{"id":6589,"date":"2008-01-18T09:31:00","date_gmt":"2008-01-18T14:31:00","guid":{"rendered":"http:\/\/blog.ewm.com\/2008\/01\/18\/florida-property-tax-proposed-constitutional-amendment\/"},"modified":"2008-01-18T09:31:00","modified_gmt":"2008-01-18T14:31:00","slug":"florida-property-tax-proposed-constitutional-amendment","status":"publish","type":"post","link":"https:\/\/blog.myewm.com\/?p=6589","title":{"rendered":"Florida Property Tax Proposed Constitutional Amendment"},"content":{"rendered":"<p>On Tuesday, January 29, 2008, Florida voters will have an opportunity to amend the way we are currently taxed on our real estate holdings.  Passage of the Amendment will require a positive vote equal to 60% of those voting. The benefits of the Amendment favor current homestead property owners the most, but there would be some benefits for non-homestead residential and commercial properties, as well.<\/p>\n<p>The Constitutional Amendment being offered to the voters is a product of the intense Legislative sessions held in October, 2007.  While our legislators are not unanimous is their support of the Amendment, <strong>the leadership of our Florida Association of Realtors (FAR) is encouraging the passage of this ballot question. <\/strong> The feeling of FAR is that these new measures, especially the \u201cportability\u201d feature for homestead property owners, will offer immediate relief to homestead property owners who have been reluctant to purchase  new homes over these past few years.  Their hesitancy has been due to the fact that many homeowners have an existing favorable tax base provided to them through the Save Our Homes Amendment passed by Florida voters in 1992.  Upon the purchase of a new home today, the law eliminates these tax savings, which in the longest cases have been built-up over the past 13 years.<\/p>\n<p>Provisions of the Amendment include the following:<\/p>\n<ul>\n<li><strong>Increase of the Homestead Exemption from $25,000 to $50,000<\/strong>.  This additional exemption of $25,000 will only apply if the assessed value of the property exceeds $50,000.  There are very few properties in South Florida assessed for less than $50,000; therefore, most properties in our area would receive the full additional exemption.  However, this additional $25,000 exemption would not apply to the school district levies.  Since the school district taxes represent approximately 40% of South Florida tax bills, the additional $25,000 exemption would be equivalent to about $15,000, making the new total annual homestead exemption equivalent to about $40,000.  Assuming an average South Florida millage rate of 2 mils, a $40,000 exemption will save the homestead taxpayer about $800 per year, or about $300 more than the current homestead exemption saves.<\/li>\n<li><strong>\u201cPortability\u201d allowing homestead property owners to transfer up to $500,000 of  \u201cassessment difference\u201d to a new home<\/strong>.  The amount of the \u201cassessment difference\u201d is the difference between the \u201cjust market value\u201d and the \u201ctax assessed value\u201d of the owner\u2019s current home.  Homestead property owners purchasing a new home of equal, or greater, value will be allowed to transfer 100% of their \u201cassessment difference\u201d. The amount of \u201cassessment difference\u201d which can be transferred when the new home\u2019s \u201cjust market value\u201d  is less than the old home\u2019s \u201cjust market value\u201d, will be reduced by the same percentage difference existing between the values of the two homes.  For example, if the assessment difference which has accumulated in the old home is $500,000 and the old home\u2019s value is $1,000,000 and the new home\u2019s value is $600,000, the owner would be limited to using only 60% of his or her  \u201cassessment difference\u201d, or $300,000, to reduce the tax assessed value of the new home.  If the Amendment passes, owners who qualified for homestead exemption on January 1, 2008 will be allowed to transfer their \u201cassessment difference\u201d from a property where they held a homestead exemption in 2007.  If an owner qualifies for homestead exemption for a new home by January 1st of any particular after 2008, they may transfer their \u201cassessment difference\u201d from a homestead property that they owned in either of the two immediately preceding years.  All other features of the Save Our Homes Amendment would remain intact, including the limit of increase upon the annual tax assessed value to a percentage  no greater than the previous year\u2019s CPI or 3%, whichever is less.<\/li>\n<li><strong>Allowance of a $25,000 annual exemption for business tangible personal property<\/strong>.  This exemption would also include school district levies.  Tax savings would be equal to about $500 per year.<\/li>\n<li><strong>Limit the increase of non-homestead property tax assessed values to 10% per year for levies of all taxing authorities other than school districts.<\/strong>  The assessment increase limitation would apply until there is an ownership change or until there is an improvement to the property that increases its just market value by at least 25%.<\/li>\n<\/ul>\n<p>This Amendment will provide substantial future tax savings (depending upon the &#8220;assessment difference&#8221; described above)  to Homestead Property Owners desiring to move; however, it offers little relief to non-homestead property owners.  While we would have preferred to see more benefits offered to our second-home and commercial property owners, we recommend passage of this Amendment.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On Tuesday, January 29, 2008, Florida voters will have an opportunity to amend the way we are currently taxed on our real estate holdings. Passage of the Amendment will require a positive vote equal to 60% of those voting. The benefits of the Amendment favor current homestead property owners the most, but there would be [&hellip;]<\/p>\n","protected":false},"author":1433,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_expiration-date-status":"","_expiration-date":0,"_expiration-date-type":"","_expiration-date-categories":[],"_expiration-date-options":[]},"categories":[59],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.myewm.com\/index.php?rest_route=\/wp\/v2\/posts\/6589"}],"collection":[{"href":"https:\/\/blog.myewm.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.myewm.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.myewm.com\/index.php?rest_route=\/wp\/v2\/users\/1433"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.myewm.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6589"}],"version-history":[{"count":0,"href":"https:\/\/blog.myewm.com\/index.php?rest_route=\/wp\/v2\/posts\/6589\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.myewm.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6589"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.myewm.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6589"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.myewm.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6589"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}