What is the Save Our Homes Amendment?
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This amendment to Floridas Constitution was approved by voters in 1992 and limits the annual increase in the assessments of homestead property to 3%, or the increase in inflation, whichever is less. In recent years, it has been below 3%, often less than 2%. In 2006, the cap was 3%.
But as Florida TaxWatch pointed out in 1992, Save Our Homes is not a tax limit, but a tax shift. Since it does not control millage rates, the effect has been a shifting of the tax burden to businesses, renters, and second homeowners. Even though average millage rates have been falling, they are certainly higher than they would be without the amendment. Property not subject to the limit bears the brunt.
Homeowners, as a whole, have undoubtedly saved money from Save Our Homes. But it is the high-priced homes with escalating values that profit the most. Others have not fared as well. People who want to move to another house also can face huge tax increases, because the new home will initially be assessed at full value.
Rapidly appreciating home values magnify these effects. The amendment excluded $350 billion in property value from the tax rolls in Fiscal Year 2006 (worth approximately $6.8 billion in taxes), shifting the tax burden from Save Our Homes eligible property to non-eligible property. That total has more than tripled in three years.
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