New Florida Property Tax Amendment Explained
Okay, it’s official. We finally have a new Florida Property Tax Amendment we will be voting on come January 29, 2008.
This proposed Constitutional Amendment would make the following proposed changes if approved:
- Portability of Save our Homes. A lot of home owners have been staying put in their homes due to having a lot Save our Homes (SOH) assessed value on their property compared to current assessed values. This allows people who bought their homes years ago to have much lower property taxes than a new owner on that same home. For this reason, many Floridians stay put in their home and refuse to buy a new one. To help accelerate the housing market, this amendment adds in a proposed portability of SOH benefits of up to $500,000. Therefore, if you’re SOH value is $200,000 and you’re assessed value is $400,000 you have a benefit of $200,000. Now if you go to buy a $500,000 home, you can bring that $200,000 SOH Benefit and have a new SOH assessed value at $300,000 on the new home.
- Expands the Homestead Exemption by $25,000. Currently homesteaded properties enjoy a $25,000 exemption from their assesed value which can save a homeowner hundreds of dollars a year. This amendment would effectively double the exemption to $50,000. However, the additional $25,000 exemption would not apply to school tax levys so it’s not a true doubling but very close. This should save all homesteaded property owners a couple hundred a year.
- 10% annual assessment cap on all non-homesteaded properties. One of the biggest benefits to homesteading a property is the Save Our Homes yearly assessment growth cap at 3%. However, non-homesteaded properties currently have no cap and property taxes can sky rocket on an investor. This cap will somewhat keep them in line. This cap will expire in 10 years and will have to be voted on again.
- Creates a Tangible Personal Property Exemption of $25,000 for business properties. For the average commercial property this will save business owners around $450 a year. Addtionally, for any property owners who have less than $25,000 worth of tangible personal property, it will save them having to file detailed returns.
You can read more about the new Florida Property Tax Amendment from the Florida House of Representatives.
February 1st, 2008 at 2:31 pm
Dear sirs, I am currently a homeowner of a mobile home in Dunedin Florida. Although I do not reside there I have a father who is 89 and stays in my home (at no cost to him) six months or longer. I bought the property eleven years ago for a modest price so that he could enjoy the riches of your state. I have supported your state with taxes and the buying of consumer goods for the past eleven years. I make frequent trips to Florida just to make sure he is doing well and enjoy some warmth in the winter also.
I am a retired resident of Rhode Island living on a fixed income. I am proud to say that I am an American citizen that served in the military. I pay full taxes in R.I. and in Florida. What makes me a so called “snowbird”. Is there any justice for us who support your state. Florida has to reconize that we snowbirds support your state as much as anyone who lives there perminitly. Don’t you think that at the very least your legislators could do is to give us the same benifits that homesteaders receive? Even if the benifit was based on the amount of time spent in your state. Remember we are all americans. Not just Floridans. This new bill seems to me to discriminate against all americans, not just the snowbirds.
Another comment I have is that without the tourest trade in Florida there would not be a Florida for Floridians to enjoy. There is no industryTo speak of, only service related jobs that need someone to serve. It would seem to me that your state would greatly benifit from anyone who spends time there. Thank you for your time, and I will be egarly lookin foward for your reply. sincerely Joseph T. Daniels
February 13th, 2008 at 6:16 pm
I just retired and would like to buy a second home in Florida. But I will not do so now that I understand how your real estate tax laws discriminate against non-residents. It appears to me that non-resident owners are really getting screwed.
I know the real estate industry in Florida is hurting badly, and great deals can be found, but until you stop discriminating against non-residents, like me, things aren’t likely to get better. With the cost of home owners’ insurance, the real estate taxes on non-residents, and dropping property values, Florida doesn’t look like it will make sense for real estate investing for a long time.
March 5th, 2010 at 3:49 am
Thank you for sharing such an topical article with all of us. I’ve bookmarked your blog will come back for a re-read again. Keep up the very good work.