(TALLAHASSEE, FL.) - Florida is one of nine states where residents are not subject to state income tax, and may soon have the lowest property taxes in America.
There are numerous property tax exemptions in Florida, but only the general exemptions will be affected by Amendment 3.
Currently, standard homestead exemptions can take up to $50,000 of taxable value off of your home. The $50,000 is split into two aprons, with the first applying to every home bought by a primary Florida resident. The second apron provides exemptions to only non-school taxes, and can provide up to an additional $25,000 to homes valued over $50,000.
A home valued at $300,000 has a school taxable value of $275,000, and $250,00 for non-school-related taxes. A $45,000 home would pay taxes for $20,000 of property, the second level of exceptions being inapplicable due to the property value.
If Amendment 3 were to pass, the $50,000 of general exemptions could jump to well over $250,000. The exemptions are scheduled to gradually increase, with $250,000 in general exemptions available in 2028.
The amendment would also allow the maximum exemption ($250,000) to rise with inflation reported by the Consumer Price Index (CPI).
New homeowners would follow a different formula and gain access to $250,000 in exemptions five years after buying the home. Current Florida homeowners could access as much as an additional $100,000 in general exemptions as early as next year if the amendment passes.
The most common question asked about Amendment 3 is how much money residents will save. Property taxes are based on a home's assessed value, not Market Value. Several protections are in place to limit how much a home's assessed value can change.
In Tallahassee, the median home has a market value near $300,000, but an assessed value of only $225,000. If Amendment 3 passes, the median home value would only pay school-related property taxes.
Property tax is calculated by the Mill Rate, and in Tallahassee, the school board has set the Mill rate at 5.3, or $5 for every $1,000 of taxable value.
A home with a $225,000 assessed value is eligible for $25,000 in school-related exemptions, making its taxable value a flat $200,000. If Amendment 3 passes, this homeowner will pay $5 for every $1,000 (or 0.005 multiplied by the home's taxable value), or about $1,000.
Without Amendment 3, the median homeowner would pay the mill rate set by the City of Tallahassee, Leon County Commission, medical services, and others. The cumulative mill rate is 14, and the taxable value is $175,000. This property would require $2,450 of non-school-related property taxes and $1,000 for school-related property taxes.
As rates currently stand, the median homeowner would save just over $2,000 annually on property taxes. However, if you are a senior or already qualify for other exemptions, the general exemptions will not benefit you as much.
Seniors may be more inclined to vote against lowering property taxes, as the legislation may prompt local municipalities to increase their mill rate.
Numerous legislatures have discussed the difficulties cities may face if they were to lose out on so much funding.
Photo Credit: Leon County
Leon County even created a website to explain how devastating the amendment could be to the city. Outside of the mill rate, cities have other taxing capabilities, and many municipalities would attempt to do so to make up for lost revenue.
Photo Credit: Rob Long, Representative, Florida District 90
"The question isn't whether those bills get paid. It's how. The answer is fire fees, stormwater fees, garbage assessments, utility taxes, parking fees, permit fees, special assessments, local sales tax pressure, delayed maintenance, and reduced services," said District 90 Representative Rob Long.
The bill will need a supermajority to pass, meaning that fewer than 40% of voters can oppose the legislation for it to pass.
In 2018, Amendment 1, a property tax bill similar to Amendment 3, failed, garnering only 58% of Florida votes. The bill would have added another $25,000 in general tax exemptions.
Let us know if you plan to support Amendment 3! Please reach out to jason.f@lead4earth.org for any updates or corrections.
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