Florida's tax amendment - what you will be voting on January 29

What the Florida Tax Amendment means to you:

Doubling homestead exemption:

Would increase the property tax exemption on your primary homestead from $25,000 to $50,000 of the home's value. However, for those people whose homes are below $75,000, the practical effect is that they would not receive the full benefit of a doubled homestead exemption ($25K to $50K). Instead, their exemption would only apply to the home’s value between $50,000 and $75,000. School taxes are exempt from this benefit.

Save Our Home transfers

Known as “portability,” this allows homeowners to transfer their Save Our Homes benefits to another homestead if they move. However, they must do so within one year of their move. Residents who moved in 2007 and have established a new homestead this year can transfer their benefits, too. There is a benefit cap of $500,000, and this benefit applies to all taxes.

$25,000 personal property exemption

The clause applies applies mostly — but not exclusively — to businesses that wish to obtain tax benefits for equipment purchases such as computers, machinery, furniture, etc. But it also allows residents in mobile homes to claim the exemption for things like porch additions, if the resident owns the mobile home but not the land beneath it.

Assessment capped at 10 percent

Introductory language spells out the 10 percent assessment cap, specifies that it would not apply to school taxes and would only be in effect for 10 years.

Cleanup language

This repeals constitutional language dating back to 1980, when the homestead exemption increased from $5,000 to $25,000.

Future initiatives

Provides for flexibility of future initiatives regarding the state’s homestead exemption.

Retroactivity

This clause was inserted at a time when legislators weren’t sure whether the constitutional amendment election would be in January or November of this year. Because the election is Jan. 29, the practical effect would be that the 10 percent assessment cap would be applied retroactively to Jan. 1, when property was last appraised. That means it will apply to taxes that are levied by local governments according to the rates they will set this summer and fall and that will be collected this coming November through March 2009.