New property tax reform
The Florida Association of Realtors reports an effort to update the property tax legislation. The Florida Legislature approved a measure that the voters will see on the ballot in January. The main interest is in the Homestead exemption and the Save Our Homes provisions.
The homestead exemption will be increased. The current $25,000 exemption stays the same, but a second $25,000 is added for home values between $50,000 and $75,000. This will not apply to school taxes.
The more talked about change will be to the Florida Save Our Homes provision which caps the property tax increase to 3% per year on homes that are homestead. This cap has enabled many homeowners to remain in their homes for longer than they would have been able to without the cap. This is particularly true for senior citizens on a fixed income. One the other hand, people who do want to move haven’t been encouraged to do so because they would loose their Save Our Home coverage and would have to start over with a new purchase usually at a higher price. The new measure initiated by the legislature will allow portability or the ability for the homeowner to transfer up to $500,000 of accumulated savings to a new purchase within two years of selling their property.
Another important measure is the capping of a 10% annual assessment on non-homestead properties such as commercial, rental and second home properties.
It is expected that these changes, if approved by the voters in January, will help motivate the Naples real estate market since we have many locals who want to move up because of location or square footage and will be able to transfer their Save Our Home accumulated savings.