WEST PALM BEACH, Fla. — The victory of Amendment 5 in Florida is being touted as a win for lowering taxes for homeowners. Now approved and ready to take effect Jan. 1, the amendment will adjust the homestead exemption according to inflation.
Typically, the exemption is at $50,000, allowing for example a $300,000 home to be assessed at $250,000. As the exemption goes higher, it could mean savings on property taxes.
"I think whenever you can help people own a home, that's ideally a goal," Florida CEO Jimmy Patronis said.
However, 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," former Palm Beach County Commissioner Melissa McKinlay said.
The Florida Policy Project estimates that counties across the state will lose 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 countries plenty of tools in order to create revenue, in order to take care of their citizens,” Patronis said.
