In early June during a mandated Special Session both houses of the Florida State Legislature overwhelmingly passed short term property tax relief for 2007 and an amendment for long term relief to be voted on in January 2008 at the same time as the Presidential Primary.
The bill offers immediate short term property tax relief by rolling back property taxes to 2006 levels and then imposing a property tax reduction of up to nine percent based on the increased revenue counties collected the past several years. In short, the Florida counties that had the greatest increase in tax revenue have to cut back the most. Information regarding this will be in another blog shortly.
In Indian River County, one of the counties I work, the estimated immediate reduction would be five percent. In St. Lucie County the maximum reduction of nine percent would be mandated. Port St. Lucie, the largest city in St. Lucie County, was one of the fastest growing cities in the country.
The second and major portion of the tax reform legislation would be voted on by taxpayers in January 2008 during the Presidential primary. The new "Super Exemption" would replace the current "Save our Homes" exemption. However, taxpayers with property currently homesteaded would be able to choose between keeping their "Save Our Homes" exemption or switching to the new "Super Exemption."
In a nutshell the "Super Exemption" would give homestead property an exemption of 75 percent of the assessed value of property up to $200,000 and 15% on assessed value between $200,000 and $500,000.
A property assessed at $200,000 would receive an exemption of $150,000 and now be taxed on an assessed value of $50,000.
A property assessed at $300,000 would receive a $150,000 (75%) exemption on the first $200,000 and $15,000 (15%) on the next $100,000. The total exemption would be $165,000 and the new taxed assessed value would be $135,000.
A property valued at $500,000 or above would receive the maximum exemption of $195,000. The new assessed value would be $305,000.
The “Super Exemption” portion of the tax bill will require a constitutional amendment with a 60% majority to pass. Early indications from internet polls show a very strong favorable response.
The proposed amendment is not perfect. The format is best part of the bill. The amounts could be adjusted so that the investor could benefit more. However, it's a vast improvement and I strongly support.
Randy Chapman
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