How does the Passage of Amendment 1 affect me?
The recent passage of Amendment One provides the following three benefits to the 2008 Tax Year:
1. Creates an automatic additional homestead exemption worth $25,000, applied to the homestead property’s value over $50,000. (All existing exemptions already included on your property, i.e., seniors (if income limitations have been met), widows, veterans, etc. will remain the same with no changes.)
This exemption does not apply to school tax levies which represent approximately one-half of your property taxes.
2. Allows portability of accumulated Save Our Homes (SOH) savings benefits for homeowners who move from one homestead to another with the following guidelines:
- Homeowners may transfer their SOH benefit from their most recent homestead to a new homestead anywhere in Florida by the second January 1st following the sale of their former homestead. (For example: Those who sold their homes in 2007 can transfer their SOH savings benefit to a new homestead if they establish the new homestead by January 1, 2009.)
- If “upsizing” to a home of equal or greater just value, the homestead owner can transfer 100% of the SOH savings benefit to the new homestead, up to $500,000 transferred benefit.
- If “downsizing” to a home with a lower just value, the homestead owner can transfer a SOH savings benefit that protects the same percentage of values as it did the former homestead, up to a $500,000 benefit.
3. Creates a new Tangible Personal Property Exemption of $25,000.
- Your 2008 Tangible Return serves as an application and must be filed in order to qualify for this new exemption.
In 2009 the Amendment provides an assessment growth limitation of 10% for all non-homestead real properties (such as investors, commercial properties, second home owners, etc.). The Assessment growth limitation would “cap” the increase at 10%.
- This assessment limitation does not apply to school tax levies.
- This assessment limitation will expire in 10 years. At that time, voters will decide whether to reauthorize it.
- Residential properties of nine units or less will surrender accumulated protections at change of ownership or control, as defined by general law.
- For all other properties (i.e., residential properties of ten or more units and business properties), the Legislature must define by general law how the property will surrender protections when there is a “qualifying improvement” to the property. The Legislature may define by general law how the property will surrender accumulated protections at a change of ownership or control.