Is Property Tax Reform on the Way?

Is property tax relief on the way for Florida homeowners? Time will tell.

Yesterday, the Florida Legislature passed a property tax reform proposed amendment that will appear on the ballot in January 2008. The amendment offers moderate relief for homeowners and slight relief for commercial property. To become law, the proposal must still receive 60 percent of the votes in the Jan. 29, 2008, election.

While the plan has many pros and cons there are provisions to provide property tax relief to not only primary residences, but also second home owners and business owners. This is something that our seasonal and vacation population has been needing for many years.

Here's a summary of the plan's provisions:

• Portability of the Save Our Homes Exemption Dollars: Homesteaders could take up to $500,000 of Save Our Homes protections to a new home purchase. Those who downsize would take a pro-rated portion of their tax protections. This applies to all property taxes. This will allow people who live in Homesteaded properties the ability to move and no longer be trapped in their current homes due to the fear of tax reassessment.

• Double The Homestead Exemption: Homesteaders get a second $25,000 exemption on the assessed value on the value of their homes over $50,000 giving homesteaded property owners a $50,000 exemption on their property taxes. This measure doesn’t apply to school taxes.

• Tangible Personal Property Tax Exemption: Businesses get a break on the taxes they pay on equipment. This would apply to all property taxes.

• Assessment Cap for Non-Homestead Property: Property assessments could increase no more than 10 percent each year on non-homestead property. This is a tremendous victory for second home owners, real estate investors and business owners. While it is 7 percent higher than a Non-Homestead Property this is the first benefit of its kind in Florida history.

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Please contact me, Dan Forbes, a call if you have questions about or our Bradenton, Florida real estate market at 941-746-0505; toll free 877-646-8326. Visit my web site at BradentonFloridaRealEstate.com and my blog The Real Estate ZOO.