LIMITATIONS ON PROPERTY TAX ASSESSMENTS
Amendment 2 would make permanent the cap of 10 percent on annual nonhomestead parcel assessment increases set to expire on January 1, 2019. The cap does not apply to school district taxes. Voters approved the cap in 2008, when 64 percent voted to pass Amendment 1.
Properties considered nonhomestead parcels include nonhomestead residential properties, such as second homes and rental apartments, and nonresidential property, such as commercial property and vacant land.
The exact ballot summary language reads:
"Proposing an amendment to the State Constitution to permanently retain provisions currently in effect, which limit property tax assessment increases on specified nonhomestead real property, except for school district taxes, to 10 percent each year. If approved, the amendment removes the scheduled repeal of such provisions in 2019 and shall take effect January 1, 2019."
During FAC's Annual Conference in June, the FAC Board of Directors voted to remain neutral in regard to Amendment 2.
Tenants can expect to see double-digit rent increases if Amendment 2 fails in November, warns one of the state's best-known research groups. Florida TaxWatch Tuesday released a study projecting that renters could see drastic hikes, if the amendment fails to get the 60 percent voter approval required for passage.
The Florida Realtors trade group this week began a push to pass Amendment 2, which gives voters the choice to make permanent a 10 percent cap on annual valuation increases for non-homestead properties. The measure will appear on the 2018 ballot, which also features a gubernatorial race.
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.
A new report says a constitutional amendment slated for the November ballot could save Florida taxpayers $700 million each year if approved. Amendment 2 would make permanent a 10 percent-cap on annual non-homestead property tax increases that was implemented by a constitutional amendment in 2008.