Florida “Super Homestead” Exemption

Published by admin | Filed under Buyer / Seller Tips, Market Trends, Real Estate, Shout Outs

Florida Legislatures have ended a nine day special session aimed at revamping and changing the current tax laws for Florida residents. In merely three days, Legislatures managed to pass three special bills concentrated on making taxes less straining for homeowners in Florida.

The three bills are aimed at cutting taxes for Floridians who own homes. According to the bills passed, the average Florida homeowner will see a 7% tax cut on their personal property tax bill as early as next year. The savings may add up over time thanks to a cap on future property tax growth that was also passed. According to the cap, Floridians will see a limited increase on all personal property taxes, excluding school taxes, limited to the growth of new construction and per capita income.

While these bills comprise a definitive change for the better compared to the current tax laws, an amendment to the constitution regarding the current homestead exemption is even more exciting and money saving. According to the amendment, which will be presented to Florida voters on January 28, 2009. The amendment creates a new homestead exemption ranging from $50,000 to $195,000. Once passed, homeowners will be able to decide between the new homestead exemption and the current Save Our Homes assessment cap. Residents who move after the new amendment is passed will fall under the new cap as will residents of new construction homes.

The new homestead amendment also addresses tax relief that is long overdue for property owners. The new amendment is written to provide $25,000 in exemption on tangible personal property. This exemption equates to around $500 in savings for Florida residents.

Florida residents have waited for a long time to see revisions on current tax and property laws with the resident and savings in mind. While this group of ideas is not the perfect solution, these bills and amendments are, by far, a step closer to substantial tax relief for the Florida resident.

Thanks to the patience and perseverance of Florida residents, the Save Our Home assessment cap, which has been viewed as the weakest link in Florida property tax law, will be phased out over time. The elimination of Save Our Home is being slated as the true beginning to property tax reform and eventual savings for Florida residents.

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January 12th, 2008