Q & A: Here’s how changes in Florida's property tax law affect you
By Mark Hollis and Linda Kleindienst Tallahassee Bureau Posted June 27 2007
 |
TALLAHASSEE -- Have questions about what the Legislature's vote to reduce property taxes means? Join the club.
In recent days, you've been blitzing us with calls and e-mails to ask: How much will be cut from my tax bill this year? How should I vote on the so-called super homestead exemption Jan. 29? Do I have to give up Save Our Homes?
The jury is still out on the fate of the proposed constitutional change in the homestead exemption. But the answers to many of your other questions about what state legislators have done are clear.
Q. What happens now that Gov. Charlie Crist has signed the legislation to start the first phase of property tax breaks?
A. Most cities, counties and special taxing districts will be required to freeze tax collections at current levels, then make an additional cut, ranging from 3 percent to 9 percent. School districts are exempt.
Q. When will I find out how much I will save?
A. County property appraisers send a truth in millage, or TRIM, notice to all property owners in August. This notice is not a bill. Tax bills typically don't arrive until November. But the notice will tell you the taxable value of your property and the estimated taxes from each local taxing authority, for example the County Commission, cities and the School Board. The notice will also tell you when and where these authorities will hold public meetings to discuss their proposed budgets and set your final tax rates.
Q. How much will most people save?
A. On a statewide average, the initial property tax reduction should be $174 for homeowners, $199 for owners of non-homestead residential property and $944 for owners of commercial property. The exact amount depends on a property's value and location.
Q. Can local governments override the rollback and revenue cuts?
A. Yes. But it would take a two-thirds majority of the city or county commission, or in some cases a unanimous vote.
Q. What happens after this year's tax cut? Can taxes go up again?
A. Local governments will have to limit future growth in tax collections to the rate of personal income growth in Florida. But local governments will be able to increase their budgets in other ways. New properties can be added to the tax rolls, increasing local revenue. Cities and counties also may find other approaches to pay for local services, such as increasing fees on new home construction.
Q. What about the proposed constitutional amendment to create a "super-sized" homestead exemption?
A. On Jan. 29, voters will be asked whether to create the new tax exemption, which would eliminate an estimated $16 billion in property taxes during its first five years. The exemption would become part of the state constitution and go into effect only if 60 percent of voters agree.
Q. How would the new exemption work?
A. Permanent Florida residents are currently eligible for a $25,000 homestead exemption (meaning that much of a house or condo's value cannot be taxed), as well as Save Our Homes protections that limit increases in a primary home's taxable value to 3 percent a year. If voters approve the new exemption, property owners will have to make a one-time choice between keeping the existing benefits or taking the super exemption.
Q. What if I opt for the larger exemption?
A. Then you'd give up your Save Our Homes tax cap and the $25,000 standard exemption. You would become eligible for a new exemption that shields 75 percent of a home's value from taxation, up to $200,000. If your home is worth more, the new exemption would also eliminate taxes on 15 percent of its value between $200,000 and $500,000. The minimum exemption would become $50,000.
Q. What if my home is worth more than $500,000?
In recent days, you've been blitzing us with calls and e-mails to ask: How much will be cut from my tax bill this year? How should I vote on the so-called super homestead exemption Jan. 29? Do I have to give up Save Our Homes?
The jury is still out on the fate of the proposed constitutional change in the homestead exemption. But the answers to many of your other questions about what state legislators have done are clear.
Q. What happens now that Gov. Charlie Crist has signed the legislation to start the first phase of property tax breaks?
A. Most cities, counties and special taxing districts will be required to freeze tax collections at current levels, then make an additional cut, ranging from 3 percent to 9 percent. School districts are exempt.
Q. When will I find out how much I will save?
A. County property appraisers send a truth in millage, or TRIM, notice to all property owners in August. This notice is not a bill. Tax bills typically don't arrive until November. But the notice will tell you the taxable value of your property and the estimated taxes from each local taxing authority, for example the County Commission, cities and the School Board. The notice will also tell you when and where these authorities will hold public meetings to discuss their proposed budgets and set your final tax rates.
Q. How much will most people save?
A. On a statewide average, the initial property tax reduction should be $174 for homeowners, $199 for owners of non-homestead residential property and $944 for owners of commercial property. The exact amount depends on a property's value and location.
Q. Can local governments override the rollback and revenue cuts?
A. Yes. But it would take a two-thirds majority of the city or county commission, or in some cases a unanimous vote.
Q. What happens after this year's tax cut? Can taxes go up again?
A. Local governments will have to limit future growth in tax collections to the rate of personal income growth in Florida. But local governments will be able to increase their budgets in other ways. New properties can be added to the tax rolls, increasing local revenue. Cities and counties also may find other approaches to pay for local services, such as increasing fees on new home construction.
Q. What about the proposed constitutional amendment to create a "super-sized" homestead exemption?
A. On Jan. 29, voters will be asked whether to create the new tax exemption, which would eliminate an estimated $16 billion in property taxes during its first five years. The exemption would become part of the state constitution and go into effect only if 60 percent of voters agree.
Q. How would the new exemption work?
A. Permanent Florida residents are currently eligible for a $25,000 homestead exemption (meaning that much of a house or condo's value cannot be taxed), as well as Save Our Homes protections that limit increases in a primary home's taxable value to 3 percent a year. If voters approve the new exemption, property owners will have to make a one-time choice between keeping the existing benefits or taking the super exemption.
Q. What if I opt for the larger exemption?
A. Then you'd give up your Save Our Homes tax cap and the $25,000 standard exemption. You would become eligible for a new exemption that shields 75 percent of a home's value from taxation, up to $200,000. If your home is worth more, the new exemption would also eliminate taxes on 15 percent of its value between $200,000 and $500,000. The minimum exemption would become $50,000.
Q. What if my home is worth more than $500,000?
Jump to page: 1 2
posted by LadyIrene @ 6/28/2007 09:27:00 PM
0 Comments:
Post a Comment
<< Home