Monday, June 18, 2007
New Florida Real Estate Tax Reform
Step 1: Cities and counties are required to cut their 07-08 fiscal year taxes to 06-07 revenue levels. A formula will be designed to cut additional government budgets. Also there will be yearly limits on tax increases.
Step 2: Voters will be asked to replace “Save Our Homes” and the $25,000 homestead exemption with a new super-homestead exemption in January’s election. Homeowners can choose their tax where long-time owners may stay with the old program as long as they stay in the same house. Amendment passage requires approval from 60 percent of voters. The exemption has two tiers:
Tier 1: Homestead property will receive an exemption of 75 percent of the first $200,000 in value of the home; a taxable value of $50,000. The minimum exemption is $50,000 per homestead.
Tier 2: Homestead property will obtain another 15 percent exemption for the next $300,000 in value. A $350,000 property, for example, would have a taxable value of $177,500 – $50,000 on the first $200,000, and $127,000 on the additional $150,000.
Step 2: Voters will be asked to replace “Save Our Homes” and the $25,000 homestead exemption with a new super-homestead exemption in January’s election. Homeowners can choose their tax where long-time owners may stay with the old program as long as they stay in the same house. Amendment passage requires approval from 60 percent of voters. The exemption has two tiers:
Tier 1: Homestead property will receive an exemption of 75 percent of the first $200,000 in value of the home; a taxable value of $50,000. The minimum exemption is $50,000 per homestead.
Tier 2: Homestead property will obtain another 15 percent exemption for the next $300,000 in value. A $350,000 property, for example, would have a taxable value of $177,500 – $50,000 on the first $200,000, and $127,000 on the additional $150,000.
