Florida to Decide on the Homestead Property Tax Exemption in Amendment 5

On November 5, Florida residents will not only vote in the presidential election but also weigh in on six proposed amendments to the state’s constitution.

Overview of Amendment 5

One of these, Amendment 5, seeks to make adjustments to the state’s homestead property tax exemption. The homestead exemption currently allows homeowners to reduce the taxable value of their properties, thereby lowering their property tax burden. If passed, this amendment would introduce an annual adjustment to the exemption based on inflation. Approximately 450,000 families in Miami-Dade County currently benefit from the homestead exemption, which offers a tax reduction of up to $50,000 on the taxable value of homes. The proposal aims to further alleviate property tax burdens by increasing the exemption in line with inflation.

What Amendment 5 Entails

The homestead exemption in Florida allows homeowners to lower their home’s taxable value by $50,000. For instance, if a house is valued at $300,000, the owner would pay taxes on $250,000. The exemption is split into two parts: one portion applies to taxes that fund school districts, while the other applies to non-school-related taxes. Amendment 5 proposes that the $25,000 exemption for non-school taxes be adjusted annually to reflect changes in the Consumer Price Index (CPI), ensuring that the exemption keeps pace with inflation.

This means that if inflation rises by 4%, the non-school portion of the homestead exemption would also increase by a similar rate, potentially lowering homeowners’ tax burdens. The goal is to protect homeowners from rising costs and provide consistent tax relief.

The ballot language voters will see reads: “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… This amendment takes effect January 1, 2025.” A “yes” vote supports adjusting the exemption annually, while a “no” vote opposes it.

Potential Impacts

If Amendment 5 passes, it could bring significant financial relief to many families in Florida, particularly in high-cost areas like Miami-Dade County. A local homeowner, John White remarked, “Anytime you hear about an initiative or success in getting taxes reduced on any level is great and incentivizes people to come and be property owners in Florida.” However, there are concerns about the potential consequences. Local governments, especially counties, rely heavily on property taxes to fund essential services like police, fire departments, and libraries. Reducing tax revenue could strain these services.

In addition, renters—such as apartment residents—would not benefit from the tax cut, leading some to worry that they might bear the brunt of any financial shortfalls. As Orlando-area Representative Anna Eskamani, a renter herself, pointed out, “I see this as less of a tax cut and more of a tax shift where folks that are not property owners would end up having to make up the difference.” To mitigate revenue losses, the state has set aside funds to help rural counties that may experience significant reductions in their tax base due to the amendment.

How Amendment 5 Can Pass?

For Amendment 5 to take effect, at least 60% of voters must approve it. Should it pass, the inflation-adjusted exemption would begin on January 1, 2025, potentially changing the landscape of property taxes in Florida and offering a cushion for homeowners against rising costs.