Amber HughesLegislative Advocate

AMENDMENT 4:How Will It Affect Cities?

John ThomasDirector of Communications

and Political Initiatives

CS/CS/CS/CS/CS/HJR 381

Senate Vote 5/4/11

25 Yeas 12 NaysSJR 658

Sponsored by Sen. Fasano

House Vote 5/2/11

105 Yeas 11 NaysHJR 381

Sponsored by Rep. Dorworth

The Basics…

• Requires 60% of Voter Approval

• The provision of the amendment will take effect upon passage, except the first time homesteader exemption that will take effect on January 1, 2013 and be available for properties purchased after January 1, 2012 .

Three primary elements:

• Non-homestead Assessment Cap - from 10% to 5%.

• First-time Homesteader exemption – 50% of value phased-out over five years.

• Anti- Recapture -so that assessed value does not go up by CPI or 3%, if just value drops.

Non-Homestead Assessment Cap

• Reduces the annual growth in assessment limitation on most non-homestead property from 10 percent to 5 percent.

• The January 1, 2019 sunset of the non-homestead assessment limitation is extended to 2023.

First-Time Homesteader Exemption

• New homestead exemption for “first-time homesteaders”- individuals who have not received a homestead exemption in the past three years.

• Additional homestead exemption is 50 percent of the median just value for property up to the median just value for the county.

• The exemption is reduced each succeeding year by 20 percent of the initial exemption for five years.

Recapture

• Allow the Legislature by general law to prohibit increases in the assessed value of a homestead property and certain non-homestead property, if the just value of the property decreases.

• Anti-Recapture so that assessed value does not go up by CPI or 3%, if just value drops

• Only the Save Our Homes Anti-Recapture change affects Schools.

Estimated Taxable Value Impacts ($M)

Fiscal Year 1st Time Homesteaders 5% NHS Cap

Anti-Recapture* Homestead

Anti- Recapture*

Non-Homestead

Taxable Value Impacts

2013-14 (3,304.0) (7,545.0) (4,880.7) (1,301.1) (17,030.8)

2014-15 (5,077.4) (14,881.5) (7,994.5) (3,075.8) (31,029.3)

2015-16 (7,124.0) (22,299.5) (10,028.4) (3,783.9) (43,235.8)

2016-17 (9,359.8) (36,803.7) (12,363.1) (4,660.6) (63,187.2)

*Anti- Recapture Provision Requires Legislative Implementation

Estimated Tax Impacts ($M)

FY1st Time

Homesteaders

5% NHS CapAnti-

Recapture* Homestead

Anti- Recapture*

Non-Homestead

Total Impacts

2013-14 (35.5)

(82.8)

(54.6)

(14.3)

(187.2)

2014-15

(54.6)

(163.3)

(89.4)

(33.8)

(341.1)

2015-16

(76.6)

(244.8)

(111.9)

(41.5)

(474.8)

2016-17

(100.7)

(404.0)

(137.3)

(51.2)

(693.2)4 Yr. Total

(267.4)

(894.9)

(393.1)

(140.8)

(1,696.2)*Anti- Recapture Provision Requires Legislative Implementation

Tax impacts by Type of Jurisdiction ($M)

FY Counties Cities Indep.Districts

Non-School Tax Impact

2013-14 (112.9) (49.3) (25.0) (187.2)

2014-15 (205.3) (90.2) (45.5) (341.1)

2015-16 (286.0) (125.3) (63.4) (474.8)

2016-17 (417.6) (182.9) (92.7) (693.2)

4 Yr. Total (1,021.8) (447.7) (226.6) (1,696.2)

AMENDMENT 4Unfair. Unbalanced. Unworkable.

To learn more, visit http://www.floridaleagueofcities.com/News.aspx?CNID=9072

Questions & Contact Information

Amber HughesLegislative Advocate

Florida League of CitiesAHughes@flcities.com

850.701.3621

John ThomasDirector of Communications

and Political InitiativesJthomas@flcities.com

850-222-9684

Jenna TitcombCommunication Coordinator

Florida League of CitiesJTitcomb@flcities.com

850.701.3674