PROView - March 2008 - (Page 6)

PROActive Amendment 1 Passes: What Now? What’s Next? by Mike Mayo, Director of Public Affairs Amendment 1 passed decisively on January 29 with 64% of the statewide vote. People keep asking two questions: What now, and what’s next? First, let’s briefly discuss what voters approved January 29. The main components of the projected $9.3-billion property tax cut Amendment include: owners with less than $25,000 worth of tangible personal property will no longer have to file returns, completely removing this administrative burden. This provision takes effect retroactively to January 1, 2008. Assessment Cap for Non-Homestead Property This provision limits the annual growth in assessed value of non-homestead property to 10% per year. The 10% cap will sunset after 10 years, at which time it will be presented to voters for re-authorization. This cap does not apply to school taxes, and goes into effect January 1, 2009. The cap will use a base year of 2008, which means the cap will begin shielding properties from taxation in 2009. Residential properties of nine (9) units or less will surrender accumulated protections at change of ownership or control. For all other properties – residential properties of ten or more units and business properties – the Legislature must define by general law how the property will surrender accumulated protections at change of ownership or control. Amendment 1 Implementation: What Now? In addition to the wealth of information available on FAR’s website, the Florida Department of Revenue has created an excellent site consisting of “Amendment 1 Implementation Information”: http://dor.myflorida.com/ dor/property/sb4d.html Included on the site are documents related to the additional Homestead Exemption and Portability, including: a portability application form; Certificate for Transfer of Homestead Assessment Difference; and Portability Frequently Asked Questions. Property Tax Reform: What’s Next? While Amendment 1 may be a step in the right direction, more work on property tax relief and reform needs to be done. FAR will be working with the Legislature during the 2008 Session, and with the Florida Taxation and Budget Reform Commission, for further relief. March 2008 Increasing the Homestead Exemption An additional $25,000 homestead exemption is provided for the value of property between $50,000 and $75,000. Be advised, this increase does not apply to school taxes, which is approximately 40% of your property tax bill. The provision takes effect “Arguably the Amendment’s most retroactively to January 1, 2008. All persons currently significant component, the Save receiving a homestead exemption and who continue Our Homes portability provision is to qualify for the exemption designed to alleviate the “lock-in” will automatically qualify effect that punishes many people to receive the additional exemption. No further for moving. “ application will be necessary. “Save Our Homes” Portability Arguably the Amendment’s most significant component, this provision is designed to alleviate the “lock-in” effect that punishes many people for moving. Homeowners may now transfer their accumulated Save Our Homes (SOH) benefit to a new homestead anywhere in Florida within two years of leaving their former homestead. Those who sold their homes in 2007 can transfer their SOH benefit to a new homestead if they establish it by January 1, 2009. There is no limit on how many times an owner can transfer or “port” the accumulated savings. And, this provision applies to all taxes - including school taxes. For more information about calculating portability, visit FAR’s website: www.floridarealtors.org, “Legislative Center”, “Top Initiatives”. A “portability calculator” is also available on the Property Appraiser’s website: www.pcpao.org Tangible Personal Property Tax Exemption The Amendment also includes a $25,000 tangible personal property tax exemption. Property and business 6 PINELLAS REALTOR® ORGANIZATION http://dor.myflorida.com/dor/property/sb4d.html http://dor.myflorida.com/dor/property/sb4d.html http://www.floridarealtors.org http://www.pcpao.org

Table of Contents Feed for the Digital Edition of PROView - March 2008

PROView - March 2008 Contents Chairman's Notes - A Strong Force, Working on Your Behalf Feature - Going Back to Basics: Are You Generating Leads ProActive - Amendment 1 Passes: What Now? What's Next? Finance - How Your Customers Can Find Home Loans Brokerage Design - Reject the Blindfold; Enlightenment is the Way to Go Marketplace Analysis - The Opportunity Market Home Sales Report MLS Update - Changes to Rules & Regulations Now in Effect MLS Mind Your Manners Education - Don't Let Time Run Out: Complete Mandatory Code of Ethics Training Now Calendar of Events & Programs PROBiz - FREE Real Estate Websites! New PRO Members

PROView - March 2008

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