THE HONEST BROKER: ELECTION BALLOT INITIATIVES THAT CAN AFFECT REAL ESTATE TAXATION
BY: DIANE LOTT, BROKER
PARADISE FOUND REALTY
Lawmakers placed two proposed constitutional amendments on the ballot that would provide property-tax breaks. One of those measures, which will appear on the ballot as Amendment 1, would prevent properties’ assessed values from going up because of improvements aimed at combating flooding. The other proposed tax break, which will appear as Amendment 3, would expand the homestead property-tax exemption for teachers, first responders and military members. Each proposal would require approval from 60 percent of voters to pass.
AMENDMENT 1
Amendment 1, part of efforts to address the effects of rising sea levels and climate change, is aimed largely at helping property owners who elevate all or parts of their homes. If approved by voters, it would become “effective on January 1, 2023, and would prohibit the consideration of any change or improvement made to real property used for residential purposes to improve the property’s resistance to flood damage in determining the assessed value of such property for ad valorem taxation purposes.” Elevation work would require meeting National Flood Insurance Program and Florida Building Code standards.
Pros: Florida is uniquely at risk of flooding and sea level rise. Supporters argue that it will not only protect their property from flooding, but it will reward and incentivize them to do so.
Cons: Opponents argue that prohibiting improvements from taxation would ultimately reduce the amount of taxes that could be collected to fund local government services.
AMENDMENT 3
The proposed amendment would “grant an additional homestead tax exemption for non-school levies of up to $50,000 of the assessed value of homestead property owned by classroom teachers, law enforcement officers, correctional officers, firefighters, emergency medical technicians, paramedics, child welfare services professional, active-duty members of the US armed forces, and Florida Guard members.” Effective January 1, 2023. Supporters say it would help address rising housing costs. Under current law, homeowners can qualify for homestead exemptions on the first $25,000 of the appraised value of property
Pros: Under the proposal, homeowners in the targeted professions could receive a $50,000 exemption, which would apply to the property value between $100,000 and $150,000 for primary owned residences only.
Cons: Opponents argue that the amendment would reduce local property tax revenue (except for schools) jeopardizing the funds available for local government services and creating a tax policy that favors specific groups over others instead of addressing lowering property tax rates for all homesteaded property.
Email: Diane@ParadiseFoundRealtyFl.com
Website: www.ParadiseFoundRealtyFl.com
Phone: 954-294-5060
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