The Florida Legislature looks set to vote in favor of a measure that could eventually significantly reduce property taxes for South Florida homeowners whose property is valued over $100,000.
The possible tax reduction, if the measure is agreed, would be determined by voter’s decision on a constitutional amendment to be placed on the 2018 ballot. Specifically, the amendment would ask voters to vote for an additional $25,000 homestead exemption for residential properties valued over $100,000. Should 60 percent of the voters approve the amendment homeowners would be relieved of paying taxes on another $25,000 of the value of their property beginning in 2019.
Florida residents who own and live in their home as their permanent resident are currently eligible to apply and receive a deduction of up to $25,000 off their property’s assessment. This provides several hundred dollars in tax savings to homeowners.
However, an increase in the homestead exemption while a positive gain for homeowners could be a pain for Florida municipalities. The measure would mean less revenue for cities and counties, forcing them to either cut back on essential services like fire and rescue services, or increase millage rates on commercial and other properties.
Preliminary estimates indicate that there could be a fall in revenue for all counties and cities in the state of approximately $644 million. Miami-Dade County, for example, could realize an annual decline of about $50 million in revenue and the city of Miami, $17 million
According to Tax-Rates.org that computes data for the Florida Department of Revenue the median property tax in Florida is $1,773 per year for a home with a median value of $182,400.
Opponents of the measures see it as a political ploy to woe voters who are homeowners to vote for Republicans in the next year’s elections. Included on the state ballot next year are races for state governor, 27 congressional representatives, several seats in the Florida Senate and all the seats in the Florida House.
Opponents also claim any further reduction of property tax to homeowners, most of whom are from the middleclass, would be unfair as it will shift tax burden to low-income residents who are mainly tenants struggling with the cost of rental.
