Homeowners in Florida may see their property taxes go down due to a new homestead exemption bill, up for approval by voters in November. NBC6’s Steve Litz reports
On Nov. 5, Florida residents won’t just be voting for president. They will also be deciding whether to adjust the homestead property tax exemption annually for inflation–along with five other amendments.
The homestead exemption is a benefit currently enjoyed by approximately 450,000 families in Miami-Dade County. It reduces the amount of taxes that homeowners must pay, granting a tax exemption of up to $50,000 on the taxable value of their properties.
So what change would Amendment 5 make to this exemption? We break it down here.
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What is it?
Amendment 5 is a proposal that seeks to adjust the homestead exemption annually for inflation.
In Florida now, homeowners are permitted to reduce by $50,000 the assessed value of their home, which in turn reduces the property tax burden. For example, the owner of a $300,000 home would pay taxes on $250,000.
That $50,000 is divided into two halves, one that applies to taxes that help pay for school districts and the other that applies to taxes that do not.
Amendment 5 would increase the $25,000 exemption that applies to non-school taxes consistent with the rate of inflation.
So if the consumer price index is up 4%, homeowners would see a similar increase in their homestead exemption, further reducing their tax burden.
The text you will see on the ballot reads: "Proposing an amendment to the State Constitution to require an annual adjustment for inflation to the value of current or future homestead exemptions that apply solely to levies other than school district levies and for which every person who has legal or equitable title to real estate and maintains thereon the permanent residence of the owner, or another person legally or naturally dependent upon the owner is eligible. This amendment takes effect January 1, 2025."
A "yes" vote is a vote in favor of adjusting the exemption annually. A "no" vote is a vote against this.
Impacts
This change, if approved, could represent significant economic relief for thousands of families in Miami-Dade who qualify for the exemption.
John White, a homeowner with a pulse on South Florida's real estate market, said that's an incentive.
"If a tax comes in, chances are it does not go down, it stays there, or it goes up, so anytime you hear about an initiative or success in getting taxes reduced on any level is great and incentivizes people to come and be property owners in Florida," White said.
The downside is that municipalities, typically counties, could see a reduction in revenues, raising concerns about maintaining county services like police, fire and libraries.
Also, renters — like people in apartments — would not enjoy a tax cut.
"I see this as less of a tax cut and more of a tax shift where folks that are not property owners would end up having to make up the difference," Orlando area state Rep. Anna Eskamani, who is a renter, told the Florida Phoenix.
Should voters approve, the state has set aside funds for mostly rural counties that would see a substantial reduction in revenues.
How many votes are needed for Amendment 3 to pass?
At least 60 percent of voters must vote "yes" for Amendment 5 to pass.
