Amendment 5 would increase homestead exemption for inflation

Posted 8/27/24

Florida’s Homestead Exemption gives homeowners a break in property taxes. An amendment on the 2024 ballot would allow that exemption to increase ...

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Amendment 5 would increase homestead exemption for inflation

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Florida’s Homestead Exemption gives homeowners a break in property taxes. An amendment on the 2024 ballot would allow that exemption to increase with inflation.

Property tax (millage) rates are set by counties, school districts, cities and special districts in Florida. Property owners pay $1 in taxes for each $1,000 in assessed property value. The homestead exemption reduces the taxable value. To qualify for homestead exemption: the property must be your permanent residence; you must have lived at the property on Jan. 1 of the tax year in question; the property may not have been rented for more than 30 days in a calendar year.

Homestead exemptions work on a tiered system. Up to $25,000 in property value is exempt from the first $50,000 of assessed value. This includes all property taxes. Property owners pay full taxes on value between $25,000 and $50,000. For any assessed value between $50,000 and $75,000, an additional $25,000 is eligible for exemption. This exemption does not apply to school taxes. For value above $75,000, you pay full taxes.

If passed, Amendment 5 would provide an annual inflation adjustment for the value of the homestead property exemption that applies to non-school taxes. The adjustment would be made every year on Jan. 1, based on the Consumer Price Index reported by the U.S. Department of Labor.

This amendment was placed on the ballot by the Florida Legislature.

To pass, it must receive 60% of the vote.

The proposal is opposed by the Florida League of Cities.

Proponents argue adjusting the homestead exemption for inflation will give homeowners a little relief from rising taxes.

Opponents argue that giving a break to homeowners shifts more of the tax burden onto renters and commercial properties. The amendment would also reduce the potential tax revenue collected by cities, counties and special taxing districts. Under Florida law, counties and cities have a cap of 10 mills on property taxes. If the tax rate is already set at 10 mills, they cannot go higher.

Amendment, Florida, Homestead

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