Politics

What it would do

By JONI JAMES, Times Staff Writer
Published January 28, 2008

For more than two weeks, we've collected questions from readers about Amendment 1. The most frequently asked are answered below. For more information, go to tampabay.com/taxes.

How do I figure out how much Save Our Homes benefit I could take to a new home?

Use our portability calculator, at right.

Does this plan do away with Save Our Homes, or the current $25,000 homestead exemption?

No. Regardless of what happens in the election, homesteaded homeowners still will be protected under the 1992 Save Our Homes. And they still will pay no taxes on the first $25,000 in value of their homes.

Does this plan affect additional homestead exemptions already in place for disabled veterans or low-income seniors? Does it add any additional benefits specifically for such homeowners?

No on both counts.

Do you have to buy a new home to qualify? I already own two properties in Florida and would like to transfer my homestead and Save Our Homes benefit to my second home.

Purchase is not required. Portability would be triggered by establishing a new homestead while giving up another one.

Would a person's "portability" under the new tax proposal be statewide or only in the county where a person is presently residing?

Statewide.

I was a longtime Florida homeowner who moved and established a new homestead before 2008. Would Amendment 1 allow me to transfer the Save Our Homes benefit from my old home?

No. "Portability" would be available only for properties homesteaded for the first time this year. To qualify, homeowners would need to have had their original homestead in 2007 and transfer it to a new property in 2008 or 2009. In future years, homeowners would have two years from the time they give up a homestead to transfer it to a new property.

Will school funding be hurt?

Two of the measure's provisions would not affect property taxes for schools. But two - portability and the new exemption for business property - would cut about $1.55-billion in tax revenue for districts in the first five years. Lawmakers have pledged to make up such lost revenue, but they have yet to say how.

Will police and fire services be cut?

Gov. Charlie Crist has said he thinks local governments can get by without public safety cuts. But dozens of local officials, the state's police chiefs and firefighter association disagree, noting public safety is half of many governments' budgets.

I want tax relief, but this plan doesn't go far enough. Is another option on the horizon?

Maybe, but there's no guarantee. Crist believes this is just another step to property tax changes and that he'll urge lawmakers to make other changes this spring when their regular session starts in March. Lawmakers could always put another amendment on the November ballot. The Taxation and Budget Reform Commission, a citizen panel created under the state Constitution every 20 years, might put some property tax measures on the November ballot. Also there is a citizen petition calling for capping property taxes at 1.35 percent of a home's value, but if it makes the ballot it won't be before 2010.

I moved to Florida five years ago and pay much higher taxes than neighbors in identical condos who have lived here longer. Will this amendment fix such disparities?

No, it could increase disparities. Someone could move into the condo next to you and still pay less in property tax because he will bring their Save Our Homes benefit with him.

I read that portability would likely be challenged in court. If it's struck down, would Save Our Homes also be thrown out?

A legal expert hired by the Florida Senate said portability could be susceptible to legal challenge. Legislative leaders disagree. How a judge would rule and how broadly is unknown.

What benefit is there for mobile home owners?

For mobile home owners who pay property taxes on additions, like a storage shed, carport or porch, Amendment 1 would exempt the first $25,000 in property value from taxes.

Will this plan cut the taxes on my non-homesteaded property?

No, but it would prevent large hikes in the future because your assessed value couldn't increase more than 10 percent a year. In the past 20 years, average property assessments for businesses have exceeded 10 percent only three times: in 2004, 2005 and 2006.

If the amendment gets the 60 percent approval, would it take effect immediately?

If approved, Amendment 1 is retroactive to Jan. 1 of this year.

Amendment 1, put on the ballot by the Florida Legislature, is actually a collection of four changes to Florida's property tax system. A yes vote approves all of them; a no vote is against all of them. A rundown of the four:

Increase the homestead

Currently, homestead properties are exempt from taxes on the first $25,000 of property. Amendment 1 would exempt another $25,000 of property from local and municipal taxes - but not from school taxes, which account for about 40 percent of property tax bills.

To fully enjoy the new exemption, which the state estimates would save homeowners about $240 annually, the property must have an assessed value of at least $75,000. Homes worth less than $50,000 would receive no new benefit, and those between $50,000 and $75,000 would have a prorated benefit.

Save Our Homes portability

This provision of Amendment 1 is designed to address a phenomenon created by Save Our Homes, which caps the annual increase in assessments for homesteaded homeowners at 3 percent. The wildly popular program has shielded the majority of Florida's homeowners from dramatically higher taxes during the recent real estate runup. But it also led some homeowners to feel trapped in their homes because they would face much higher taxes if they move and lose their Save Our Homes benefit.

"Portability" would allow homesteaded homeowners, starting this year, to transfer up to $500,000 in benefit under Save Our Homes to a new home of equal or greater value. Homeowners who move to a less expensive home could transfer a prorated benefit.

Nonhomestead cap

This provision would cap property assessment increases for nonhomesteaded property, including businesses, at 10 percent annually. However, the cap will not be applied to school taxes, for which assessments will continue to grow with the market.

New exemption for business equipment

Creates a new $25,000 property exemption for some business equipment and mobile home property.

[Last modified January 27, 2008, 23:46:25]