VOTER APPROVED CONSTITUTIONAL AMENDMENT 1

On January 29th, 2008 the Citizens of Florida passed a Tax Reform Package as an amendment to the State Constitution. The Amendment impacts:
 
Homestead Property
Provides Portability on Homestead Property
Provides up to an additional $25,000 Exemption on Homestead Property

Non-Homestead Real Property
Provides Cap Protection for Non-Homestead Real Property

Tangible Personal Property
Provides up to a $25,000 Tangible Personal Property Exemption

HOMESTEAD EXEMPTION HOLDERS

There will be no change in the current SAVE OUR HOMES Cap protection.


Portability
Allows homeowner(s) to transfer their current SAVE OUR HOMES Cap protection to a new homestead anywhere within the State of Florida.
  • Must establish a new Homestead Exemption as of January 1 of the qualifying tax year; and have received a Homestead Exemption in either of the two immediately preceding tax years.
  • Allows for Upsizing or Downsizing but has a maximum transfer amount of $500,000.
  • Upsizing or homesteading into a house with a market value that is greater than or equal to your existing homestead allows for the transfer of 100% of your Cap protection (up to the $500,000 maximum deduction).
  • Downsizing or homesteading into a house with a market value that is less than your existing homestead allows for the transfer of the Cap protection percentage equal to that of your existing homestead (up to the $500,000 maximum deduction).

Click here to see examples.          Click here for Portability Calculator.          Homestead Portability (DR-501T) FORM.


Additional Homestead Exemption of up to $25,000
This additional exemption applies only if the assessed value of the property exceeds $50,000, and then, only to the amount by which the value exceeds $50,000, up to a total additional exemption of $25,000 (that is, exempting the assessed value between $50,000 and $75,000).

  • If your assessed value is $50,000 or less there is no additional exemption.
  • Currently, the first $25,000 of the assessed value of homestead property is exempt from tax levies by all taxing authorities. The additional exemption of up to $25,000 will apply to all levies except those by school districts.

NON-HOMESTEAD PROPERTY

All non-homestead real property with exception of Agricultural land, land producing high water recharge to Florida's aquifers, or land used/classified exclusively for noncommercial recreational purposes.
  • 2008 will establish the Base Year for which your property will be eligible for Cap Protection.
  • Beginning in 2009 the Cap will limit increases in Assessed Value to 10% from the prior year.
  • The Capped portion (Assessed Value) only applies to Non-School District Levies. School District Levies will be applied to the total Market Value.
  • To qualify you must have ownership (legal title) as of January 1st. The year in which you qualify under these terms will be the base year for future Cap protection.

BUSINESS OWNERS

Beginning in 2008 there will be a $25,000 exemption on Tangible Personal Property, you must file a return by April 1st to qualify for the exemption.
  • Provides for an exemption of up to $25,000 for each tangible personal property tax return.
  • An initial tax return must be filed even if the value is less than the $25,000 exemption.
  • After the initial filing, future consecutive filings are waived as long as the value does not exceed $25,000.
Note: A taxpayer that fails to file a return in any year where the value exceeds $25,000 is subject to the full amount of taxes due without any exemption and with penalty.