FLORIDA – A state policy research institute said Florida counties will have $406 million less in property tax revenue over the next five years after Amendment 5 passed.
RELATED | Florida Amendments: Here’s which ones failed and which ones passed
Recommended Videos
The Florida Policy Institute (FPI) describes itself as an independent, nonpartisan and nonprofit organization dedicated to advancing state policies that improve the quality of life for all Floridians.
It released a statement after the amendment passed.
Under Amendment 5, Florida counties will collectively have $406 million less in property tax revenue over the next five years alone, according to a recent analysis by state economists. Cities and towns will either have to cut public services funding — dollars that go to things like water, sewer, and emergency services, to name just a few — or raise taxes in order to balance local budgets. While local governments grapple with this reduction in revenue, Floridians will see only modest relief under Amendment 5, as FPI estimates that the 4.3 million households eligible for this inflation-adjusted homestead exemption will see an average of just $20 in savings over the next five years. Plus, since this is not targeted property tax relief, the wealthiest families in the state are among those who will benefit, while small business owners and renters are left out.
Florida Policy Insitute
Amendment 5 will add language to the constitution to adjust the value of homestead exemptions, tying the changes to inflation.
Election Results 2024: Complete results for president, Florida, Georgia races
A homestead exemption reduces a property’s taxable value for the homeowner as long as the property is the homeowner’s permanent residence.
Since it passed, the first $25,000 of a homestead exemption will be indexed with inflation, so when inflation goes up, the homestead exemption goes up as well. The amount of the exemption might increase as costs and prices go up.