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Property Tax Amendment Update

Florida voters approved Property Tax Reform via Amendment 1 on January 29, 2008. The Constitutional Amendment provides Property Tax exemptions and assessment limitations on homesteaded and non-homesteaded property.

The following components of the amendment are effective January 1, 2008:

• Double Homestead - additional $25,000 homestead exemption for the assessed value between $50,000 and $75,000 (school taxes are exempt).
• Portability - homeowners are able to transfer accrued Save Our Homes benefit (up to $500,000) toward the purchase of a new home within 2 years of giving up their previous homestead.
• Tangible Personal Property - businesses qualify for a $25,000 exemption on each Tangible Personal Property return.

Beginning January 1, 2009, non-homestead property will have a 10% assessment cap (similar to Save Our Homes limitation), however this exemption does not apply to school taxes. The 10% cap will expire after 10 years, unless re-approved by the voters.

Property owners can obtain an estimate of their tax savings by visiting the Property Appraiser’s website (www.pbcgov.com/papa) and using the additional homestead and portability calculator.

The Department of Revenue has been working on emergency rules to implement the Constitutional Amendment and has released the following information:

The additional $25,000 homestead exemption will be granted to all property owners qualifying for the homestead exemption. No further application will be necessary for those currently receiving the homestead exemption.

• Portability application forms were released on January 30, 2008 from the Florida Department of Revenue (http://dor.myflorida.com/dor/property/sb4d.html). Property owners will apply for the transfer at the same time of application for the homestead exemption on the new home. The application deadline for a homestead exemption is March 1 of the year for which an owner is claiming homestead. Please visit the Property Appraiser’s website at www.pbcgov.com/papa for additional information on how to apply.
• Tangible Personal Property Tax Returns will serve as an application for the $25,000 exemption. No separate application will be required.