Florida Property Tax Reform
Understanding Property Taxes
Property taxes can be complex and vary significantly by region. Our aim is to provide comprehensive insights into Florida's property tax system for better clarity and awareness.
Florida property tax reform plan
Florida property tax reform should include 5 variables
1. Homestead Properties
2. Senior Owned Homestead Properties
3. Non-Homestead Properties
4. Millage
5. State Funding
Homestead Rebate
Current $50,000
Proposed $100,000
State reimburses County for the cost of this increase in homestead rebate
Current Homestead assessment annual increase 3% cap
Proposed Homestead assessment annual increase 2% cap
Proposed Senior owned Homestead annual increase 1% cap
Non-Homestead Properties
Current Non-Homestead assessment annual increase 10% cap
Proposed Non-Homestead assessment annual increase 7% cap
Explanation current homestead cap is 3% and non-homestead cap is 10%.
10 to 3 is 3x+1. 7 to 2 is 3x+1
Millage
Proposed Millage annual increase 2% cap
Millage cap 22 mils
Explanation Currently the highest millage in Florida is 22 mils in St Lucie County.
The millage cap is equal to the highest current millage in Florida.
New Purchase Assessments
Current Approximately 2% of the purchase price.
Proposed Homestead rebate assessments could be transferable to home buyers who homestead the home purchased.
Explanation This would remove a disincentive to buy a new property, because people would not be charged with a higher reassessment after buying a property.
Transferability of homestead rebates to primary home buyers would give an advantage to people looking to live in their new home over investors, which would increase people’s ability to attain home ownership.
Portability
Current Limit $500,000
Proposed Full amount of any accrued savings from the Homestead rebate.
The state reimbursement of the rebate increase provides a way for the counties to recoup the lost revenue without an increase to other tax or fees by the county, and prevents a shock to the county finances.
The lowering of assessment increase caps will occur over multiple years, this gives the counties time to make adjustments without a shock to the system.
Having a cap on millage and millage annual increases prevents the counties from simply raising the millage to adjust for lower assessments.
The state reimbursement of rebate increases along with a lower cap on Non-Homestead annual assessment increase prevents the burden of recouping revenue being put on Non-Homestead properties.
Written by:
James Karas
Contact Us
floridapropertytaxreform.org
FloridaPropertyTaxReform.org
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