SB342 - New Law Allows Rental of homestead every year for 30 Days keep tax exemption
Senate Bill 342, an initiative originated in Northeast Florida, where property owners sought to rent out their homestead during The Players Championship golf tournament and the Daytona 500 without jeopardizing their homestead status for several tax exemptions. Under current law, rental for any amount of time in the second of two consecutive years triggers abandonment of homestead and loss of the homestead exemption in the second year.
SB 342 by Sen. John Thrasher (R-St. Augustine) provides a "safe harbor" that lets people rent their homestead for up to 30 days a year without losing the exemption. However, rentals that exceed 30 days for two consecutive years jeopardize the homestead exemption in year two.
Note that the law doesn't address how many days beyond the 30-day threshold triggers abandonment of homestead. A Department of Revenue opinion allows for rentals of up to six months every other year if proof of substantial residency and other conditions are met. Effective: July 1, 2013.
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