Taxes-homestead exemption confusion

[Daniel Toback]

Not sure the best way to word this succinctly, so I'll use an example.   I bought a house in September 2021 for 480,000.  It was appraised in January 2022 for 530,000  It was taxed last year at an appraised value of 330,000.  The previous owner had a homestead exemption and 65+.  I will be applying for the homestead exemption as this is my primary residence. 

Here is the question: Will the 10% cap from the homestead exemption be applied to 330,000 or my current value of 530,000?  Or am I completely off in general?  Thanks