Florida Governor Ron DeSantis signed a new law, HB 7019, which could mean significant economic relief for homeowners in the state.
- Florida Governor Ron DeSantis signed a new law, HB 7019, which could mean significant economic relief for homeowners in the state.
- New Florida tax exemption law: relief for homeowners
- This exemption will apply to all taxes, with the exception of school taxes. Additionally, the exemption will be adjusted annually according to the Consumer Price Index (CPI).
- Lower taxes for homes raise concerns among Florida countiesWhile the reduction in taxes for homeowners may seem like good news, the reality is that it also has a downside.
This legislative proposal, HB 7019, seeks to amend the homestead exemption laws under the Homestead Exemption program, providing additional benefits to those who qualify. Voters will have the final say in November, when this measure is put to a referendum. If approved, the new homestead exemption law will take effect in June 2025.
New Florida tax exemption law: relief for homeowners
Given that buying and maintaining a home in most of the United States has become more difficult due to high prices, Florida Governor Ron DeSantis made a decision that will benefit homeowners and could attract investment by eliminating some taxes. Voters will have the final say in November.
Through law HB 7019, Florida homeowners will see a reduction in their property taxes. Since this measure is tied to inflation, it could even lower tax rates further in the future.
The HB 7019 law establishes an additional exemption of up to $25,000 on the assessed value exceeding $50,000 for those who already qualify for the Homestead Exemption.
This exemption will apply to all taxes, with the exception of school taxes. Additionally, the exemption will be adjusted annually according to the Consumer Price Index (CPI).
According to the official text of the law, homeowners will be able to reduce the assessed value of their home by up to $50,000, which will mean a reduction in the property tax burden. For example, the owner of a $300,000 home would pay taxes only on $250,000.
NBC asked about this initiative to John White, a homeowner with knowledge of the real estate market in South Florida, who said this will be an important incentive. “If a tax is imposed, it most likely won’t go down—it will stay the same or go up. So every time you hear about an initiative that involves tax reduction at any level, it’s fantastic. That will encourage people to come and become property owners in Florida.”
This amendment, proposed by the state’s Republican-led legislature, is tied to the inflation rate. So even if the Consumer Price Index were to increase by 4 percent, homeowners could see a similar decrease in their housing-related taxes, meaning they would pay even less.
According to Governor Ron DeSantis, the intention is to control Florida’s rising housing costs and help homeowners cope with inflation.
However, it should be noted that although the bill was signed by the governor, it must still be approved by voters as a constitutional amendment. Therefore, the decision on whether it takes effect will be made on the November ballot.
Lower taxes for homes raise concerns among Florida counties
While the reduction in taxes for homeowners may seem like good news, the reality is that it also has a downside.
Experts warn that municipalities will see a reduction in their revenue, which could create funding risks for the maintenance of public services such as police, fire departments, and libraries.
However, if the amendment is approved, the state has assured that it has set aside funds primarily for rural counties that could face greater problems due to the substantial reduction in tax revenue. Another criticism of the measure is that the benefit will only go to homeowners. That means renters, who typically have lower incomes, will not enjoy a tax reduction.
Voters will have the final say in November, when this measure is put to a referendum. If approved, the new homestead exemption law will take effect in June 2025.
Image: ET
