November 5 , 2007

ISSUE 1191

LEGISLATURE PUTS PROPERTY TAX RELIEF ON THE BALLOT

The Florida Senate and the House of Representatives agreed Oct. 29 on a proposed constitutional amendment for property tax relief that will be on the ballot on Jan. 29, 2008. The proposal has four major components: doubling the homestead exemption, providing portability of Save Our Homes, limiting non-homestead assessments, and exempting tangible personal property.

The measure doubles the homestead exemption from $25,000 to $50,000 and applies an exemption to the third $25,000 of value of a homestead. For example, a homestead property would be exempt from tax on the first $25,000 of value. The second $25,000 would be taxed, and the value from $50,000 to $75,000 would be exempt. The proposed exemption is not applicable to school taxes.

The Save Our Homes portability section would allow homeowners to carry the full amount of their current Save Our Homes exemption to a new home if they upsize in value. Homeowners who downsize could carry a pro-rata share of their Save Our Homes exemption based on the market value of the new home as a percentage of the market value of their old home. A maximum of $500,000 could be carried over.

The measure also limits assessments on non-homesteaded real property to 10 percent annually. This section would limit the increase in assessments in a single year and provide predictability of taxes for property owners who have seen extraordinary increases. This provision would sunset in 10 years unless voters approve an extension.

The proposal also would exempt tangible personal property at $25,000 per person per county. This sets the maximum exemption in the Constitution and could only be raised if the Constitution was amended again.

The Greenbelt agricultural assessment was not addressed, but if this proposed amendment is approved by voters and counties end up with less revenue, then Greenbelt could be scrutinized more closely in the future.

For additional information, producer members may contact the FFVA Government Affairs Division at (850) 521-0455 or butch.calhoun@ffva.com.