from Florida Realtor Magazine, December 2007 | page 6

‘Portability’ Goes Before Voters

Just hours before the scheduled end of a special session on property tax reform, the Florida Legislature reached agreement on several issues: “portability,” or allowing residents to transfer their Save Our Homes savings when they move; doubling the homestead exemption to $50,000 for most homeowners; tax relief for owners of commercial properties, second/vacation homes and rentals; and a tax break for businesses. The measures go before voters in the form of a ballot referendum Jan. 29.

The tax package is expected to save taxpayers—and cost cities, counties, special districts and school boards—$12 billion in the first four years. Here are the highlights:

• Double the homestead exemption for homes valued at more than $75,000 only (and not for school taxes).

• Allow owners of homestead property to transfer up to $500,000 in Save Our Homes benefits, including school taxes, to a new home.

• Impose a 10 percent assessment cap on non-homestead property for the next 10 years (cap doesn’t apply to school taxes). After 10 years, voters will have the option to restore the 10 percent cap.

• Allow businesses to exempt $25,000 of tangible personal property tax paid on computers and other office equipment.

Details of the package are available on the home page of floridarealtors.org.