close
close

What you should know about the new property tax exemption bill – NBC 6 South Florida

Homeowners in Florida can expect a reduction in their property taxes after the Republican-led state legislature passed a corresponding bill and had it signed by the governor on Friday.

House Bill 7019 must now be approved by voters in the form of Amendment 5, which will appear on the ballot in November.

In Florida, homeowners are now allowed to reduce the assessed value of their home by $50,000, which in turn reduces the property tax burden. For example, the owner of a $300,000 home would have to pay taxes on $250,000.

John White, a homeowner who knows the South Florida real estate market, said this is an incentive.

“When a tax is introduced, there's a good chance it won't be reduced, it will stay where it is or even increase. So it's always great to hear of an initiative or success to reduce taxes at any level. That's an incentive for people to come to Florida and buy property there,” White said.

Amendment 5 would increase that $50,000 exemption amount in line with the rate of inflation. If the Consumer Price Index increases by 4%, homeowners would see a similar increase in their exemption amount, further reducing their tax burden.

This is the governor and state legislature's approach to inflation and skyrocketing housing costs in Florida.

The downside is that local governments, typically counties, face a drop in revenue, which could raise concerns about maintaining county services such as police, fire departments, and libraries.

In addition, tenants – like homeowners – would not benefit from tax relief.

“I see this less as a tax cut and more as a tax shift where people who are not property owners end up having to make up the difference,” Anna Eskamani, Orlando state representative and renter, told the Florida Phoenix.

If voters approve, the state will have provided funds to predominantly rural districts that would face significant revenue losses.

Anna Harden

Learn More →

Leave a Reply

Your email address will not be published. Required fields are marked *