Save Our Homes - Florida Property Tax Cuts

"Save Our Homes" Florida Property tax cuts

The Florida Legislature passed the first phase of property tax reform that takes effect immediately: providing a tax cut to all property owners in this year's bills and capping the growth of local governments.

This tax relief will result in the tax bills this November that will reflect a 7 % budget cut in Escambia and Santa Rosa counties, 5 % cuts in Pensacola and Milton, and 3 % cuts in Jay and Gulf Breeze, FL.

But the biggest potential payoff for residential homes will be decided on January 29th when voters statewide will be asked to eliminate the Save Our Homes law that limits property increases to 3 % a year. Instead, if approved, it will be replaced by a super homestead provision. While this may be welcome news to some homeowners, the bill is highly unpopular with people owning second homes and investment property. The homestead provision applies only to your primary homes, while the increases will continue to affect all other real estate.

Many Florida condo owners site the escalating costs of maintaining rental property as reason for selling. As taxes, insurance and mortgage rates continue to go up, many condo owners have seen the value of their properties decrease over the last year. In a state that sites tourism as a major industry this is a potential pitfall.

Increasing home values will in part be exempted from the tax rolls. This will mean billions of dollars less for schools if the proposes amendment passes. While our politicians promise that schools and other services will not be impacted by the amendment, there is no budget in place to account for these changes. In the end, the vote comes down to taking the amendment on faith that the budget for schools and the services that local municipalities provide will somehow work itself out. The devil is in the details.

Comment by Miriam Rowland

"Instead of doing a "super homestead" where you penalize condo owners or investment property owners or having these large property tax increases where you penalize the new homeowner, why not have a percentage of the property's value (i.e. 25 % as your deduction.) You keep up with escalating real estate values and yet everyone gets the same breaks. If I own a $300,000 home then my taxes are $3775 if I live in Santa Rosa County. That's not bad. If I own a $650k condo then my taxes are 8,175.00."