03-17-2008, 02:28 AM
When we contacted the Tax Office to apply for this deduction this past September, they warned us that a downside of it is that if the property values escalate as they did a few years ago for example, you would no longer be protected by the 'no more than 3% increase per year clause. The increases in your taxes (at the end of the 10 year period) would more than likely offset any savings you would realize. Not sure if this was scare tactics but it worked on us.