Florida voters will get to decide in the November election whether to shield more of the value of their homes from property taxes under a proposed amendment to the Florida Constitution, but the measure might mean higher taxes for renters, landlords, and other commercial property owners.
The Annual Adjustments to the Value of Certain Homestead Exemptions measure will appear on the ballot as Amendment 5. The Legislature voted to place it there through HJR 7017, which cleared the House and Senate during their regular session on party-line votes.
The ballot summary reads a little confusingly:
“Proposing an amendment to the State Constitution to require an annual adjustment for inflation to the value of current or future homestead exemptions that apply solely to levies other than school district levies and for which every person who has legal or equitable title to real estate and maintains thereon the permanent residence of the owner, or another person legally or naturally dependent upon the owner is eligible. This amendment takes effect January 1, 2025.”
To resolution sponsor Rep. James Buchanan, a Republican from Sarasota County, the desired effect is simple.
“This HJR is going to encourage home ownership, drive down the cost of home ownership, and ensure over time, as the cost of living goes up, that is reflected in their homestead exemption taxes,” he said.
The measure needs to win support from 60% of the voters to amend the Constitution.
Tax breaks
Florida provides an exemption from property taxes for the first $25,000 of the assessed value of a homestead, meaning a building where the taxpayer lives. There’s a second exemption of $25,000 of assessed value over $50,000, except for school taxes — in other words, on values between $50,000 and $75,000. The money fuels counties, municipalities, district school boards, and special districts.
State law requires reassessment of property values every year. Under the measure, assessments would be indexed to Consumer Price Index. That would apply only if the values increase — but not if they fall. Additionally, the change would not apply to school taxes. But the size of the exemption would grow next year to represent the $25,000 base exemption plus the rise in CPI, and similarly in future years — money lost to local government services.
State economists predict the measure would reduce local government tax collections by $22.8 million during the 2025-2026 fiscal year, growing to $111.8 million during the 2028-2029 fiscal year, assuming existing tax rates.
A separate state law, the Save Our Homes Act, caps homestead tax increases at 3% per year or the CPI, whichever is less, representing an additional squeeze on local governments.
During a Jan. 23 hearing before the House State Affairs Committee, skeptics worried the measure would make it harder for local governments to support first responders — police, firefighters, and other emergency services.
“They have one pot of money to pay their bills, and what your bill is doing is diminishing their ability to collect dollars,” observed Democratic state Rep. Robin Bartleman of Broward County.
“I don’t necessarily think this is, you know, the state’s or the local government’s money to begin with. This is the people’s money. And we’re simply over time indexing their existing homestead exemption,” Buchanan replied.
Burden shift
Bartleman suggested the proposal would cause serious problems if the housing market crashes, as it did in the financial crisis of 2008.
Buchanan replied that inflation has undermined the value of the homestead exemption, justifying indexing the tax break.
Bob McKee, deputy director for public policy for the Florida Association of Counties, warned committee members the change would punish non-homestead property owners.
When local governments set tax rates each year, “it falls equally on all taxpayers,” McKee said. “What this does today is it shifts the burden. It shifts the burden from homesteaders to other participants in the property tax system — to businesses, to renters, to second-home owners.”
Homesteaders today end up paying taxes on about 40% of their assessed value, McKee said, while others pay on 80% of their property values.
The Florida League of Cities is also on record opposing the change.
Bartleman confirmed that cities in her district oppose indexing.
“This will have a negative impact on each and every one of them. I’m also concerned about the housing crisis that exists in Broward County, knowing that the burden will be passed on to the businesses in my county as well as the rental properties that will negatively impact the people who are renting, because those rates would have to go up,” she said.
“I see this as less of a tax cut and more of a tax shift where folks that are not property owners would end up having to make up the difference,” said Orange County Democratic state Rep. Anna Eskamani.
“I’m a renter, so I can relate to that,” Eskamani added.
–Michael Moline, Florida Phoenix
Pogo says
@Florida Republican’s answer to the furious backlash of women to Dobbs
…and the backlash to all the rest of their shit. It will probably succeed.
Goodnight, and good luck.
Al says
How about a novel idea, the county should find ways to cut spending . It always is the political statement that fire, and police would be cut. How about cutting your staff and the other usless people on the county payroll. Next quit buying new cars and trucks for every office. Next learn to work in older buildings like the rest of us.
It’s a shame that you might have to live within your means and budget like we all have to. How about the homeowners that get an increase each year and have to do without things to pay the bill?
Fernando Melendez says
Do you mean expenditures like a new helicopter for 5.5 million, two roundabouts at 2.5 million each, a 16 million dollar new library , and a quarter million dollar drone? Because if so I agree with you on the spending.
http://www.vote4fernando.com
Nancy N. says
Of course, you’re totally right, it’s a complete waste to spend money on equipment and projects to save lives. I mean, how do you know the people whose lives are saved would vote for your party? Or that they are the “right” kind of people? And a LIBRARY? Such a bad idea to give the serfs access to information. They might decide to revolt if they become educated.
Good lawd says
So how much would the lawsuit settlement be when the thirty year old chopper crashes and kills all on board? Less than 5 mill right Fernando?
Shark says
Al – I totally agree. They should start with the department responsible for pissing away money on plants and trees. One day they plant and a few months later they dig them up and replant and it goes on and on. I’ve seen workers in dangerous locations pulling weeds all day. Probably waste tens of thousands a year if not more !!!!!
Deborah Coffey says
Well, I never thought Republicans could govern well. But, this idea fits in with their bad philosophy that wealthier people should get all the breaks and everybody else should pick up the slack…even when they can’t afford to do that. Very bad idea. On the other hand, the more money taken in by our local government, the more it gets wasted by, again, poor governance.
Billy says
Stop all the development and we would all be better off! Less people, traffic, stop spending wasteful, and lower taxes!
PC Dave says
Leave it up to individual counties, the same way they can increase sales tax through a ballot initiative to pay for things like schools and other local issues.
With the explosion of huge developments
And sudden increases in demand on infrastructure that never existed before, now is not a good time to decrease their tax base. Increases of impact fees on these huge developers is only a temporary stop gap, but does not help in the long term. Sure this may placate the I was here first crowd, but does nothing to ensure the long term viability of the individual counties.
dave says
I like this comment “This is the people’s money”, if it really is, stop messing with ALL the people monies, homeowners and renters. Find another way.
Land of no turn signals says says
I’m not to worried about the landlords.There are many ( more than you think) houses that are homesteaded but are being rented.
Hmmm says
None of this matters as long as the insurance fiasco continues on its trend. Companies are leaving florida. Others either wont insure you or its expensive. Its going to affect everyone.
Paradise Lost says
The people should vote this referendum down. Especially because it was clearly written to confuse voters. That in itself should be an automatic NO vote. Florida is no longer the inexpensive retreat that people have flocked to. Especially those on a fixed income. Florida grew way too fast with poor infrastructure planning and no matter how they spin it, someone will have to pay for it. The cost of living in Florida is skyrocketing. People are leaving Florida. And those that can’t, regret moving here. Has anyone noticed there’s more homes for sale in Florida? We’re back to pre-covid levels. Homes remain on the market much longer. This bill would be a recipe for disaster.
Pogo says
@PL %100
The pricks who float above all the misery they have created will find themselves masters, and prisoners, of their creation.
Ed says
MILLION$ wasted at Cody’s Corner roundabout.
Started in Feb. Stop work in March
Nothing will be done untill June at the earliest now. Contractor getting oaid a couple million for delay due to complete lack of planing
Oh there are 2 new stop signs to make it a 4 way stop intersection which wasn’t supposed to work
The blind leading the blind on this project
Jk says
It may look like a waste, but the powers that be are about to develop the heck out of Route 11.