Raising the homestead exemption will help to address tax inequity and perverse incentives in Florida’s property tax system.
In 1992, voters approved the “Save our Homes” amendment that caps the annual assessment amount for property taxes at 3% or less. The first $50,000 of property value was also made exempt.
This has led to unequal tax burdens. Long-time residents enjoy low taxes relative to new arrivals. This is not problematic if the goal is to place more taxes on non-homestead properties like vacation homes, but it leads to inequities and creates perverse incentives…