With campaigning ramping up for the property tax amendment, we're taking a closer look at what it could mean for everyone in Florida.
News 13's Scott Harris explains what Amendment 1 is all about and what it will do, if approved.
One state lawmaker, who was deeply involved in the whole thing, told News 13 the simplest way to describe it is “Portability, and some other stuff."
Politically, he's probably right on target. Since the ballot summary itself runs to over 500 words, we’re going to try some middle ground here.
There are four main elements – Homestead Exemption Increase, Portability, Exemption of Tangible Personal Property Tax, and Non-Homestead Property
We will save portability for Thursday, and cover the other stuff now.
The first item deals with doubling the current $25,000 homestead exemption, in a matter of speaking.
It’s true primary homeowners will get to deduct an additional $25,000 from their taxes if their homes are valued at $75,000 or more. However, this does not apply to school district taxes.
The legislature has estimated this will save the average Florida resident about $240 in yearly property tax, which equates to approximately $20 a month.
The third item is a $25,000 exemption of the tangible personal property tax, which despite how it sounds, is a tax on businesses.
The big benefit here is not so much saving a lot of money as much as it is, for many businesses, not having to file the paperwork each year.
Number four is aimed at non-homestead properties, which are business and commercial properties, second and vacation homes, etc. It's a 10 percent annual cap on taxable value increases, which is similar to the 3 percent annual cap on homestead property under Save Our Homes.
For example, say you purchase a $500,000 property next year. Assume the market value increases less than 10 percent through 2013. The assessed value is the same as the market value. (See the slideshow for graph).
But there’s a big jump in 2014. The taxable value can only go up 10 percent.
The lines can converge in later years, as the market value slows down. However, the taxable value can still go up 10 percent, until they are equal again.
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