Understanding Florida Amendment 5: A Guide for Voters for South Florida Homeowners

Amendment 5 on the 2024 ballot proposes an annual inflation adjustment to Florida’s homestead property tax exemption, which applies to primary residences located in Coral springs, Parkland, Coconut Creek, Tamarac and Margate this amendment aims to offset the impact of rising living costs on homeowners. Here’s a breakdown of what a “Yes” or “No” vote would mean for voters.

What a “Yes” Vote Means

A “Yes” vote supports amending the Florida Constitution to index the homestead exemption to inflation, effectively increasing the exemption value each year based on the Consumer Price Index (CPI). This means:

• Increased Tax Savings for Homeowners: Homeowners could see their exemption grow annually, potentially reducing their taxable property value over time, which would lower their property tax bills. The exemption increase would not apply to school district taxes but would affect other property-related taxes.

• Preservation of Buying Power: As property values rise, the amendment aims to protect homeowners from being taxed on the full impact of inflation. This could be especially beneficial in areas like South Florida, where property values have surged in recent years.

• Potential Impact on Local Budgets: While homeowners benefit from lower taxes, local governments might see a reduction in property tax revenues, which fund services such as emergency response, public infrastructure, and community programs. The projected revenue loss could exceed $100 million by 2028, according to Florida state economists​ WUWF ​Florida Phoenix

What a “No” Vote Means

A “No” vote opposes the amendment, meaning:

• No Change to the Current Exemption: The homestead exemption would remain fixed at current levels, without annual adjustments. While this might mean fewer immediate savings for homeowners, it would maintain stable property tax revenue for local governments.

• Stable Funding for Local Services: With no inflation-based increase in the exemption, municipalities and counties would retain current property tax revenue levels, helping fund essential services. Some opponents argue that preserving this funding is essential, particularly in areas experiencing rapid population growth and rising service demands.

• Property Tax Burden Remains Consistent: Without this adjustment, homeowners could see their effective tax burden grow over time as inflation increases property values. However, other taxpayer protections, such as Florida’s Save Our Homes cap, would continue to limit annual increases on assessed home values to 3% or the CPI, whichever is lower​ WINK News Florida Realtors

Arguments For and Against

• Proponents argue that Amendment 5 is necessary to protect homeowners’ buying power as inflation erodes the real value of the current exemption. Supporters say it will make Florida more affordable for homeowners, especially in markets with high property values.

• Opponents worry about the strain on local government budgets, which could lead to higher taxes on other property types, such as rentals and commercial properties. This shift could increase costs for renters and businesses and may affect local services if budget shortfalls arise​ Florida Phoenix

In sum, Amendment 5 offers potential tax savings for homeowners but may impact local government revenue, affecting funding for public services. The decision hinges on balancing individual homeowner benefits with broader community funding needs.

Contact The Padron Team

The current market conditions in Coral Springs, Parkland, and Coconut Creek offer a promising opportunity for homeowners and buyers alike. For a personal, no-obligation home valuation, contact The Padron Team at United Realty Group today at (954) 937-1100 or email padronhometeam@gmail.com. Whether you’re selling or buying, an experienced Real Estate Agent can help you make the most of this dynamic market.