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FLORIDA, What is Amendment 4?

By
Real Estate Broker/Owner with Antonelli Realty 3137972

Amendment 4 is a constitutional amendment on Florida’s ballot this year. This proposal will lower property taxes for new homebuyers and spur much-needed economic growth in the housing market by offering a healthy new exemption for first-time homebuyers.

Amendment 4 will also protect working families, small businesses and homeowners from unfair and unexpected tax increases by helping to stop “recapture,” a tax gimmick that increases property taxes even when property values decline.

Finally, Amendment 4 will lower assessment increases on non-homestead properties from a burdensome 10 percent to a more reasonable 5 percent.

Bottom Line

  • Amendment 4 creates an additional homestead exemption for first-time homebuyers for 5 years.
  • Amendment 4 protects Floridians from increased property taxes when their property values have declined.
  • Amendment 4 lowers the maximum yearly assessment increase on non-homestead properties from 10 percent to 5 percent.

 

Potential Questions

Q: Does this new homestead exemption replace the exemption in current law?
A: No. The new homestead exemption in Amendment 4 is applied in addition to your current homestead exemption.

Q: Won’t creating an additional homestead exemption affect the funding of police officers and firefighters?
A: Amendment 4 is not retroactive and does nothing to affect the current budgets of local governments.

Q: Does Amendment 4 change or reduce “Save Our Homes”, which caps assessment increases at 3% per year for homestead property, at all?
A: No.

Q: If local governments are not able to raise the assessed value of a property that has gone down in market value, won’t they just raise millage rates?
A: It is the local government’s decision whether to raise taxes on Florida homeowners or not. Amendment 4 simply gives the Legislature the authority to protect homeowners from burdensome, unfair tax increases if the value of their home goes down.

Q: Exactly how much is this new homestead exemption?
A: The additional homestead exemption that Amendment 4 creates is equal to half of the home’s value, up to the median home value in the county.

Comments (2)

Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team
Hi Paul, great post and very timely with election Tuesday!
Nov 03, 2012 11:08 PM
Fred Hernden, CMI
Superior Home Inspections - Greater Albuquerque Area - Albuquerque, NM
Albuquerque area Master Inspector

Good information Paul. The thing I fear is that people go into the booth not understanding all the amendments and just clicking yes or no, the same goes for some of the lesser known candidates like Judges, School District officials, etc.

Nov 03, 2012 11:26 PM