Florida Property Tax Reform

The Florida Property Tax Reform is not what a lot of us hoped for, but it’s better than nothing. January 29th, 2008 is the date when voters will head to the polls to have the opportunity to reduce the property tax bill for homeowners in Florida.

The proposed reform is as follows:

• Ensuring Save Our Homes portability, up to $500,000
• Doubling the $25,000 homestead exemption
• Tangible personal property exemption of $25,000
• 10% cap on assessments for non-homestead property

The argument against the reform is that non-homesteaded property owners will not get much of a “reform”. Personally, I think a 10% cap is too high, but what do I know about politics? Our Commercial Property Customers are getting hit very hard with property tax increases and the 10% cap will not be any relief.

Comparing the first very confusing reform, at least we are seeing a change here. A lot of Floridians were counting on tax portability and it’s a least the single most important part of this reform (in my humble opinion).

Tax Portability would allow owners of homesteaded properties to transfer up to $500,000 in accumulated benefits to a new home retroactive to January 1, 2007. When buying “up”, simply take the difference between assessed and just (market) values and subtract from new just value. When buying “down”, take the amount equal to the ratio of assessed to just value to the next home.

Florida has been playing around with a property tax reform for way too long and we have not seen ANYTHING happen. I hope this will be the first step of many to come – like property tax benefits for seniors and new home owners.

Save the date: January 29th, 2008