Realty Blog

Lawmakers sent to the voters Monday a new property tax plan that doubles the homestead exemption, allows Save Our Homes portability and cuts the average property tax by $240.

The changes, which include several tax beaks for businesses, will go to voters on Jan. 29th, the same day as the presidential primary. It will take a 60 percent approval vote for the tax changes to become law.

After months of wrangling, passage of the bill was a political victory for Gov. Charlie Crist, who campaigned on reforming property taxes and made it a priority of his administration.

The constitutional amendment, approved 35-4 in the Senate and 97-18 in the House, would cut $12.4 billion in property taxes over the next five years. The plan would be paired with a four-year, $15 billion cut that the legislature forced on local governments in the spring.

The tax changes include:

1) Doubling the $25,000 homestead exemption for local government property tax bills. Gives homesteaders an additional $25,000 exemption on the value of the property between $50,000 and $75,000 but only on the non-schools portion of the property taxes. Homesteaders assessed at $75,000 or more: $238. Homesteaders assessed between $50,000 and $75,000: less than $238. Homesteaders assessed at $50,000 or less: zero.

2) Letting homestead owners carry up to $500,000 in Save Our Homes benefits to a new home. 100 percent if buying a home more expensive; less if buying a less expensive home. Homeowners transferring the full $500,000 in value would save about $8,500, with smaller transfers providing proportionately less.

3) Capping annual assessments of businesses and second homes at 10 percent a year for local government tax bills. Property owners would benefit in years when the market value increases more than 10 percent. This cap would expire after 10 years unless reauthorized by voters in 2018.

4) Giving business owners a $25,000 exemption on their tangible personal property such as computers, furniture and other equipment. Business owners will save as much as $425, for those with at least $25,000 in personal property.

Not everyone is happy.

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