The Property Tax Relief

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The Property Tax Relief Reform
PlanWorkshopOctober 12, 2007
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(1) ALL ESTIMATES ARE PRELIMINARY. (2) Does not
apply to school levies. (3) Applies to levies of
all local government types.
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Allows Portability of Save Our Homes (SOH)

• Homestead owners with SOH benefits can transfer
  100 of their benefits (up to 1 million) to a
  new homestead IF they upsize to a home with a
  greater or equal just value.
• If downsizing to a home with a lower just
  value, they can transfer an SOH benefit that is
  proportionally the same as that which applied to
  their old homestead.
• However, the difference between the assessed
  value and the just value of the new home is
  capped at 1 million.
• Continued on next slide

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Allows SOH PortabilityContinued

• The new homestead must be established within 2
  years of the sale or abandonment of the old
  homestead in order to transfer SOH protections.
• The transferred SOH protection on the new
  homestead will NOT apply to school tax levies.
• This will end the lock-in effect that has
  prevented growing families from moving into
  larger homes, kept empty-nesters from moving into
  smaller homes, and slowed the overall real estate
  market.

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Increases the Homestead Exemption

• Doubles the existing 25,000 homestead exemption
  to a total of 50,000.
• The new 25,000 exemption applies to the value of
  the homestead between 50,000 and 75,000 to
  alleviate problems for counties and cities with
  low property values.
• The increased exemption does NOT apply to school
  tax levies.
• The original 25,000 exemption still applies to
  school tax levies.
• The average savings from the doubled homestead
  exemption for a homeowner receiving the full
  benefit is about 240 per year.

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Creates a New Protection for First-Time
Homebuyers

• Creates a new, additional homestead exemption for
  first-time homebuyers (i.e., those who have never
  owned a homestead in Florida).
• The exemption is worth 25 of the just value of
  the property when initially purchased.
• However, the exemption is capped at 25 of the
  previous years median just value of homesteads
  in the county.
• The value of the first-time homebuyer exemption
  will phase out on a dollar-for-dollar basis as
  SOH protections grow.
• The increased exemption does NOT apply to school
  tax levies.

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Abolishes Property Taxes for Low-Income Seniors

• To qualify, the homestead owner must be 65 or
  older with a total household income of less than
  23,604, adjusted annually for inflation.
• This exemption DOES apply to school tax levies.

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Creates Incentives for Affordable Housing

• Authorizes property used for affordable housing
  to be assessed at less than fair market value,
  thereby lowering the tax bill for that given
  property.
• Affordable housing rental properties are eligible
  if they are subject to rent restrictions imposed
  by a government agency.
• This assessment limitation does NOT apply to
  school tax levies.

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Creates Tax Protections for Floridas Working
Waterfronts

• Authorizes the Legislature to assess property
  used for working waterfronts at less than fair
  market value, thereby lowering the tax bill.
• This assessment limitation does NOT apply to
  school tax levies.
• Properties eligible to be defined as working
  waterfronts are
• Land used exclusively for commercial fishing
  purposes,
• Land open to the public that is used
  predominantly for water-dependent activities, and
  
• Land used for public access to the water.

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Creates a New Tangible Personal Property Tax
Exemption

• Creates a new Tangible Personal Property Tax
  Exemption of 25,000.
• In a jurisdiction where the aggregate millage
  rate is 18 mills, this would create tax savings
  of 450 and lower the administrative cost of
  filing annual returns.
• This exemption DOES apply to school tax levies.

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Shifts the Burden of Proof for Assessments in
Favor of Taxpayers

• Removes the presumption of correctness that
  property appraisers currently enjoy when
  defending their valuation of a property.
• The presumption of correctness does not apply
  when a propertys assessed just value increases
  more than the average for its class.

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Creates Accountability for All Property
Appraisers

• Requires that all property owners in Florida be
  elected by local voters.
• This will address concerns in those jurisdictions
  where the property appraisers are hired by the
  mayor or commissioners and make sure that the
  property appraisers are accountable to the
  voters.