Property Tax Reform
On January 29, 2008, the people of Florida voted in overwhelming numbers to save nearly $10 billion in property taxes with the approval of Amendment 1. This tax relief is in addition to the $15 billion tax cut passed by the Florida Legislature in 2007. Together, they add up to almost $25 billion in property-tax cuts over five years for Florida homeowners and businesses.
For information about how to receive these new benefits, please read below or visit the Department of Revenue’s Web site online at www.myflorida.com/dor. You may also wish to contact your local property appraiser’s office.
Citizens will gain the freedom to purchase a new home without huge tax penalties. Rental home owners, second home owners and businesses will benefit from limits on future tax increases. The amendment contains two provisions that we have long advocated: doubling the homestead exemption and the ability for Florida families to take with them their Save Our Homes tax savings.
Specifically, the constitutional amendment:
- Doubles the homestead exemption for almost all homeowners, providing an average savings of about $240 annually. The new exemption applies fully to homesteads valued over $75,000, and partially for homesteads valued between $50,000 and $75,000. This new exemption does not apply to school taxes.
- Allows portability: The Governor has heard from many Floridians that they feel trapped in their homes. Portability allows homeowners to transfer their Save Our Homes tax benefits from their current home to a newly purchased home within any Florida county. Portability applies to homes purchased in 2007 and later, and the benefit is capped at $500,000.
- Provides an assessment cap of 10 percent for all properties not previously capped: While homestead properties are already capped at three percent, now all other properties, including rental properties, second homes, and business properties, will be protected from huge tax increases. This new exemption does not apply to school taxes.
- Creates a new $25,000 exemption for business property, including office furniture, computers, machinery and equipment.
The passage of Amendment 1 will help jump start Florida’s housing market and make Florida even more business friendly. Again, I encourage you to please read below or visit the Department of Revenue’s Web site online at www.myflorida.com/dor for information about how to receive these new benefits.
- Find Out How to Receive Amendment 1 Benefits
Contains information regarding what actions must be taken by March 1, 2008, in order to take advantage of Amendment 1 benefits.
- Save Our Homes Portability
Apply by March 1, 2008, to transfer your Save Our Homes benefit to your new home.