Property Tax Relief Package Passed

Earlier today, the Florida Senate passed a property tax reform package. We are happy to report that this evening the Florida House of Representatives also approved the plan.

The passage of this new tax plan took place after many weeks of negotiations. Although the two chambers had disagreements, legislative leaders agreed to a compromise during the final hours the Special Session on Tax Reform, and just one day prior to the deadline for language to be eligible for voter approval on January 29.

WHAT THE TAX PLAN MEANS FOR YOU!
Highlights of the new property tax reform package.

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.

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.

Tangible Personal Property Exemption
A $25,000 exemption is provided for each tangible personal property return. This provision applies to all taxes.

10% 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. This provision does not apply to school taxes.

Fiscally Constrained Countiesy
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.

Florida House of Representatives
Sun Sentinel Article

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