Isabella Carter
Florida Amendment 5, also known as the Annual Inflation Adjustment for Homestead Property Tax Exemption Value Amendment, was on the ballot in Florida as a legislatively referred constitutional amendment on November 5, 2024. The amendment extends the period during which a person may transfer their Save Our Homes benefits to a new homestead property from two years to three years. It also provides an annual inflation adjustment for the value of the homestead property tax exemption. While some editorial boards recommend voting no on the amendment, citing the potential unintended consequences for local governments and businesses, others recommend voting yes, highlighting the benefit for homeowners, especially those with lower incomes, and the reasonable relief it could provide given the state's housing affordability crisis.
| Characteristics | Values |
|---|---|
| Name | Limitation on Homestead Assessments |
| Description | Provides inflation adjustment to property tax exemption |
| Benefit | Allows three years instead of the present two for people to transfer their accrued "Save Our Homes" benefit from an old home to a new one |
| Support | Tampa Bay Times Editorial Board, Miami Herald Editorial Board, Pinellas County Property Appraiser Mike Twitty, Orlando Sentinel, South Florida Sun Sentinel Editorial Board |
| Opposition | TCPalm Editorial Board, Palm Beach Post Editorial Board |
| Result | Approved |
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What You'll Learn
Extends the transfer of Save Our Homes benefits from two to three years
The "Save Our Homes" benefit is applied to residences that are owner-occupied and qualify for homestead exemption. It puts a ceiling on how much the county property appraiser can increase the assessed value on which property taxes are levied. In 2020, Florida voters approved Amendment 5, which extended the period during which a person may transfer "Save Our Homes" benefits to a new homestead property from two years to three years.
This change was supported by the Pinellas County Property Appraiser Mike Twitty, who pointed out that the two-year window could be too narrow in some cases. For example, a Tampa couple sold their home in 2013, expecting to build and occupy a new one by January 1, 2015. When the new home wasn't ready in time, they pitched a tent in the front yard and argued that they had met the deadline. However, the Hillsborough County appraiser, the Second District Court of Appeal, and the Florida Supreme Court all disagreed, resulting in a $5,200 increase in their tax bill.
The extension of the transfer period for "Save Our Homes" benefits provides more flexibility for homeowners who may encounter unexpected delays or changes in their plans. It helps protect homeowners from unexpected increases in their tax bills and gives them greater control over their financial obligations.
While some critics argue that Amendment 5 could lead to local governments raising millage rates to compensate for potential revenue shortfalls, the amendment ultimately provides homeowners with greater stability and predictability in their property tax obligations, especially in cases where construction or other factors may cause delays in occupying a new home.
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Provides inflation adjustment to property tax exemption
Florida Amendment 5, the Annual Inflation Adjustment for Homestead Property Tax Exemption Value Amendment, was on the ballot in Florida as a legislatively referred constitutional amendment on November 5, 2024. It was approved with 60% of the vote.
The amendment provides an annual inflation adjustment for the value of the homestead property tax exemption. In Florida, property tax (millage) rates are set by counties, school districts, cities, and special districts. Homes are assessed at just value (market value), minus the homestead exemption. The homestead exemption reduces the taxable value of a property. Every primary residence is eligible for a $25,000 homestead exemption, which exempts that amount from all taxes. Another $25,000 exemption is applied to a homestead's value between $50,000 and $75,000, which is exempt from all taxes except school district taxes.
The amendment allows for an annual adjustment for inflation to the value of current or future homestead exemptions that apply solely to levies other than school district levies. This means that the homestead exemption would increase with inflation, reducing the taxable value of a property. This could provide a greater benefit to Florida homeowners, especially given the state's housing affordability crisis.
However, some opponents of the amendment argue that it creates the deceptive impression that lawmakers are giving homeowners a bigger tax break. They suggest that it could instead result in local governments raising millage rates to make up for revenue shortfalls, impacting businesses and those without homesteads.
Overall, Amendment 5 aimed to provide an annual inflation adjustment to the property tax exemption, which could offer a greater tax benefit to Florida homeowners.
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Benefits lower-income homeowners
Florida Amendment 5, the Annual Inflation Adjustment for Homestead Property Tax Exemption Value Amendment, was on the ballot in Florida as a legislatively referred constitutional amendment on November 5, 2024. The amendment aimed to provide an annual inflation adjustment for the value of the homestead property tax exemption. This means that the amount of tax a homeowner pays is reduced, as the exemption is subtracted from the property's assessed value.
The benefits of Amendment 5 for lower-income homeowners are significant. Firstly, it provides much-needed tax relief for those struggling with Florida's housing affordability crisis. Lower-income homeowners, in particular, would benefit from a larger tax break, helping them manage their finances more effectively.
Secondly, Amendment 5 extends the time period for transferring "Save Our Homes" benefits from an old home to a new one. This is especially beneficial for lower-income individuals, as it gives them more flexibility when moving homes. The previous two-year window was often insufficient, as unexpected delays in construction or other factors could cause homeowners to miss the deadline and lose their accrued benefits. With Amendment 5, the transfer period is extended to three years, providing a crucial safety net for lower-income homeowners.
Additionally, Amendment 5 helps protect lower-income homeowners from potential tax increases. Without this amendment, local governments might be forced to raise millage rates to compensate for revenue shortfalls, which could disproportionately impact those with lower incomes. By supporting Amendment 5, voters can help stabilize tax rates and provide long-term financial security for lower-income homeowners.
In conclusion, Amendment 5 offers substantial advantages for lower-income homeowners in Florida. It provides tax relief, extends benefits transfer periods, and safeguards against potential tax increases. This amendment demonstrates a commitment to supporting those who need it most and ensuring they can maintain their homes without undue financial strain.
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Gives homeowners greater benefit from their homestead tax exemption
Florida Amendment 5, the Annual Inflation Adjustment for Homestead Property Tax Exemption Value Amendment, was on the ballot in Florida as a legislatively referred constitutional amendment on November 5, 2024. It was approved with more than 60% of the vote.
The amendment provides an annual inflation adjustment for the value of the homestead property tax exemption. In Florida, property tax rates are set by counties, school districts, cities, and special districts. Homes are assessed at market value, minus the homestead exemption. The homestead exemption reduces the taxable value of a property. Every primary residence is eligible for a $25,000 homestead exemption, which exempts that amount from all taxes. An additional $25,000 homestead exemption is applied on a homestead's value between $50,000 and $75,000, which is exempt from all taxes except school district taxes.
The amendment gives homeowners greater benefit from their homestead tax exemption by ensuring that the value of the exemption keeps pace with inflation. This means that the exemption will not lose value over time due to inflation, providing a greater benefit to homeowners.
Some supporters of the amendment argue that it gives Florida homeowners the full benefit of a tax break that they have already been promised. While the state constitution provides a homestead exemption for primary residences, reducing the amount of tax a homeowner pays, this exemption can be eroded by inflation over time without an annual adjustment.
Additionally, Amendment 5 extends the period during which a person may transfer their "Save Our Homes" benefits to a new homestead property from two years to three years. This provision can help lower-income homeowners who may face unexpected delays or challenges in building or occupying a new home within the previously allotted two-year window.
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Allows surviving spouses to keep property tax discounts
Florida Amendment 5, the Annual Inflation Adjustment for Homestead Property Tax Exemption Value Amendment, was on the ballot in Florida as a legislatively referred constitutional amendment on November 5, 2024. It was approved with 60% of the vote. The amendment extends the period during which a person may transfer "Save Our Homes" benefits to a new homestead property from two years to three years.
Amendment 5 also allows surviving spouses of veterans with combat-related disabilities to keep the special property tax discounts that Florida awarded them. The widow or widower could sell the home and transfer some or all of their savings to a new home. Remarriage forfeits the benefit. This would particularly benefit widows or widowers who would want to relocate and downsize after the death of their spouse. The Revenue Estimating Conference projects a recurring impact of $1.6 million a year in school taxes beginning in fiscal 2022 and $2.4 million in county, municipal, and special district taxes.
The amendment provides an annual inflation adjustment for the value of the homestead property tax exemption. Property taxes in Florida are set by local governments—cities, counties, school districts, and special taxing districts—to fund their operations. While taxes are levied on a home's assessed value, the state constitution provides a homestead exemption for a permanent residence, which reduces the amount of tax a homeowner pays. Every primary residence is eligible for a $25,000 homestead exemption, which exempts that amount from all taxes. Another $25,000 homestead exemption is applied on a homestead's value between $50,000 and $75,000, which exempts that amount from all taxes except school district taxes.
Supporters of Amendment 5 argue that indexing Florida's homestead exemption to inflation is a common-sense change that would give Florida homeowners the full benefit of a tax break they've been promised. However, critics argue that the amendment creates the deceptive impression that state lawmakers are giving homeowners a bigger tax break. They warn of potential unintended consequences, such as local governments raising millage rates to make up for revenue shortfalls, which could impact businesses and non-homestead properties.
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Frequently asked questions
Amendment 5, the Annual Inflation Adjustment for Homestead Property Tax Exemption Value Amendment, was on the ballot in Florida as a legislatively referred constitutional amendment on November 5, 2024.
Amendment 5 ties part of homestead property exemptions to inflation rates, which could reduce revenue for local governments.
Voting yes on Amendment 5 would give Florida homeowners the full benefit of a tax break they have been promised. It would also give homeowners greater benefit from their homestead tax exemption and provide some relief from the state's housing affordability crisis.
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