Amber Hughes Legislative Advocate AMENDMENT 4: How Will It Affect Cities? John Thomas Director of Communications and Political Initiatives

CS/CS/CS/CS/CS/HJR 381 Senate Vote 5/4/11 25 Yeas 12 Nays SJR 658 Sponsored by Sen. Fasano House Vote 5/2/ Yeas 11 Nays HJR 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 (3,304.0)(7,545.0)(4,880.7)(1,301.1)(17,030.8) (5,077.4)(14,881.5)(7,994.5)(3,075.8)(31,029.3) (7,124.0)(22,299.5)(10,028.4)(3,783.9)(43,235.8) (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) FY 1st Time Homesteaders 5% NHS Cap Anti- Recapture* Homestead Anti- Recapture* Non-Homestead Total Impacts (35.5) (82.8) (54.6) (14.3) (187.2) (54.6) (163.3) (89.4) (33.8) (341.1) (76.6) (244.8) (111.9) (41.5) (474.8) (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) FYCountiesCities Indep. Districts Non-School Tax Impact (112.9)(49.3)(25.0)(187.2) (205.3)(90.2)(45.5)(341.1) (286.0)(125.3)(63.4)(474.8) (417.6)(182.9)(92.7)(693.2) 4 Yr. Total(1,021.8)(447.7)(226.6)(1,696.2)

AMENDMENT 4 Unfair. Unbalanced. Unworkable. To learn more, visit

Questions & Contact Information Amber Hughes Legislative Advocate Florida League of Cities John Thomas Director of Communications and Political Initiatives Jenna Titcomb Communication Coordinator Florida League of Cities