Portability exemption retroactive to 2007

As you go to the polls to vote next Tuesday, Jan. 29, I wanted to remind you of the provisions of Amendment 1. These are the key elements for taxpayers in this package - things that Floridians have told us they wanted.

Portability: A universally agreed upon aspect of the plan. The amendment eliminates the "lock-in-effect" of Save Our Homes (SOH). Homeowners will no longer be trapped in their homes because of the increase in property taxes they would incur if they moved. If "upsizing," the homestead owner can transfer 100 percent of the SOH benefit, and if "downsizing," the homestead owner can transfer SOH benefit that protects the same percentage of value as it did the former homestead. This provision would be retroactive and apply to those who sold their homes in 2007. The hope is that this will stimulate the real estate market and help spark the state's economy.

Additional Homestead Exemption: $25,000 exemption applied to assessed value above $50,000. This will result in savings for every homestead property owner in the state. This exemption does not apply to school tax levies. The average savings from the additional homestead exemption is $240 per year.

Ford

Cap on Assessments for Non-Homesteaded Properties: Florida property owners who have seen their property assessments double and triple in a single year will now see a cap on at least some of their property assessments. This cap will limit any increases to 10 percent per year. Providing a cap in any form is a realization that government spending has grown too fast and is too heavy a burden on small business, renters and snowbirds and must be contained if we are going to have a chance to revive Florida's economy. A cap brings some predictability and stability for non-homestead property owners and allows them to make investments and hiring decisions knowing with some certainty that their tax bills will not be unaffordable next year. While certainly not the cap we proposed, the House's leadership on this issue is the primary reason that any cap at all made it into the final package.

Tangible Personal Property Exemption: Property owners (specifically small businesses) with tangible personal property valued at less than $25,000 will no longer have to file detailed returns, alleviating an often cumbersome administrative burden.

The estimated tax reduction over the next five years, if this amendment passes, would be $9.305 billion. A good first step but not the end of the road, the people of Florida deserve more relief. The leadership in the House is committed to find ways to bring further property tax relief. Also, the Tax and Budget Reform Commission is currently considering property tax reform as part of their agenda for the November 2008 ballot. Our dedication to fighting for property tax relief continues. We will not lose sight of the fact that these tax cuts are a start toward the goal of getting Florida's economy back on track. It's the people's money, and we will keep fighting to let them keep more of it.

Write Representative Ford at: 1804 W. Garden St., Pensacola, FL32501.