Quick Summary: Makes permanent what currently is a temporary cap of 10 percent on annual property value increases for vacation homes, apartments and commercial property, effectively limiting increases on tax bills.
Full Summary: In 2008, Florida voters amended the state Constitution to provide a 10-percent cap on annual property value increases for non-homestead property. This includes vacation homes, apartment buildings, vacant land, shopping centers and office buildings. The amendment excluded limits on assessments for school taxes.
The amendment gave those properties some measure of tax protection from fast-rising property values, something homeowners get under the state’s Save Our Homes amendment, which limits property value increases for a primary residence to 3 percent each year. Property value matters because it determines how much you pay in property taxes.
However, the 2008 amendment on non-homestead property value limits is scheduled to automatically repeal on Jan. 1, 2019. Amendment 2, placed on the ballot by the Florida Legislature, would make the 10-percent limit on property value permanent (a legislative analysis of the proposal is here).
Like the 2008 amendment, Amendment 2 would exclude local school district taxes from the property value limits. The limits also do not apply if the property changes hands or if it undergoes substantial improvements. In other words, if a store is built on a piece of vacant land, the property value increase would not be protected by the 10-percent limit.
If approved by voters, this amendment would take effect on Jan. 1, 2019.