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Frequently Asked
Questions

A proposed Constitutional Amendment on Property Tax Reform will be on the Jan. 29, 2008 presidential ballot. There are four components to the proposed amendment, Doubling Homestead Exemption; Portability; Assessment cap on non-homesteaded property; and Tangible Personal Property Exemption.

Q. How do I get the $50,000 homestead exemption?
A.You must be a qualified Florida resident to receive a Homestead Exemption. The proposal relates only to properties with an assessed value greater than $50,000. The original $25,000 exemption will continue to apply to all tax levies. The new homestead exemption will increase with the increase in the assessed value of the property.
If for example the assessed value of your homestead property is $70,000, your total exemption under the proposed constitutional amendment would be $45,000. That leaves you with a taxable value of $25,000. Currently your taxable value would be $45,000. The additional exemption applies to all tax levies except school districts.

Q. What is Portability?
A. Portability relates to Florida’s Save Our Homes 3% cap on your property’s assessed value. Currently, when a Florida resident moves to a new property, they lose their SOH protection. Under the proposed amendment, portability will allow property owners to transfer all or a significant portion of their property tax savings to their new residence. Your new house can be either more or less expensive than your current property. Your new residence does not have to be in the same county. Portability applies to all tax levies, including school districts, anywhere you move in Florida.

Q. Is there a formula to determine how much I can save with portability?
A. Yes, but keep in mind that portability in the proposed amendment applies only to homesteaded property. If the property you are moving to is more expensive, you can transfer up to $500,000 of your actual assessment cap savings to your new property. If the property you are moving to is less expensive, you can transfer a proportional amount of the actual assessment cap savings.
Say for example your current property has a market value of $400,000, and its taxable value is $225,000, after the assessment cap savings and the standard $25,000 homestead exemption are deducted. Let’s say your new property has a market value of $500,000. With portability, the taxable value on your new property would be only $300,000. Without portability, your new property’s taxable value would be $450,000.

Q. Do I have to sell my current homestead property to benefit from portability?
A. No. You can keep your existing property and transfer your cap savings to your new homestead property. Your existing property will lose its homestead status and assessment cap protection.

Q. Do I have to purchase a property to transfer my cap savings?
A. No. If you already own another property and establish a homestead exemption on it, you can transfer your cap savings to your new homestead property. Your existing property will lose its homestead status and cap savings.

Q. What is tangible property?
A. Tangible personal property is the furniture, fixtures and equipment used by a business. Under the proposed constitutional amendment, the first $25,000 in value of furniture, fixtures and equipment used by a business will be exempt from taxation.

Q. What is the 10% cap on non-homestead property?
A. Under the proposed amendment, an assessment cap similar to Save Our Homes will be available to non-homestead properties. The annual assessment cap on these properties, such as second homes and commercial properties, would be 10%.

Q. I care only about one part of the tax reform proposal. Can I vote for that part alone?
A. No, the proposed amendment that you will see on the Jan. 29, 2008 ballot is all-inclusive. There will be one issue on the ballot, known as Amendment 1. If Amendment 1. is approved by at least 60% of the voters who vote on Jan. 29, 2008, it will become part of Florida’s Constitution.

Proposed Constitutional Amendment - Jan. 29, 2008 ballot



 

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