Sometimes it Pays to Vote!

Sometimes it pays to vote.

With Amendment 1 on the Florida Midterm ballot this year, we thought it was a great opportunity to revisit Homestead Exemption; how it works, and why it is something you might want to take advantage of. You have probably seen far more political ads and posts than you can stand at this point. Don’t worry, we are not going to suggest which way to vote nor endorse any candidates, judges, parties, etc.

Amendment 1:

“Increased homestead exemption.—This section and the amendment to Section 6 of Article VII increasing the homestead exemption by exempting the assessed valuation of homestead property greater than $100,000 and up to $125,000 for all levies other than school district levies shall take effect January 1, 2019”

Because the text is written in Legalese, we’ll give you a summary. First, to get the examption you must: qualify, actively apply, and be approved for the Homestead Tax Exemption. Check out our prior blog about homestead tax exemption, who qualifies and how to take advantage of it here: http://www.jacksonvillehomes365.com/8298-2/

The points below assume that you and your property qualify and have been approved for the exemption.

1. Only the first $25,000 of assessed value is exempt from school levies. Nothing about that changes if Amendment 1 is approved. It only applies to non-school levies.

2. As of now, before any proposed changes, the first and third $25,000 of assessed value of your home is exempt from property tax. If your home is worth $25,000, you pay no property tax. If your home is assessed to be worth more than that, you pay tax on the amount between $25,000 and $50,000 and then nothing between $50,000 and $75,000.

3. If Amendment 1 passes, you would not owe tax on the value between $100,000 and $125,000. This would mean that you would only pay tax, at whatever your local rate is, on a total $50,000 of assessed value if your home is assessed at exactly $125,000.

4. If your home is assessed at less than $100,000 and you don’t expect to ever own a home that is, the proposed changes would not benefit you at all. If you do own, or if you expect to own, a home that would be assessed above $100,000, you would save money on your property taxes if the amendment is approved. This would mean a lower monthly payment for those who qualify, as property taxes are typically included in your mortgage payment via the escrow account.

The proponents of the amendment say that any tax savings is a good thing. The opponents point to current budget issues or new ones that could arise, and that the savings would not apply to everyone because some own homes below the threshold and others do not own homes. As promised, you’ll get nothing from us on the “yes” or “no” front. Whatever your opinion, make sure it is heard when it comes time to cast your ballot on November 6^th, or before then if you take advantage of early voting.