Florida's constitutional Amendment 1 was passed on 29th January 2008 by a 64% majority. What does this mean in practice? The Save Our Homes 3% annual cap on assessed values still exists for qualifying homesteads and Amendment 1 contains additional benefits. There were four parts to Amendment 1 as they affect property tax:

1. The annual homestead exemption was increased from $25,000 to $50,000 but the additional $25,000 only applies to homes where the assessed value exceeds $50,000 and it does not apply to school district levies. The additional exemption will be applied automatically in 2008 property tax bills to anyone qualifying for the base $25,000 homestead exemption and whose property assessed value exceeds $50,000.

2. Portability within Florida from one homesteaded property to another was established, subject to certain restrictions, for the Save Our Homes differential value - ie the difference on your tax bill between the just (or market) value and the assessed value that has been capped each year since homestead was established on a property.

To receive the benefit of portability an application should be made with the county property appraiser in the county where the new homestead is being established. Portability for the 2008 property tax year is still available for homesteads that were given up in 2007 provided that a new homestead is established by application with the county appraiser's office by March 1, 2008. This is also the deadline for establishing the normal 2008 homestead exemption.

For 2009 onwards portability is available by application provided that a prior homestead exemption existed within 2 years of establishing a new homestead.

The maximum portability benefit that can be transferred to a new homestead is $500,000. A property owner moving to a more expensive home (trading up) transfers the full value benefit from the prior homestead, subject to the $500,000 limit. A property owner moving to a less expensive home (trading down) transfers the percentage value from the previous homestead. Some worked examples for illustration purposes are available here (courtesy of Charlotte County Property Appraiser.

3. From 2009 onwards there will be a 10% annual cap on the assessed values of most non-homestead property. This will apply principally to businesses, second homes, investment property, rental property, vacation housing and vacant land.

4. For 2008 onwards there is a $25,000 asset value exemption for tangible personal property tax for businesses.

For more information please contact the Property Appraiser either in Charlotte County on 941-743-1593 or in Sarasota County on 941-861-8200.