What you should you do to receive benefits of Amendment 1?

Citizens voted January 29, 2008 to change the property tax system in Florida. To receive some of the benefits of the changes enacted, certain citizens must take action by March 2, 2009.

The Constitutional amendment created four new opportunities for taxpayers to obtain tax relief:

1. Increased homestead exemption

2. Portability of “Save our Homes” benefit

3. $25,000 exemption for tangible personal property

4. 10% annual assessment limitation for non-homestead property

What taxpayers must do to receive these new benefits?

1. Increased homestead exemption – Homeowners that are currently receiving the homestead exemption will automatically receive the increased homestead exemption. No action is necessary.

2. Portability of “Save our Homes” benefits – The ability to transfer accumulated benefits of the homestead property assessment limitation, described as the dollar value difference between market value and assessed value or a percentage thereof, from and existing homestead to a newly homesteaded property. The homeowner has two years from the time the homestead is relinquished to establish a new homestead and transfer the accumulated Save-Our-Homes benefits. If the new homestead has a higher just value, the amount of the benefit transferred; if the new homestead has a lower just value, the amount of the benefit transferred will be reduced. The transfer benefit may not exceed $500,000. This provision applies to all taxes. NOTE: The previous homestead property will be reassessed at just value as of January 1 after the abandonment occurs. The statutory homestead filing deadline is March 1 each year unless it falls on a Saturday, Sunday or legal holiday the it will be extended to the next day that is not a Saturday, Sunday or legal holiday.

MARKET VALUE

(MINUS) ASSESSED VALUE

= PORTABLE AMOUNT

3. $25,000 exemption for tangible personal property – Tangible personal property taxes apply only to certain taxpayers in Florida – typically businesses and certain owners of mobile homes. The tax does not apply to homesteaded property. In order to receive the $25,000 exemption for tangible personal property, taxpayers subject to the tax must file a tangible personal property tax return with the property appraiser. Failure to file a tax return by April 1, or within any applicable extension period, will be subject to late filing penalties. The $25,000 exemption will not be lost as a result of late filing.

4. 4. 10% limit on annual assessment increases for non-homestead property – The 10% limitation takes affect 2009. No application is necessary.

If you have any questions about what action you must take to receive these new benefits, please contact our office at 850-651-7240 or 850-689-5900.