Broward County Property Appraiser's Network

PROPOSED PROPERTY TAX-RELATED
FLORIDA CONSTITUTIONAL AMENDMENTS
ON THE NOVEMBER 6, 2012 BALLOT:

Amendment 2 - Veterans Disabled Due to Combat Injury; Homestead Property Tax Discount

Amendment 2 relaxes the eligibility requirements for an existing property tax discount offered to disabled veterans. Currently, disabled veterans who meet the following four requirements are eligible for a property tax discount commensurate with the degree of their disability: 1) current Florida resident; 2) 65 or older; 3) disabled in combat; 4) Florida resident when they entered the military. If passed, Amendment 2 would eliminate that fourth eligibility requirement. As an example of how it works, a veteran eligible for the discount with a 50 percent disability can claim 50 percent off the assessed value of his home. Roughly 1,200 veterans received that discount in 2010, allowing them to subtract, on average, $24,000 from their home’s value before property taxes were calculated. This proposed amendment would give that same tax break to veterans, age 65 and older, who were disabled in combat but living in another state when they entered the military so long as they now claim Florida residency. The state estimates that if Amendment 2 passes, school districts and local governments would lose a total of $15 million over the first three years.

Amendment 4 - Property Tax Limitation; Property Value Decline; Reduction for Non-Homestead Assessment Increases; Delay of Scheduled Repeal

This proposal would extend tax breaks to property owners and to first-time homebuyers. If passed, it would: 1) prevent the assessed value of homesteaded and specified non-homesteaded properties from increasing if the market value of that property decreases compared to the previous year. This would allow the Legislature to eliminate a provision in the current law known as “recapture,” which can cause the taxable value of a property to rise even if its market value drops; 2) reduce from 10 percent to 5 percent the cap on annual increases in the assessments of specified non-homesteaded properties such as residential rental property, seasonal homes and commercial property; 3) authorize a homestead exemption to first-time homebuyers or to buyers who have not owned property during the previous three years or longer. The exemption would phase out over five years and be equal to 50 percent of the market value of the property but not greater than the median market value of all homesteaded properties in the county where the property is located; 4) delay until 2013 the scheduled repeal of assessment caps on certain types of non-homesteaded properties. Proponents say the tax breaks will stimulate the housing and commercial real estate markets. They also say it will help property owners in a down economy. Critics say the proposal will hurt cash-strapped school districts, cities and counties already forced to cut services. Total tax revenue losses to local governments and schools over a three-year period have been estimated at nearly $1 billion.

Amendment 9 - Homestead Property Tax Exemption for Surviving Spouse of Military Veteran or First Responder

Amendment 9 grants full homestead property tax relief to the surviving spouses of military veterans who die from service-connected causes while on active duty, and to the surviving spouses of police, fire fighters and other first responders who die in the line of duty. In short, the surviving spouses deemed eligible will not pay any property taxes. For a spouse to be eligible, the deceased veteran or first responder must have been a permanent resident of Florida as of Jan. 1 of the year he or she died. That same residency requirement applies to the surviving spouses of first responders. First responders are defined as law enforcement officers, correctional officers, firefighters, emergency medical technicians and paramedics. The proposed amendment covers full-time, part-time or volunteer first responders. State law has granted full homestead property tax relief to surviving military spouses since 1997. This proposed amendment enshrines that exemption in the state Constitution while adding eligibility to the spouses of first responders. Surviving spouses of veterans or first responders who died years ago can apply for eligibility retroactively if Amendment 9 passes, although the tax relief is for future taxes only; they will not receive refunds for any past taxes paid. The state estimates that this amendment, if passed, would reduce local school and government tax revenues by about $600,000 statewide in the first year it is in effect.

Amendment 10 - Tangible Personal Property Tax Exemption

Most taxpayers are familiar with paying property taxes on a home. This proposed amendment is about taxes assessed on tangible personal property used in a business or to earn income. Furniture, fixtures, machinery, tools, shelving, signs and equipment are examples of property that is subject to the state’s tangible personal property tax. By April 1 of each year, anyone owning tangible personal property that is used in a business or to earn income must file a return with the local property appraiser. Under current law, the first $25,000 of tangible personal property is exempt from taxation. If passed, Amendment 10 would boost that exemption to $50,000. It would also allow cities and counties to grant additional tangible personal tax exemptions beyond the $50,000 exemption. The state estimates that tangible personal property taxes represented an estimated 7.6 percent of the total county property taxes levied in Florida in fiscal year 2011-12. The corresponding amount for cities was 6.1 percent. Statewide, if Amendment 10 passes, the added exemption amount proposed would reduce property tax collections by $61 million over the first three years combined, according to state estimates. Supporters say it will help small businesses. Opponents question whether it will benefit the economy and warn it will further erode the local tax base.

Amendment 11 - Additional Homestead Exemption; Low-Income Seniors Who Maintain Long-Term Residency on Property; Equal to Assessed Value

Amendment 11 authorizes cities and counties to grant full homestead property tax relief to low-income seniors who have lived in their home for at least 25 years. In short, it would eliminate the entire property tax bill for qualifying seniors. Homeowners who meet the following requirements would be eligible: 1) aged 65 and older; 2) have a household income of less than $27,590; 3) own a home with a market value of less than $250,000; 4) have lived in the home for at least 25 years. City councils and county commissions must pass the exemption by a supermajority vote before the full exemption can be offered. The state estimates that the tax revenues local governments would lose if Amendment 11 passes, and if every city and county in the state were to approve the exemption, would be a combined $18.5 million over the first two years it was offered.

Learn more about these proposed ballot issues from
the non-partisan League of Women Voters or
from the Collins Center for Public Policy.

The Florida Legislature adopted several changes
in state law during the 2012 Session
impacting property tax and exemption laws
(note: some require voter approval in November 2012).
CLICK HERE TO READ THE
2012 LEGISLATIVE SUMMARY

Click Here to Find Your Legislators

The Florida Senate

The Florida House of Representatives

Broward County Legislative Delegation Office

Research Florida Statutes (Laws) and the Florida Constitution

Florida Department of Revenue: Tax Law Library

For more info about our office's current legislative concerns, please contact:
General Counsel Mila Schwartzreich: or call 954.357.6934