What you should do to receive benefits of Amendment 1

To receive some of the benefits of the changes enacted January 29th, certain citizens must take action by March 1, 2008.

The Constitutional amendment created four new opportunities for taxpayers to obtain tax relief:

1.    Increased homestead exemption

2.    Portability of “Save our Homes” benefit

3.    $25,000 exemption for tangible personal property

4.    10% annual assessment limitation for non-homestead property

What taxpayers must do to receive these new benefits:

1.       Increased homestead exemption – Homeowners that are currently receiving the homestead exemption will automatically receive the increased homestead exemption. No action is necessary.

2.       Portability of “Save our Homes” benefits – If you received the homestead exemption in 2007 on a home that you sold or otherwise abandoned during 2007 and have purchased a new home by January 1, 2008, you are eligible to take some or all of the benefit of “Save our Homes” to your new home. In order to receive this benefit, you must apply by March 1, 2008 to your property appraiser for your new homestead exemption and for the transfer of the “Save Our Homes” benefit to your new homestead for 2008. Form DR501t is attached. We would recommend that REALTORS® call their 2007 clients who sold a homestead and bought a new one to make certain they are aware of the filing requirement.

3.       $25,000 exemption for tangible personal property – Tangible personal property taxes apply only to certain taxpayers in Florida – typically businesses and certain owners of mobile homes. The tax does not apply to homesteaded property. In order to receive the $25,000 exemption for tangible personal property, taxpayers subject to the tax must file a tangible personal property return with their property appraiser by April 1, 2008.

4.       10% limit on annual assessment increases for non-homestead property – The 10% limitation does not apply until next year. No application is necessary for 2008.