On January 29, 2008 Florida voters will have the opportunity to pass a new Constitutional Amendment addressing a change in the current homestead exemption law.
Known as the “Super Homestead Exemption,” it will exempt 75% of the first $200,000 of a home’s value, and 15% of the next $300,000. The maximum homestead exemption would be $195,000 - compared to the current $25,000.
The upper limit threshold of $500,000 will be indexed to personal income and could be increased by approximately 4% annually. The legislature could also increase this with a two-thirds majority vote.
Keeping in mind 94% of Florida’s homesteaded property is valued at $500,000 or less, it is clear this bill is aimed initially at tax relief for the general population.
This should enable owners that have been “locked in their homes,” the opportunity to both move up to larger properties or to down size without being punished by the current tax code. This amendment would nearly cut property taxes by 70% for the owner of a new median priced home.
Several other features are included: Low-income senior protection; a limitation on the authority of local governments to increase property taxes; authorization for the legislature to assist working waterfronts and affordable housing with assessment changes; and the provision of a $25,000 tangible personal property exemption for small businesses.