TAX RATE CUTS Q&A
On June 14, 2007 the State Legislature meeting in special session in Tallahassee, passed legislation proposing two fundamental changes to Florida's property tax system.

The first change, which is statutory, was signed into law by Governor Charlie Crist on Thursday June 21, 2007. It will require the county, most city governments and several other taxing authorities to roll their property tax revenues back to 2006 levels, with varying additional cuts. The additional cuts will range from three to nine percent depending on previous year's spending.
The school district is exempt from these cuts.

The second proposal, for a Super Exemption, will require a constitutional amendment. Florida voters will make that decision in a January 29, 2008 referendum. If approved by 60% or more of the voters, current recipients of the $25,000 Homestead Exemption and 3% assessment limitation will have the one time option to choose whether to receive the Super Exemption or continue with existing exemption and 3% assessment limitation.
Another component of the January 29 referendum will be a decision whether or not to grant a $25,000 exemption to businesses. If passed, the exemption would apply to Tangible Personal Property such as computers and office furniture.


OWNERS OF HOMESTEADED PROPERTIES

QUESTION: Will the tax cuts be applied to my next tax bill?
ANSWER: Yes. The reduction will be reflected in the 2007 property tax bill which will be mailed to you in November 2007.

QUESTION: How do I know how much lower my 2007 taxes will be?
ANSWER: Every August, a Notice of Proposed Property Taxes is mailed to all property owners. The 2007 Notice of Proposed Property Taxes will outline the estimated 2007 taxes for the property with the tax rate cuts mandated by the state legislature. The notice will also include important information such as property values, exemptions applied to the property, public hearing dates and last year's taxes.

QUESTION: Will I get a refund?
ANSWER: The tax reform legislation will not result in refunds but will reduce future taxes.

QUESTION: Do the tax rate cuts apply to all agencies collecting taxes on my property?
ANSWER: The new reduced rates apply to county and city taxes and to State taxing authorities such as South Florida Water Management District. They do not apply to the School Board portion of your property taxes, which can account for up to 40 percent of your tax bill.

QUESTION: What am I being asked to vote on next January?
ANSWER: On January 29, 2008, voters will be asked to decide if they want to change the Florida constitution to allow for a new super exemption which, over time, would replace the current $25,000 homestead exemption and the accompanying Save Our Homes 3% assessment limitation. New homeowners would fall under the new super exemption.

QUESTION: How much is the new super exemption?
ANSWER: If voters pass the super exemption on January 29, it will work in the following way:The first $200, 000 of the value of a home will be 75% exempt. The next $300, 000 will be 15% exempt. The example below compares a first year 25,000 Homestead Exemption to the proposed Super Exemption:
A home valued at $350,000 will result in the following calculations:

$25,000 HOMESTEAD EXEMPTION
SUPER EXEMPTION

MARKET

350,000

350,000


ASSESSED

350,000

350,000


STANDARD EXEMPTION

25,000

NA


SUPER EXEMPTION

NA

200,000 X .75 = 150,000
150,000 X .15 = 22,500
TOTAL = $172,500



TAXABLE VALUE

$325,000

$177,500

NOTE: The maximum exemption for homes valued at $500,000 or more will be $195,000.

Click here to use the Save Our Homes/Super Exemption Comparison Calculator

QUESTION: Will the Save Our Homes 3% limitation apply to the Super Exemption?
ANSWER: New applicants will benefit from the Super Exemption that can be worth up to $195,000. The 3% assessment limitation under the previous $25,000 Homestead Exemption will not apply to new owners. Only current recipients of the $25,000 Homestead Exemption and assessment limitation will have a one time option to continue with that benefit, or change to the Super Exemption.

QUESTION: When will I be required to make a choice between my current $25,000 Homestead Exemption and the Super Homestead Exemption?
ANSWER: If voters approve the changes in the January referendum, the Property Appraisal Department will write to all property owners formally informing them of the change and advising them of the timeframe within which they must make that choice.

QUESTION: If the changes are approved and I buy a new house, will I be able to apply for the Homestead Exemption and 3% Save Our Homes cap, instead of the Super Exemption?
ANSWER: If the Super Exemption passes on January 29, new applicants will benefit from the Super Exemption worth up to $195,000. The older $25,000 Homestead Exemption and 3% assessment limitation will no longer be an option for new applicants.
Homeowners who currently have the $25,000 Homestead Exemption can choose to keep this and their 3% cap as long as they retain ownership of that home and maintain that home as their homestead.

QUESTION: Will the Super Exemption affect my new $50,000 senior exemption?
ANSWER: No. The $50,000 senior exemption will still apply with the new super exemption.However, the super exemption applies to all taxing agencies while the $50,000 senior exemption only applies to county taxes and taxes in some cities.

RENTERS
QUESTION: I live in a rented home. Does this tax rate cut affect me?
ANSWER: The new tax rate directly affects owners of rental properties by reducing their overall property tax bills. This reduced tax obligation should reduce a property owner's overall operating expenses.

BUSINESS OWNERS
QUESTION: Are there any new benefits for businesses?
ANSWER: Business enterprises will benefit from the rollback of tax rates to 2006 levels, in that these reductions apply to Tangible Personal Property (TPP) such as computers and office furniture.Additional benefits will accrue to business owners if the changes being put to voters in the January 29 referendum are approved by more than 60 percent of those who vote. Under those changes businesses will be able to apply for a $25,000 exemption on Tangible Personal Property.