Amendment One

On Tuesday, Jan. 29, 2008, voters approved Amendent One, a change to Florida's Constitution. The new Amendment allows residents with a Save Our Homes assessment cap to transfer all, or a significant portion, of their tax savings to a new property anywhere in the state. The Amendment also doubles the homestead exemption for properties valued at $75,000 or more for all tax levies except school districts. It exempts the first $25,000 in value of equipment used by businesses, and creates a 10% annual assessment cap similar to Save Our Homes, for non-homestead properties.

Amendment One is retroactive to Jan. 1, 2008. That means if you have applied for a new homestead exemption for 2008, and are entitled to transfer a homestead assessment difference from an existing homestead exemption for 2007, please file Transfer of Homestead Assessment Difference form, DR-501T, with the Property Appraiser's Office by Monday, March 3, 2008. Co-applicants transferring from a different homestead must fill out a separate form. If your previous homestead was in a different county, please include your contact information.

You may download Form DR-501T here. This form must accompany your original application for Ad Valorem Tax Exemption, Form DR-501 .

Here is a brief description of the four components of Amendment One:

PORTABILITY - If the market value of your homestead property is greater than its assessed value, Amendment One permits you to transfer that difference in value to your new property under the following scenarios:

If the property you are moving to is more expensive than the property you are moving from, you will be able to transfer your actual cap savings to your new property. The maximum amount of cap savings you can transfer is limited to $500,000.

Example:

If the market value of your current homestead property is $400,000 and its assessed value is $250,000, the amount of cap savings you have (the difference between the market and assessed values) is $150,000. If your new property has a market value of say, $500,000, you can move the $150,000 cap savings to your new property when you file for your homestead exemption.

Without portability, the assessed value of your new property would be $500,000. With portability the assessed value drops to $350,000. Based on a tax rate of 20 mills, portability would give you a $3,000 ad valorem tax break on your new property.

If the property you are moving to is less expensive than the property you are moving from, you will be able to transfer a percentage of your actual cap savings to your new property.

Example:

If the market value of your current homestead property is $400,000 and its assessed value is $250,000, the amount of cap savings you have (the difference between the market and assessed values) is $150,000. If your new property has a market value of say $300,000, you can move a percentage of your cap to your new property when you file for your homestead exemption.

The amount of cap savings you can take with you to your new property is determined by dividing the market value of your new property by the market value of your current homestead property. You then take that amount and multiply it by the assessed value of your current homestead property. In the above example, the result would be $187,50 0. The market value of your new property, $300,000, is divide d by the market value of your c urrent homestead pro perty, $ 400 ,000. The result is 0.75. You then take the assessed value of your current property,which is $250,000, and multiply that amount by .75. That will give you $187,500, which will be the assessed value for your new homestead property. Without portability the assessed value of your new homestead property would be $300,000.

While this may sound confusing, it is really basic math and our computer systems are programmed to automatically handle the calculations. Our Portability Calculator similar to the tax calculator already located on our Web site. The portability calculator will help you estimate your property tax savings should you think about moving and transferring your assessment cap.

There are no changes planned to the existing Save Our Homes assessment cap benefits. Portability will be an added benefit.

DOUBLING THE HOMESTEAD EXEMPTION - This increases the homestead exemption from $25,000 up to $50,000. The original $25,000 homestead exemption will continue to apply to all ad valorem tax levies. The additional $25,000 homestead exemption will apply to all ad valorem tax levies except school district levies. Residential property owners who currently receive a homestead exemption and who continue to qualify for the exemption will automatically receive the additional homestead exemption. No further application will be necessary.

Here's how it will work for you: Currently the first $25,000 of a property's value is exempt from ad valorem taxes. Under Amendment One, there is no additional exemption for property with a value of between $25,001 and $50,000. The exemption will remain at $25,000 for a property with a value of up to $50,000.

Beginning at a value of $50,001 and continuing through a market value of $75,000, the new homestead exemption will increase dollar-for-dollar with the increase in the value of the property.

Example:

A property with a $50,000 market value will receive a homestead exemption of $25,000.
A property with a $60,000 market value will receive a homestead exemption of $35,000.
A property with a $75,000 market value will receive a homestead exemption of $50,000.

The maximum homestead exemption a property can receive is $50,000. All other exemptions that are currently applicable will remain in effect. The typical tax savings for a homestead property with a value of $75,000 or more will be about $300.

NON-HOMESTEAD PROPERTY ASSESSMENT CAP - Beginning January 1, 2009, an assessment cap similar to Save Our Homes will go into effect for non-homestead properties. The annual assessment cap on these types of properties will be 10%.

To receive the assessment cap the owner of the property will be required to file an annual application. This non-homestead property assessment cap applies to owners of second homes, commercial properties and unimproved lands. It does not apply to school district levies, and will expire in 2019 unless renewed by voters in the 2018 general election.

TANGIBLE PERSONAL PROPERTY EXEMPTION - The first $25,000 in value of the furniture, fixtures and equipment used by a business will be exempt from taxation.

Businesses with tangible personal property assets will be required to file an initial return to qualify. Thereafter the requirement to file an annual return is waived unless the value of their assets exceeds $25,000.

This exemption does not apply to mobile homes classified as tangible personal property.

This exemption applies to all ad valorem tax levies, including the school district.

Tax savings can be upto $500 based on a tax rate of 20 mills.