In a move that could potentially alleviate the escalating property tax burden on Florida homeowners, Governor Ron DeSantis has given his assent to a new bill.
This legislation comes in the wake of mounting housing costs, including soaring insurance premiums, that are currently plaguing homeowners in the state.
According to Newsweek, House Bill 7019, which was signed into law by the Republican governor last week, could herald a significant increase in Florida's homestead exemption. This bill had previously received approval from the Republican-dominated state legislature. The existing law permits homeowners in Florida to reduce the assessed value of their primary residence by up to $50,000, thereby decreasing their property tax liability.
The new legislation, set to appear on the ballot in November, proposes an inflation-based increase in the exemption granted to Florida homeowners. "Qualifying homeowners will receive an additional exemption of up to $25,000 on top of the $50,000, but the exact value will be based on the Consumer Price Index for All Urban Consumers (CPI-U)," the bill states. However, it also clarifies that this additional exemption will not be applicable to levies imposed by school districts, even if the bill secures voter approval.
By linking the exemption value to the CPI-U, Governor DeSantis and the Florida legislature aim to ensure the exemption's relevance, even in the face of a sudden surge in the cost of living.
Data from ATTOM Data Solutions for 2023 reveals that Florida's effective tax rate last year stood at 0.76 percent, placing it midway between the highest (Illinois, 1.88 percent) and the lowest (Hawaii, 0.31 percent) rates in the country. As of May's end, the average home value in Florida was $399,944, marking a 3.2 percent increase compared to the previous year, as per Zillow. Consequently, Florida homeowners were burdened with an average tax of $3,039 on the average home value.
Despite not having the highest property tax rates in the country, Florida homeowners are grappling with home insurance premiums that are four times the national average. The decision now rests with Florida voters, who will determine whether an increased homestead exemption, leading to reduced property taxes, is a welcome change. For the bill to pass, it requires approval from 60 percent of voters. It's worth noting that renters are excluded from the bill's provisions and will not benefit from any tax cuts.
As reported by NBC Miami, should the bill pass, the Florida government has already earmarked funds to aid counties expected to witness a significant drop in revenues.
The question now is whether Florida homeowners and voters will support HB 7019 in November. Their decision will undoubtedly have a profound impact on the state's property tax landscape.
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