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FYI: The following
article is compliments of Mizner Title & Escrow as provided
by FHBA.
After intense wrangling, the Florida Legislature passed a
$12 billion property tax relief plan late Monday night that
lawmakers say will gain public support and help jumpstart
the state's economy. Lawmakers set aside their nearly week-long
standoff to pass a less ambitious tax relief plan.
While the plan isn't as strong as the Florida House of Representatives
pushed for, it does provide key economic boosting factors
that will aid Florida's home building industry.
Specifically, the just-passed property tax relief package
will provide portability - allowing primary home owners (homestead
properties) to transfer benefits from the Save Our Homes three
percent assessment cap on their properties when they move,
a doubling of the existing $25,000 homestead exemption for
homes valued at more than $50,000, and a 10 percent annual
assessment cap for non-homestead properties such as businesses
and second homes.
All of this will appear as a proposed constitutional amendment
on the January 29, 2008 presidential primary ballot.
"FHBA members should be encouraged that we will have
an opportunity to vote on needed property tax relief this
January," said David Hart, FHBA's Vice President of Legislative
and Governmental Affairs. "However, this package is only
a first step toward real reform and our industry recognizes
that much more work is needed."
Below are additional details on the just-passed relief package:
Portability
- 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.
Double
Homestead Exemption -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.
Tangible Personal Property Exemption - A $25,000 exemption
is provided for each tangible personal property return. This
provision applies to all taxes.
Assessment
Cap for Non-Homestead Property - 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 - 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.
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