FLORIDA PROPERTY TAX REFORM:How Does It Affect You

On October 30, 2007 the Florida Legislature meeting in special session, approved a package of property tax reform proposals meant to provide relief to homestead-exempted homeowners, owners of second-homes, rental property owners and businesses.
Four major reforms are proposed:
1. EXPANDED HOMESTEAD EXEMPTION: Increase the cur-rent $25,000 Homestead Exemption by an additional$25,000 except on school board taxes.
2. PORTABILITY: Allow homeowners to transfer up to$500,000 of their Save Our Homes Assessment Limitation benefit to the new homestead.
3. CAP ON NON-HOMESTEAD PROPERTY: The assessed value for all other properties without a homestead exemption will be limited to a maximum 10% increase in a year.
4. TANGIBLE PERSONAL PROPERTY EXEMPTION: Businesses will be eligible for a $25,000 exemption on equipment such as computers, office furniture and fixtures. On January 29, 2008, Florida voters will have the opportunity to approve or reject this property tax reform package. The measure will pass if at least 60% of voters approve it.

Will voters have the ability to approve some provisions and reject others? No. Voters will have to decide if they want to pass the entire bill or not.
Will I have to apply for the increased homestead exemption? No. If voters approve the amendment and you already have a homestead exemption, you will not need to file a new application. The Property Appraisal Department will automatically increase your 2008 homestead exemption to $50,000. New homeowners must file a first time Homestead Exemption application in order to receive the $50,000 homestead exemption.
Will the qualifications for homestead exemption change under this bill? No. Minimum qualifications include ownership of the home and residence there as of January 1. You must file an application by March 1. For information on qualifications and how to apply for the Homestead Exemption, as well as for other property tax exemptions, please contact your local county property tax appraiser.
What is “portability”? Currently, property owners with a homestead exemption receive a benefit known as Amendment 10 or Save Our Homes cap. This Save Our Homes benefit works by limiting the increase of the assessed value of a home to a maximum of 3%regardless of any increase in market value. However, undercurrent law, if the homeowner moves or sells the property, this limitation is removed. If the proposed reform package is passed by voters, home owners will be allowed to transfer this benefit to the next homestead property. This is called portability or a portable cap.
If the proposal passes, when is the first year that I can transfer my Save Our Homes benefit? Qualified applicants will be able to transfer (or port) the Save Our Homes benefit beginning in 2008.
I plan to sell my existing home and buy a new one. How can I calculate the Save Our Homes benefit that I'll be able to transfer? There are two ways to calculate the amount of Save Our Homes benefit, depending on whether you buy a home that is less expensive or more expensive than your current homestead exempted property.
IF YOU'RE BUYING A MORE EXPENSIVE HOME: Calculate the difference between the market and assessed values of your existing home. You'll be able to port (or transfer) that amount, up to $500,000, to the next property.
IF YOU'RE BUYING A LESS EXPENSIVE HOME: In this situation you'll be able to transfer only a portion of this benefit. How much you can transfer will be proportional to the extent to which you're buying down.
My brother and I own an equal share in a home we bought a few years ago and we both have the homestead exemption. If he moves and purchases another home, does that affect my Save Our Homes limitation benefit? No. The Save Our Homes benefit remains with the original property. In order to transfer this benefit, the original Homestead Exemption would have to be abandoned by all parties.
Can I take my Save Our Homes benefit outside of the county I currently live in? Yes. The reforms have been packaged as an amendment to the Florida constitution and will therefore be applicable any where within the state.
What benefits are there for first time homebuyers? The reform package contains no specific proposals to benefit first time home buyers. However, first time home buyers who qualify will benefit from the increased $50,000 Homestead Exemption.