Cities and Counties
Brace for Property-Tax Amendment
Florida's cities and counties
are bracing for the loss of an estimated $1
billion in property taxes if voters approve a
state constitutional amendment but taxpayers
would be the big winners, according to a recent
report in the Orlando Sentinel.
Amendment 4 — one of 11 constitutional
amendments on the Florida ballot would reduce
the maximum annual increases allowed in the
assessed value of businesses, second homes and
vacation homes from 10 percent to 5 percent. In
addition it allows an extra property-tax
exemption for new-home buyers on top of a
standard homestead exemption and stops an
assessment from increasing if the market value
has decreased.
Cities and counties in
Florida would receive $186 million less in
property taxes in the first year, with the
amount of lost revenue growing each year. By
2015, local governments would lose nearly $1
billion in property taxes, according to Florida
Association of Counties projections.
While officials worry about loss of revenues,
the amendment promises substantial savings to
homeowners. A first-time buyer of a $350,000
house in Orange County would save $9,203 before
the new exemption phases in five years. The
lower cap on non-homestead property businesses
and vacation homes promises even bigger savings
for property owners.
In addition to saving taxpayers money, a Florida
TaxWatch study says the amendment would create
as many as 20,000 new jobs and and add 383,810
new home sales statewide in the next ten years.
Florida Realtors are excited about the
possibilities and have launched an aggressive ad
campaign to encourage voters to support the
amendment.
As many as 60 percent of all
homeowners are being “overassessed” nationwide
and are paying more property taxes than they
should be, according to the nonprofit National
Taxpayers Union
Posted 10-29-12
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Source:
Property-tax amendment would hit local
governments' budgets - Orlando Sentinel |
