Residents of Florida will vote for more than simply the president on November 5. Along with five other changes, they will decide whether to modify the homestead property tax exemption yearly for inflation.
The homestead exemption is a benefit now enjoyed by about 450,000 families in Miami-Dade County. Homeowners receive a tax exemption of up to $50,000 on the taxable value of their properties, which lowers the amount of taxes they have to pay.
What is it?
The goal of Amendment 5 is to adjust the homestead exemption for inflation yearly.
Homeowners in Florida can now lower their home’s assessed value by $50,000, which reduces their property tax obligation. For instance, a $300,000 house owner would have to pay taxes on $250,000.
That fifty thousand dollars is split in two: half goes towards taxes that support school districts financially, while the other half goes towards taxes that do not.
Amendment 5 would raise the exemption from non-school taxes by $25,000 at the rate of inflation.
Homeowners would therefore experience a corresponding increase in their homestead exemption if the consumer price index increased by 4%, significantly lowering their tax burden.
The text you will see on the ballot reads: “Proposing an amendment to the State Constitution to require an annual adjustment for inflation to the value of current or future homestead exemptions that apply solely to levies other than school district levies and for which every person who has legal or equitable title to real estate and maintains thereon the permanent residence of the owner, or another person legally or naturally dependent upon the owner is eligible. This amendment takes effect January 1, 2025.”
A “yes” vote is a vote in favour of adjusting the exemption annually. A “no” vote is a vote against this.
Impacts
If this proposal is granted, thousands of Miami-Dade households who are eligible for the exemption may get major financial relief.
That’s an incentive, according to John White, a homeowner who keeps a close eye on the South Florida real estate market.
“If a tax comes in, chances are it does not go down, it stays there, or it goes up, so anytime you hear about an initiative or success in getting taxes reduced on any level is great and incentivizes people to come and be property owners in Florida,” White said.
The drawback is that counties, which are municipalities, may experience a decline in revenue, which would raise questions about how to continue providing county services like libraries, police, and fire protection.
Moreover, tax cuts would not benefit renters, such as those who live in apartments.
“I see this as less of a tax cut and more of a tax shift where folks that are not property owners would end up having to make up the difference,” Orlando area state Rep. Anna Eskamani, who is a renter, told the Florida Phoenix.
The state has set aside money for primarily rural counties that would face a significant decline in revenue, should voters agree.
For Amendment 5 to be approved, at least 60% of voters must vote “yes”.
