Florida's Amendment 1 - What It Means to You

On 29 January voters said loud and clear. Amendment 1 passed with nearly 65% of the vote - an astounding percentage. In the course of Amendment 1 is, many people we will get some important changes in their tax bills. Are you one of them? Here are quick overview of the four sections of Amendment 1, what each section, and how they apply to you.

Part 1: Extent

The first part of Amendment 1, those who one night for an exemption to transfer their children's villages receivedBenefits for a new home under certain conditions. Under the old system, many people were "trapped" in their homes - not able to move themselves, because a move would mean a drastic increase in their taxes. The sharp increase in taxes was due to the annual 3% cap that re dedicated a homesteaded property. So, if property values by more than 3% per year, a homesteaded property estimation from limited to 3%. You can see that would see homeowners who have resided in a home for a number of yearssubstantial tax benefits by a lower value assessed. Under the old plan, every time you bought a new home, you lost any accumulated tax benefit from your old home and the appraised value back on the market value of your new home.

Under the new change, you get your accumulated tax benefit with you as long as valid, as it will be implemented in another property within two years. A seller of liberation in 2007 had court, and that is either sold or abandoned their property in 2007 willEntitled to take their Save Our Homes benefit with them if they move a new home in 2008 and apply for homestead portability. Starting in 2008, can you take your children's villages to benefit as long as you save as you transfer within the same year or the next few years.

To receive this benefit, you must have with the 1st March 2008 to apply your property assessor for the new homestead exemption and for the transfer of the Save Our Homes "benefit to the new home for the year 2008.

Totake the advantages of mobility, you have to make two separate applications - one for the new homestead exemption, and one to transfer the Save Our Homes benefits for 2008. Here you will find the application forms DR-501T and DR-501R on the Florida Department of Revenue Web site.

Here's a short FAQ is on portability:

1. How much is the portability benefit worth?

You can profit up to U.S. $ 500,000 of portability to a new home. If the new homestead is worth morethan the old one, you transfer the dollar amount. If the new homestead is worth less than you must stop right, transfer the percentage. For example: Your current home will be valued at U.S. $ 300,000, but under Save Our Homes from $ 150,000, which liberated. If you are considering moving to a new home, which is valued at 500,000 U.S. dollars will benefit their portability, $ 150,000. If you are moving to be a new home, which is valued at U.S. $ 200,000, your portability benefit, 50% or U.S. $ 100,000.

2. Is the change of Homesteadand the transfer of Save Our Homes automatic?

No, you must apply separately for each benefit.

3. How do I apply for portability?

Simply turn the completed application form the office of county assessor in the province in which your new homestead is located.

4. Is portability only apply if I buy a new house?

No, if you already own a second property, you can transfer your homestead exemption from property to the other and transfer the Save Our Homesbenefit. Note that your property must be homesteaded your principal residence.

5.Am I eligible for portability this year?

If you are registered enter your old homestead after 1 January 2007, claiming a new home for the year 2008, you are entitled, but you have your application for the portability of 3 March 2008 file.

Part 2: Additional $ 25,000 Homestead Exemption

The second part of Amendment 1 is an additional $ 25,000 homestead exemption. The exception isavailable to anyone who already mobilizing the original $ 25,000 exemption. To assert this, you need to do nothing. It will be automatically applied to your tax 2008th In Hillsborough County, the average savings will be $ 250-300 per household. This is how it is calculated as follows:

Initial value of 25,000 - exempt from all taxes

Second value of 25,000 - a fully taxable

Third 25,000 value - exempted from all taxes except school taxes

Why is not there25,000 seconds to exempt from value? It is designed to protect towns and cities in Florida that may have many lower assessed property values, particularly in rural areas. If the exception applied by the second value of 25,000, many of these cities and towns would not collect enough revenue to run their local governments.

Why does the second 25,000 exemption still allow for schools to have taxes collected? Simple answer is that the revenue is needed to fund ourschools.

Part 3: Tangible Personal Property Exemption

According to the DOR:

Tangible personal property is all goods, chattels, and other articles of value. It includes: machinery, equipment, furniture, fixtures, signs, window air conditioners, supplies, leased, loaned, borrowed, or rented equipment used in a business, mobile home attachments on rented land (carport, screened porch, Florida room, etc.) furniture and appliances in rental properties.

The third Part of Amendment 1, a $ 25,000 exemption on all tangible personal property. Business owners need to ask the TPP return and finish it by 1 April of each year. If it is found that all of your tangible personal property is less than $ 25,000, you will not even submit. The first 25,000 dollars of tangible personal property exempt from taxation under Amendment 1

Part 4: 10% non-homestead assessment CAP

The last part of the amendment is a limitation of 10% Evaluation of Non-HomesteadProperty, both residential and non-residential buildings. From 1 January 2008 state law requires that all non-farm property valued at market value only, and are reviewed annually, but the change in the valuation may not exceed 10% of the current estimate and the estimate must not exceed the market value. In 2009, owners of non-farm property in a position for the 10% non-farm evaluation of CAP.

In practice, this means that from January1, 2008, the assessed value of your property is not equal to the market value homestead. If your property is estimated at $ 350,000, it will be valued at $ 350,000 for tax purposes. In the year 2009 may, if you opt for the 10% CAP, not the property appraisal to be higher than $ 385,000 - 10% above the estimate this year - no matter how much the market value increases. If the market value of the property is less than the then assessed value can not be higher than the marketWorth.

Here you will find all forms needed to apply for the various exemptions at the DOR website or the website of your county Referee website.

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