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CAN ALERT: A Summary of the Property Tax Reforms That Just Passed

Dear

The Florida House and Senate approved a pared-down tax reform package on Monday night. It will now be up to all of you as to whether or not these proposals become part of the Florida Constitution when you are asked to vote at the January 29th special election.

The property tax reform package includes both a general bill, SB 4-D and a proposed constitutional amendment, SJR 2-D.  Experts predict that the average homeowner will see a $220 annual tax break as a result of the following measures:

1.	$50,000 Homestead Exemption 
The proposed constitutional amendment provides for an additional $25,000 homestead exemption for the value of homestead property above $50,000. The exemption will not apply to school taxes.

2.	Portability
The plan leaves the current Save Our Homes provision intact but now allows property owners to transfer their Save Our Homes benefit (up to $500,000) to a new homestead within two years of giving up their previous homestead.  If the value of the new home is more than the value of the previous home, the entire differential can be transferred.  If the new home has a lower value, the amount of the accumulated benefit that may be transferred is proportional to the value of the new home.  The portability provision applies to all taxes, including school taxes. (For those who gave up their homestead in 2007 before the amendment was passed, the differential may be transferred if they apply for a new homestead January 1, 2008 or January 1, 2009.)

3.	Tangible Personal Property Exemption
A $25,000 exemption is provided for each tangible personal property return. The new exemption applies to all taxes.

4.	Assessment Cap for Non-Homestead Property 
All non-homestead property will have a 10% assessment cap (similar to Save Our Homes), but the new cap will apply only to non-school levies. The 10% cap sunsets after 10 years, and will be submitted to the voters for re-approval. Most residential properties will be reassessed at just value when they are sold; commercial property and residential properties with 10 or more units will be reassessed after a significant improvement or a sale.  This provision will not take effect until the 2009 tax roll, and it does not apply to school taxes.

5.	Fiscally Constrained Counties 
SB 4-D also requires an annual appropriation to fiscally constrained counties to make up for revenue reductions resulting from the adoption of the constitutional amendment by the voters.

I hope this helps you better understand what was just passed by your legislators and assists you when you are asked to vote on the proposed constitutional amendment in January.

On a separate note, please continue to log on to the CAN website at http://www.canfl.com for all the latest news and updates. The number of vendors eager to offer special services and discounts to our CAN members continues to grow. To see a full list of participating vendors, pleaes click on the Affinity Program tab. Also, make sure to check out our latest feature, our Ask The Expert page, where you can ask questions to a number of these participating Affinity Program vendors. The current question was asked by a community whose bulk cable contract is expiring soon.

Lastly, please take a moment to visit this month's Legislator Spotlight on the CAN website at http://www.canfl.com.  The Community Advocacy Network is proud to spotlight Senator Bill Posey (R-Rockledge). Senator Posey has been a true champion of common interest ownership communities in Florida as evidenced by both his voting record and the bills he sponsors.

As always, I look forward to hearing from you and keeping you updated on information that impacts your communities.

Very Truly Yours,
		
Donna D. Berger, Esq.
Executive Director of the Community Advocacy Network (CAN)
Telephone: 954.486.7774 
Facsimile:   954.486.7782
Web: www.canfl.com
Email: dberger@canfl.com

For more information, please contact Donna Berger at 954-486-7774 or via email at dberger@canfl.com