Annual Adjustments to the Value of Certain Homestead Exemptions
The information on this page was provided by the nonpartisan League of Women Voters of Florida.
Ballot Language
Proposing an amendment to the State Constitution to require an annual adjustment for inflation to the value of current or future homestead exemptions that apply solely to levies other than school district levies and for which every person who has legal or equitable title to real estate and maintains thereon the permanent residence of the owner, or another person legally or naturally dependent upon the owner is eligible. This amendment takes effect January 1, 2025.
Synopsis
Property taxes (millage rates) are set by counties, school districts, cities, and special districts. Homes in Florida are assessed at just value or market value minus the homestead exemption. The homestead exemption reduces the taxable value of a property. A primary residence is eligible for a $25,000 homestead exemption from all property taxes. For homestead’s value between $50,000 and $75,000, another $25,000 homestead exemption is applied, which exempts that amount from all property taxes, except school district taxes.
This amendment would apply an annual inflation adjustment for the property tax exemption applied to the value of the homestead between $50,000 and $75,000. The adjustment would be made every year on January 1 (beginning 2025) based on the percent change in the Consumer Price Index (CPI) reported by the U.S. Department of Labor. The adjustment would occur only if the CPI increases. There is no adjustment if the CPI decreases.
This amendment would decrease the amount of tax dollars available for counties, cities and special districts budgets for programs and services. Although there would be no impact to school district taxes, the estimated impact on non-school local government property taxes in Fiscal Year 2025-26 (the first year of implementation) would be an approximate reduction of $22.8 million in tax revenue, growing to an approximate reduction of $111.8 million in 2028-29, assuming current tax rates.
This amendment was referred to the ballot by the 2024 Florida Legislature. (Senate: 25 Yes to 15 No; House: 86 Yes to 29 No)
Supporters, including the majority of the Florida Legislature, say the amendment could lead to more savings for property owners who apply for homestead property tax exemptions.
Opponents, including the League of Cities, say the amendment would reduce revenue available to cities and counties by millions of dollars.
A Yes Vote Would…: Increase the homestead exemption amount each January 1, beginning 2025, if the Consumer Price Index increases, thereby reducing the amount of property taxes on primary residences and reducing the amount of tax dollars available for county, city and special district programs and services.
A No Vote Would…: Leave the current homestead exemption amount as is.
The information on this page was provided by the nonpartisan League of Women Voters of Florida.
