Broward County Property Appraiser Lori Parrish answers your questions about tax reform and the proposed Constitutional Amendment

Many Questions Remain With Tax Reform Measures...Lori Parrish answers

Dear Lori:
I’ve just left a meeting of tax reformers in Deerfield Beach, and this all seems very confusing. We didn’t realize it will eliminate Save Our Homes, by choice or by attrition. And choosing the alternative tax plan may end up costing homeowners more money after 5 or 6 years. Can you help us explain these tax reforms? C. Greenberg, Broward County, FL (via email)

First, understand the Florida Legislature passed two separate property tax relief measures: one is a statutory roll back of spending and the other is a proposed 2008 constitutional amendment. Both are very complex and difficult to understand. Cities, counties and special districts are required to cut this year’s property taxes by 3% - 9% from the “rolled back rate” (meaning the amount levied last year plus new construction). Also, the faster a government’s taxes have risen, the higher the cut. School districts are exempt from this statutory measure, plus the formula exempted a few Broward cities from making any cuts. This statutory cap can be overridden up to 10% by a 2/3 vote of the governing board. Any change above 10% requires a unanimous vote of the board or a referendum.

Second, on January 29, 2008, Florida voters will consider a proposed constitutional amendment to create a new Homestead Exemption ranging from $50,000 to $195,000. This so-called “Super Exemption” is designed to replace the current Homestead Exemption and gradually replace Save Our Homes. If approved, homeowners can decide if they want to make an irrevocable, one time decision to take the new exemption or keep the current Save Our Homes assessment cap. When a homeowner moves, dies or transfers title, they will lose SOH and start fresh with the new exemption. First-time and new homeowners will only be eligible for the new exemption. Initial calculations show a large number of Broward homeowners would continue to save more in taxes under the current law. Also, the proposed amendment offers no relief for renters, snowbirds and commercial property owners.

The bottom line is the statutory tax roll back law takes effect this year – but it cannot yet be determined if or how much you will individually save on your November tax bill, please watch for your TRIM (proposed tax notice) in August, 2007 for specific tax information. Voters will cast ballots on the proposed constitutional amendment in January 2008. We’ve posted full copies of the property tax roll-back law and the proposed amendment on our website at www.bcpa.net and will soon have an interactive calculator to compare how much you’d save – if any – under the competing options.

Sincerely,

Lori Parrish, CFA

If you have any questions for Lori, please email her at lori@bcpa.net, or write her at the Broward County Property Appraiser’s Office, 115 South Andrews Avenue, Room 111, Fort Lauderdale, Florida 33301