I appreciate you taking the time to contact me regarding the rising cost of property taxes in our state. The legislature has just completed the final version of legislation that, if the courts approve, will be a Constitutional Amendment on the January 29th ballot. There are five parts to this legislation which are as follows:
- Portability - when a homeowner moves into a more valuable home, the entire savings they receive under Save Our Homes is transferred to their new home. If the new home is less valuable, the transferred savings will be proportional to the value of the new home.
2. Double Homestead Exemption - an additional $25,000 homestead exemption is provided for the value of homestead property above $50,000. This exemption does not apply to school taxes
3. Tangible Personal Property Tax Exemption - business owners and mobile home owners may claim a $25,000 exemption from ad valorem taxes on tangible personal property taxes.
4. Fiscally Constrained Counties - the state will provide funding to offset the reduction in revenues from property taxes for those counties which have proven to be fiscally constrained. Counties will be required to submit documentation to support their requests for additional funds.
5. Assessment Cap for Non-Homestead Property - does not take affect until the 2009 tax roll if passed January 29, 2008. Does not apply to school taxes. Remains with the property for business properties and housing with ten units or more until the sale of the property.
Although I am pleased that portability has been included in this legislation, I believe it will be necessary to do much more to address the increasing property tax problem in our state.
Senator Evelyn Lynn