Florida Lawmakers Clash Over Property Tax Relief Options

It’s nearly winter, but the Sunshine State is heating up as lawmakers clash over property tax relief proposals. Lawmakers have only agreed to disagree on which proposal should appear on voters’ ballots. If they can’t reach a consensus, Floridians could be left with as many as six different proposals to vote on. Let’s take a look at each of these and see why more isn’t always merrier.

Florida’s Growth Drives Property Tax Hikes

Florida has one of the fastest growing populations in the country, and for good reason. Not only does it boast no state income tax, but it also has low property taxes compared to other states. Florida Tax Rates & Rankings | Florida Taxes. However, the rise in population has also increased local government funding requirements. This has resulted in sharp property tax increases over the past few years. Florida property owners aren’t happy about it, and legislatures have begun floating around proposals to reduce their’ property tax burdens.

Property Tax Relief Proposals

HB 215: Expanding Homestead Exemption

HB 215 is a bill would permit married couples to combine their homestead exemptions, providing up to $500,000 in protected home value. While this proposal wouldn’t require voter approval, a two-thirds majority in the legislature would be needed for it to pass. Proponents argue that it is the most financially sustainable, but critics note it would not provide as much relief as the alternatives.

HJR 213

This would restrict the rate at which assessments can increase. If passed, HJR 213 would cap assessment increases to 3% every three years. The current annual rate under the Save Our Homes limitation is the lower of 3% or the consumer price index. This measure has the potential to provide significant tax savings in the long run without divesting local governments of funding.

HJR 211

This proposal would remove the cap on portability, which is the ability of Florida homeowners to transfer their accumulated Save Our Homes benefit when they move from one homesteaded property to another within the state. While this proposal would provide tax savings for current homeowners, it wouldn’t help those looking to buy their first home.

HJR 209

This would create a $100,000 property tax exemption for the portion of taxes not used to fund schools. Notably, the exemption would only apply for homeowners with full property insurance coverage. HJR 209 has the potential to offer significant relief, but its restrictions dampen how much property owners would ultimately save.

HJR 207

Similar to HJR 209, this proposal would create an exemption for the portion of property taxes not used to fund schools. There are two main differences to HJR 209. First, this proposal doesn’t have an insurance requirement. Second, it caps the exemption at 25% of a home’s assessed value rather than a specific dollar amount. This alternative could offer homeowners more flexibility, but limiting the exemption to the non-school portion of property taxes limits potential savings.

HJR 205

This proposal would allow seniors aged 65 and older to receive a full exemption on the non-school portion of property taxes. This would offer senior homeowners with significant tax relief but wouldn’t provide relief for non-seniors. Further, some have raised concerns of a possible “lock in” effect where seniors may have less of an incentive to downsize.

HJR 203

Last but far from least, HJR 203 would phase out all non-school property taxes over a ten year period. While it would provide the most relief to homeowners in the short term, critics warn that it is the least financially sustainable because it would significantly impair local government funding.

Too Many Proposals?

Several of these proposals could find their way on a future ballot. While having multiple options may sound like it would benefit Floridians, it actually decreases the likelihood of any one proposal receiving the required percentage of votes. Each require 60% of voters to approve. The more options available, the more likely that votes will be spread out, lowering the chances of any proposal receiving the required 60%. All in all, more options on the ballot could result in Floridians losing any chance of receiving property tax relief.

Click here to read more: Florida’s Property Tax Battle: Which Plan Offers the Most Relief?