Homeowners in Florida might see a reduction in their property taxes following the passage of House Bill 7019 by the Republican-led state legislature, which was signed by the governor on Friday. This bill now awaits voter approval as Constitutional Amendment 5 on November’s ballot.
Currently, homeowners in Florida can lower the assessed value of their homes by $50,000, reducing their property tax burden. For a $300,000 home, taxes are calculated on $250,000. Amendment 5 proposes to increase this exemption in line with inflation rates, further reducing taxes. If the Consumer Price Index rises by 4%, the homestead exemption would increase accordingly.
John White, a South Florida homeowner knowledgeable about the local real estate market, highlighted the significance of such measures. “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, it’s great and incentivizes people to come and be property owners in Florida,” White stated.
State Representative Anna Eskamani, a renter, expressed concerns about the broader impact. “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,” she told the Florida Phoenix.
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To help counties, particularly rural ones, cope with potential revenue drops, the state has allocated funds to support them if the amendment passes. This aims to mitigate negative effects on essential services.
As voters gear up to decide on Amendment 5 in November, discussions continue on its benefits and potential drawbacks. The amendment promises relief for homeowners but poses broader economic questions for Florida’s financial landscape.
