Guest Column

Tips to reap Amendment 1 benefits

By Mike Wells
Published February 11, 2008

On Jan. 29, voters passed Amendment 1, which substantially changes the Florida property tax system. As Pasco County property appraiser, it is my responsibility to provide each property owner all the benefits accorded by the amendment. To accomplish this, it is important that property owners understand the amendment and complete the steps required of them to receive the benefits.

Save Our Homes portability: This provision allows property owners who have enjoyed reduced assessments as a result of the Save Our Homes limitation on Jan. 1, 2007, and who abandoned that Florida homestead, to transfer the benefit to a newly established homestead. After 2008, the requirement is that the applicant must have received a Florida homestead exemption at some time in either of the previous two years. The property owner seeking this benefit is required to complete an "Application for Ad Valorem Tax Exemption" and the supplemental "Transfer of Homestead Assessment Difference" application (Form No. DR-501T).

The supplemental application may be completed at the same time as the "Application for Ad Valorem Tax Exemption." Currently, all homestead applications must be physically completed in one of our five offices. For those individuals who have completed a 2008 application prior to Feb. 5, my office will be sending a DR-501T in the mail, which they may complete and return or they may visit one of the offices to complete the form in person. (For 2009, the homestead application and the transfer application will be combined into one form.)

The difference between the market value and the assessed value of the immediately preceding homesteaded property determines the difference to be transferred. Market value and assessed value of the previous homestead and newly established homestead are determined by the property appraiser of the counties where the respective properties are located. Naturally, the homestead status of the previous property must be removed. After the difference is verified, the benefit will be automatically applied. As is the case with the current Save Our Homes, the transferred benefit will apply to all tax levies.

The additional $25,000 homestead exemption: This does not require the property owner to take any action. The exemption will automatically be applied to the 2008 assessment. The additional homestead exemption does not exempt value subject to school tax levies and applies only to that portion of the assessed value greater than $50,000.

Tangible personal property: Personal property subject to ad valorem taxation will now receive a $25,000 exemption. This exemption applies to all tax levies. An additional benefit to the property owner is that after 2008, provided the value is less than $25,000, the property owner is no longer required to file a return with the Property Appraiser's Office.

In order to receive this exemption, the property owner must file a "Tangible Personal Property Tax Return" or "Pasco County Tangible Mobile Home/Travel Trailer Property Tax Return" for 2008. This return will serve as the application for the exemption.

Ten percent assessment cap: The amendment limits assessment increases to 10 percent for all nonhomestead properties. The limitation applies to all tax levies. This provision does not become effective until 2009 and will retire after 10 years. Currently, the amendment requires an application be filed with the property appraiser between Jan. 1, 2009, and March 1, 2009. However, it is our intention to work with the Department of Revenue to eliminate the application requirement.

The amendment and its provisions are complicated. However, my office is committed to ensuring that property owners receive all the benefits to which they are entitled, while the process of receiving those benefits remains as effortless as possible for the property owner.

Mike Wells is the Pasco County property appraiser.

[Last modified February 10, 2008, 21:38:40]