Property Tax on January Ballot

Legislature Puts Property Tax Reform on January Ballot

Measure to be decided on January 29

On October 29, 2007, the Florida House joined the Florida Senate on a package of property tax reforms that will be put before voters to decide on January 29, 2008. The package is significantly different than what was passed by both chambers just last week. The final constitutional amendment contains four items (outlined below) that seeks to reduce property taxes on both homestead property and non-homestead property.

Property Tax Reform Package

The property tax reform package includes both a general bill, SB 4D, and a Senate joint resolution, SJR 2D. Those provisions with the note (SJR 2D & SB 4D) denote sections of the bill that take effect only if SJR 2D is approved by the voters on January 29, 2008. Provisions with the note (SB 4D) denote sections that are not contingent upon voter approval.

Double Homestead Exemption (SJR 2D & SB 4D)
An additional $25,000 homestead exemption is provided for the value of homestead property above $50,000. This exemption does not apply to school taxes.

Portability (SJR 2D & SB 4D)
Homestead property owners will be able to transfer their Save Our Homes benefit (up to $500,000) to a new homestead within two years of giving up their previous homestead. If the just value of the new homestead is more than the previous home’s just value, the entire differential can be transferred; if the new homestead has a lower just value, the amount of the accumulated benefit that may be transferred is proportional to the value of the new homestead.

(For those who gave up their homestead in 2007 before the amendment was passed, the differential may be transferred if they apply for a new homestead January 1, 2008 or January 1, 2009.) This provision applies to all taxes, including school taxes.

Tangible Personal Property Exemption (SJR 2D & SB 4D)
A $25,000 exemption is provided for each tangible personal property return. This provision applies to all taxes.

Assessment Cap for Non-Homestead Property (SJR 2D & SB 4D)
Non-homestead property will have a 10% assessment cap (similar to Save Our Homes) but the cap will apply only to non-school levies. The 10% cap will sunset after 10 years, when it will be presented to the voters for re-approval. Most residential property will be reassessed at just value when it is sold; commercial property and residential properties with 10 or more units will be reassessed after a significant improvement or a sale. This provision will not take effect until the 2009 tax roll, or 2010 if the amendment is approved in November. This provision does not apply to school taxes.

Fiscally Constrained Counties (SB 4D)
The bill requires an annual appropriation to fiscally constrained counties to make up for revenue reductions resulting from the adoption of the constitutional amendment by the voters.