be a citizen or permanent alien resident which weeds out foreign buyers looking to park money. You&#x27;ll also need to be able to access its mailbox, be registered to vote at the address, etc etc. A lot of potential legal trouble for a $50,000 valuation haircut on your tax bill.<p>The fact that Florida has no state income tax is an even bigger incentive to actually reside in Florida if you have a lot of passive income coming your way.