Florida Proposed Property Tax Changes
Your probably wondering with all the talk and media campaigns on the proposed tax reform, how or does it contain anything that will help commercial properties? I hope your sitting down when you read this because it is shocker. The legislature is actually proposing something that will help commercial properties.Granted they are not sweeping changes, but every little bit helps.
On January 29th, voters will have the opportunity to vote for property tax reform - otherwise known as the "super homestead exemption" - but does the proposal benefit commercial properties?
"Benefits for Commercial Properties"
The most important benefit commercial owners will get is from the "growth in per capita Florida personal income" cap. This means that for the first time in Florida's history, property taxes for all properties cannot be increased by more than the annual increase of Florida's personal income, which has been 4% traditionally. At last, commercial property owners will know the maximum increase for future property taxes and commercial Realtors® will be able to provide more accurate income and expense analysis and projections to their clients.
Should you vote "YES" in January? - If you have an interest in commercial properties you should vote "yes" for the constitutional amendment because incorporated into the "super homestead exemption" are the following benefits for commercial properties:
It would begin to "unwind" the disparity between residential homestead and commercial properties, created by "Save our Homes".
It includes a personal property tax exemption up to $25,000 on business equipment, including shelving, computers, fax machines, etc., which is a huge savings for small business owners. Florida Association of Realtors® website states, "Sources estimate that 1 million of Florida's 1.3 million businesses will be completely exempt from this local tax. While the annual dollar savings average $500 per year for each business, the exemption also eliminates the annual filing requirement for those exempt."
It also grants authority to the legislature to reduce the taxable value of working waterfront property and affordable housing properties by allowing assessments based on a classified use. By grouping these properties into a different class structure, it could save owners thousands of dollars.