Orlando Real Estate News

Early this summer, lawmakers passed landmark legislation to create the largest tax cut in Florida’s history. What passed was a two part process that put the people in control:

Step one was a law that required local governments to roll-back taxes this year, and then to grow at a responsible rate in the future.
Step two is in the hands of the People of Florida.
On January 29, the people will have the power to cut their taxes in a historic way by passing the constitutional amendment.
Floridians have the power and choice to lower their tax bill. They can decide what is best for their pocketbook on January 29, 2008.
 
Floridians need property tax relief
With the passage of Amendment 1, citizens will gain the freedom to purchase a new home without huge tax penalties, and rental home owners, second home owners and businesses will benefit by limited future tax increases.

The amendment contains two provisions that Governor Crist has long advocated: doubling the homestead exemption and portability of the Save Our Homes tax benefit.

Double the homestead exemption for almost all homeowners, providing an average savings of about $240 annually. The new exemption applies fully to homesteads valued over $75,000 and partially for homesteads valued over $50,000. This new exemption does not apply to school taxes.
Allow portability: The Governor has heard from many constituents that they feel trapped in their homes. Portability will allow homeowners to transfer their Save Our Homes tax benefits from their old home to a newly purchased home. Portability applies to homes purchased in 2007 and later, and the benefit is capped at $500,000.

If you upsize, you will be able to apply the dollar value of your Save Our Homes tax benefit to your new home.

For example:

Homesteader owns home valued at $300,000 and buys a new home valued at $400,000
If you downsize, you will be able to apply the percentage of the Save Our Homes benefit to your new home.

For example:

Homesteader owns home valued at $300,000 and buys a new home valued at $150,000
Provide an assessment cap of 10% for all properties, not previously capped: While homestead properties are already capped at 3%, now all other properties, including rental properties, second homes, and business properties, will be protected from huge increases in valuation. This new exemption does not apply to school taxes.
Create a new $25,000 exemption for business property, including office furniture, computers, machinery and equipment.

Estimates provided by the Legislature show that Florida homeowners and businesses will save over $12 billion in property taxes over the next five years.