The amount of property taxes a property owner pays is based on the assessed value of their property less applicable exemptions and classifications.
Non-homesteaded property is property that is not a person’s primary residence and is not protected by the homestead exemption. Non-homesteaded property can include, but is not limited to, commercial property, rental property and second homes.
In 2008, the Florida electorate voted to amend Florida’s Constitution to provide for a 10 percent cap on the assessed value of non-homesteaded property. The cap does not apply to the value taxed by the school district. This cap leads to a reduced tax bill with significant savings for many property owners. The 10 percent cap on non-homestead property is set to expire in 2019. If the 10 percent cap expires, then all non-homesteaded property owners will have their properties reassessed to market value and many will see a substantial increase in their property tax bill.
Hypothetically, if the 10 percent cap were eliminated today, approximately 170,000 non-homesteaded Broward County property owners would see an increase in their taxes, with some of these increases being significant. Based on current data and tax rates, these 170,000 non-homesteaded property owners would be responsible for paying their share of an estimated $88,500,000 tax increase.
Higher property taxes on non-homestead property could have negative ripple effects on our local economy. Landlords may increase rents and many businesses may pass the tax increase on to consumers by increasing the price of goods and services.
The Florida Legislature has placed a proposed amendment to Florida’s Constitution on the November 2018 general election ballot. Amendment 2 would eliminate the expiration provisions currently in place and extend indefinitely the 10 percent cap on non-homestead property. For Amendment 2 to pass into law, more than 60 percent of the votes cast must be in favor of Amendment 2. I strongly urge you to vote “YES” in favor of Amendment 2.
Marty Kiar is Broward County Property Appraiser.
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