In a bid to encourage more people to purchase properties in Florida, it has been announced that registered voters in the state will be asked to vote on a proposal which aims to change how property taxes are assessed in the region.
In addition to making it more attractive to purchase a property in Florida, the amendment to the state’s constitution will also look to eliminate what is known as the ‘Recapture Rule’, which has, in the past, allowed higher taxes to be collected on properties that have been shown to be losing market value.
The ‘Recapture Rule’ was first approved in the early 1990s by the Florida Cabinet but speaking about the move to address the issue, Senator Mike Fasano said: “Residents who have owned their homes for many years are penalized during downturns in the economy by property taxes that continue to rise, even as the value of their homes fall.” He continued: “This tax burden hurts homeowners already hit by plummeting home values, rising insurance premiums, and the overall increases in the expense of owning and maintaining a house.”
It is also hoped that the amendment will help the real estate market, which has suffered something of a slump in recent years, by offering tax exemptions to people who are first-time buyers. Anyone who has not owned a property in Florida during the past three years will qualify. The amendment will also add to the current homestead exemption by giving people an additional 50% exemption on the appraised value of the property, with the exemption being phased out by 20% annually over five years.