Florida Property Tax Reform Measures

FLORIDA PROPERTY TAX REFORM PASSED ON JANUARY 29, 2008

An amendment to the Florida Constitution was recently passed which will bring about the following changes to the Florida property tax system.

• $50,000 HOMESTEAD EXEMPTION: Properties which already have a Homestead Exemption will be automatically upgraded to the new $50,000 benefit (it was $25,000 in the past). New homeowners still must file a first time application.
• PORTABILITY: Property owners with a Homestead Exemption currently receive a benefit known as a "Save our Homes" cap. This benefit works by limiting the increase of the assessed value of the home to a maximum of 3% regardless of the increase in property values. Under the new law, homeowners will be able to transfer this benefit to the next homesteaded property. This is what is called portability. Applicants can transfer this Save our Homes benefit up to $500,000, whether buying a more or less expensive home. CLICK HERE FOR THE HOMESTEAD PORTABILITY APPLICATION.
  
• CAP ON NON-HOMESTEADED PROPERTY: Starting in 2009, non-homesteaded properties will be eligible for a 10% cap to those who apply.

I am very excited about these changes, as hopefully this will stimulate the market and help people that have felt "trapped" in their homes because they would not be able to afford the property taxes on a new home, to reap the benefit of continued lower taxes.