On January 29^th, voters overwhelmingly approved Florida’s “Amendment One,” constitutionally changing the way property taxes are levied in our state.  Amendment One allows homeowners to transfer their current tax savings from the “Save Our Homes” cap to a new homestead property anywhere in the state. The Amendment also increases Homestead Exemption to $50,000 for properties valued at $75,000 or more (the additional $25,000 exemption does not apply to school districts).  Third, Amendment One creates a $25,000 exemption for tangible personal property.  And finally, it creates a 10% annual assessment cap similar to Save Our Homes, for non-homestead properties.  Amendment One is retroactive to Jan. 1, 2008.  Now what?

The Florida Department of Revenue has issued further information regarding the implementation of Amendment One, including a reminder that citizens entitled to benefits under this amendment due to sales/purchases in 2007 must file the appropriate forms no later than March 1, 2008.

If you purchased a new home in 2007, you must file for Homestead Exemption before March 1^st by completing the “Application for Ad Valorem Tax Exemption” form and submitting it to the County Property Appraisers Office.  If you sold your homestead property last year and have already purchased or intend to purchase a replacement home in 2008, you qualify for “portability” and must file the “Transfer of Homestead Assessment Difference” form in addition to the “Application for Ad Valorem Tax Exemption” form.  But if you are currently receiving a Homestead Exemption, you do not need to do anything.  Your exemption will automatically increase to $50,000 for 2008.

For business owners, we now have a $25,000 exemption on business equipment.  To receive this benefit you must file your Tangible Personal Property Tax Return by April 1^st.  In following years, unless the value of your equipment exceeds $25,000, you will not have to re-file.

Beginning January 1, 2009, an annual 10% assessment cap will go into effect for non-homestead properties. This annual assessment cap is similar to Save Our Homes.  To receive this benefit, property owners will have to apply when the application becomes available in October of 2008.

Overshadowed by Amendment 1, but no less important is the Limited Income Senior Citizen Exemption.  For qualifying seniors, this exemption has also increased to $50,000, but application must be made by March 1, 2008, as well.

For a free brochure with more detailed information or assistance locating the required forms, please call me at 305-801-3133 or visit my web site at www.MelanieSellsMiami.com