The victory of Amendment 5 in Florida is being touted as win for lowering taxes for homeowners.
Now approved and ready to take effect on Jan. 1, the amendment will adjust the homestead exemption according to inflation.
Typically the exemption is at $50,000, allowing a $300,000 home, for example, to be assessed at $250,000.
As the exemption goes higher, it could mean savings on property taxes.
Elections Local
What is Amendment 5 and would it help Florida homeowners?
“I think whenever you can help people own a home that’s ideally a goal,” said Florida CFO Jimmy Patronis.
There is some concern to the Republican-backed amendment.
“It’s a tax cut for homeowners, it’s a loss in revenue for local government," said former Palm Beach County Commissioner Melissa McKinlay.
One estimate from the Florida Policy Project has counties across the state losing over $400 million in revenue over the next five years.
“Those dollars are what’s used to pay law enforcement, our fire rescue, help our roads, water infrastructure, everything else that local governments are required to do,” McKinlay said.
That could leave affected counties with some tough choices.
“I think at the end of the day we have given the counties plenty of tools in order to create revenue in order to take care of their citizens,” said Patronis.
