On October 29, the Florida legislature passed a tax reform package that includes increasing the homestead exemption, allowing homestead property owners to transfer their Save Our Homes benefit, a Tangible Personal Property Exemption, and an assessment cap for Non-Homestead properties. This reform package requires 60% voter approval on the January 29, 2008 referendum.
The following is a summary of the various tax reform provisions. For more information and details, please visit the Florida Senate webpage.
Visit the Department of Revenue's web page for Frequently Asked Questions about Property Tax Reform (http://dor.myflorida.com/dor/property/reformfaqs112107.pdf.)
Double the Homestead Exemption
This bill offers an additional $25,000 homestead exemption by exempting the assessed value between $50,000 and $75,000. 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 cap value can be transferred.
If the new homestead has a lower just value, the percentage of the accumulated benefit may be transferred to the new homestead. Please note that portability applies for 2008 only if you had homestead exemption in 2007 and will be moving to a new homestead for 2008. (In future years, you will be able to "port" your Cap with you for up to 2 years after moving from your original Homestead) This provision applies to all taxes, including school taxes.
Click on this link for an example of portability.
Click on this link to learn about the portability calculator.
For property owners who have the homestead exemption and the Save Our Homes cap, and who do not give up their homestead, the exemption and cap status remain unchanged.
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 properties will be reassessed at just value when they are 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 2009. This provision does not apply to school taxes.
If you have further questions, please call our office at 727-464-3207.