Florida Legislature Near A Property Tax Agreement that Citizens Will Vote on in January 2008

I am hearing that the Florida legislature is almost to the point where they will have a property tax compromise that we will vote on in January 2008. As you may remember, the original proposal was tossed out by a circuit court judge because it was "misleading".

The new agreement will probably contain some or all of the following:

• Retain the current Save Our Homes plan that limits increases in assessments on homesteaded properties to 3% per year.
• The new plan would allow people who moved from a home with Save Our Homes savings to take those savings with them to their new homes.
• Increase the Homestead Exemption. The first $25,000 of a home's value would be exempt, then the next $25,000 would be used for taxing purposes, then the next $25,000 would also be exempt from local taxes, except school taxes. So, a home (homesteaded) that was assessed at $75,000 would have a taxable value of just $25,000, as I understand it.
• Homesteaded properties of low-income seniors could be exempt from all property taxes.
• Tax breaks on some types of "affordable housing".

It is estimated that making Save Our Homes portable will save the average homeowner about $800 per year. Increasing the Homestead Exemption could save an average taxpayer about $240 in 2008. The amount of each homeowner's savings will depend on which exemptions he or she qualify for.

One proposal also being floated would save first-time home buyers $500.

Of course, local governments that get most of their funds from property taxes are not happy and they worry that services will need to be cut and personnel laid off. Some of the more rural counties where the average home values are lower than those in more suburban and urban settings may feel the pinch to an even greater degree.

Personally, the insurance companies scare me more than the property tax situation. But it does not appear that the legislature will soon address this issue that is bound to heat up again in the future. But in regard to taxes, only time will tell if our lawmakers have done us a favor or only made matters worse. A year from know we will either be cheering or looking for tar and feathers.

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