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Property Tax Reform

The Florida Legislature recently passed a Property Tax Reform package during its June special session.

The package includes the Senate Joint Resolution (SJR) 4-B, Property Tax Reform, which provides property tax relief through a proposed constitutional amendment; House Bill (HB) 1-B, Property Tax Reduction and Reform, which requires local governments to roll-back rates and limit growth of property taxes; and House Bill (HB) 5-B, Special Election, which provides for a special election to be held January 29, 2008 to allow the electors of the State of Florida to vote on the amendment, SJR 4-B, to the State Constitution.

SJR 4-B, the proposed constitutional amendment, would give tax relief to homeowners via a "super exemption". It allows homesteaded taxpayers to choose whether they want to keep their current Save Our Homes maximum annual increase of 3%, or choose the "super exemption" which increases the homestead exemption through a specific formula, provides a statutory exemption from ad valorem taxes for tangible personal property up to $25,000 and limits the authority of local government, excluding school districts, to increase property taxes.

If approved by voters, this amendment will take effect January 29, 2008 and will be retroactive to January 1, 2008.

HB 1-B, reduces county, city and special district property taxes in fiscal year 2007-08 and limits growth of these taxes in future years to the growth in Florida's economy. Some provisions of this bill took effect upon becoming law, others take effect only if the constitutional amendment is approved by the voters on January 29, 2008.

HB 5-B provides for the special election scheduled to take place January 29, 2008.

The Tax Collector cannot recommend which approach will be the right one for you and your family. However, we will do all we can to ensure you are able to find the information you need to make an educated decision. The following resources are now available:

· The Palm Beach Post offers a tax calculator comparing the two tax options available. The website is: www.palmbeachpost.com.* To use this calculator properly, you will need to determine both the assessed value AND the market value of your property. Those values are available on the Property Appraiser's website at www.pbcgov.com/papa.

· Property Tax Reform package legislation information is available at www.flsenate.gov and www.myfloridahouse.gov.

Special Note: The Tax Collector offers the opportunity to pay your property taxes in four installments. To participate in the installment payment plan for payment of next year's 2008 property taxes:

1. Your estimated property tax must be more than $100.00.
2. Complete the Installment Payment Plan application, which can be downloaded on our website at www.taxcollectorpbc.com.
3. Return the completed application no later than April 30, 2008.
4. The first installment payment must be made in June, 2008.
5. Enrollment in the installment plan is complete when the first payment is received in the Tax Collector's office before June 30, 2008.
6. Once enrolled, participation in the plan is required for that entire tax year.

*The Tax Collector is not responsible for the accuracy of any material published outside this office.