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On January 29, VOTE YES ON 1 Click here to download the following file in pdf form Here are the details of the Property Tax Reform. If you would like to print this and read at your leisure
please click on text above. Please e-mail your friends and colleagues a link to this page. October 20, 2007 Property Tax Reform Introduction Last week, the House Policy & Budget Council approved three bills for property tax reform – HJR 7001D (the proposed constitutional amendment), HB 7003D (the statutory implementation bill), and HB 7005D (placing the amendment on the January 29 ballot). The Senate passed its proposed constitutional amendment – SJR 2D – and sent it to the House. The Senate did not send its statutory implementation bill or special election bill to the House. On Monday, the House will take up SJR 2D, and Chairman Cannon will sponsor an amendment that refines the Senate’s framework. The amendment incorporates ideas from a variety of House members, including Republicans and Democrats. This policy brief explains the provisions of Chairman Cannon’s amendment. The House will also take up HB 7003D, with amendments to conform with the amendment to SJR 2D, and HB 7005D. The brief frequently references “the amendment to the Joint Resolution” or the “SJR amendment.” These references do approved; rather, they reference Chairman Cannon’s amendment to SJR 2D. TABLE OF CONTENTS Page Background – The Florida Property Tax System 2 The Real Estate Boom 7 Property Tax Reform Efforts in 2007 9 The Property Tax Reform Plan 12 Authorizing a Special Election – HB 7005D 21 Appendix A – Homeowner Scenarios 22 1 Background – The Florida Property Tax System Overview The Florida Constitution reserves all revenue from property value) for local governments. The state government derives no revenue from property taxes. The property tax is levied annually based on the value of real and tangible personal property on January 1 of each year. Property owners receive their tax bills in November and must submit payment by the following March 31. Local property appraisers annually assess each privately owned property in Florida, with certain exceptions like churches, based on market value. Local governments set the taxed. The millage rate applies uniformly to all taxable properties in the jurisdiction. After accounting for certain exemptions, differentials, and limitations (discussed below), the determine the dollar amount of the tax. Increasing or decreasing either the taxable value or the millage rate will increase or decrease the revenue generated by the tax. 1. The Property Tax Formula The following formula explains how to calculate a property tax bill in Florida. First, calculate the “Assessed Value:” Just Value Second, calculate the “Taxable Value:” Assessed Value Finally, calculate the total tax bill: Taxable Value Example 1: Assume Homestead A has a just value of $400,000, an accumulated $100,000 in Save Our Homes protections, a Homestead Exemption of $25,000, and the total millage rate is 20 mills: $400,000 – $100,000 = $300,000 $300,000 – $25,000 = $275,000 $275,000 x .02 = $5,500 (Total Property Taxes) 2 2. Local Entities with Taxing Authority The Florida Constitution authorizes several types of local governments to levy property taxes up to a certain amount. Most notably and school district governments A county that provides municipal services (called a or MSTU) may levy an additional property tax as set forth in statute. Independent Special districts the Constitution or by statute and operate with a variety of millage caps, usually under two mills. Generally, counties and cities vary as to how they use special districts to deliver services. For example, some communities feature independent special districts that deliver fire and rescue services, while others fund these services from county or city general funds. Services varying from hospital funding to mosquito control can similarly be provided through county/city funds or through independent special districts. 3. Tangible Personal Property Tax The Florida Constitution authorizes an ad valorem tax on tangible personal property, which includes furniture, machinery, and similar items. properties are exempt from this tax, but businesses are required to pay. same millage rate that applies to real property is also applicable to tangible personal property. The tangible personal property tax is administratively cumbersome for both business owners and property appraisers, as it requires line item accounting of a given parcel’s tangible personal property items. Business owners must annually adjust their returns to reflect changes in the amount of tangible personal property they own and depreciated value of certain items. 4. The Homestead Exemption The Florida Constitution authorizes an exemption commonly known as the “Homestead Exemption,” which property from property taxation. no Floridian can claim more than one property as a homestead. 1 Local Effort (RLE), the state government levies a property tax that funds a substantial portion of education programs. However, while the state government sets the millage rate for the RLE, local school districts collect and appropriate the revenue. In addition, local school districts may levy a separate property tax. The state government also appropriates money from state revenues to fund education. 3 2 Only those residents who benefit from the service are taxed by the special district. Today, there are over 900 special districts in Florida. This exemption applies to the first $25,000 of assessed value. It also applies to all property taxes that are levied against the homestead property – including taxes for counties, cities, independent special districts, and school districts. Irrespective of home value and assuming a total millage rate of 17 mills (slightly above the statewide average), the Homestead Exemption would provide $425 in savings every year. A $25,000 Homestead Exemption in 1980 – when it was authorized – would be worth $64,111 today. 5. Save Our Homes In 1992, Florida voters approved the “Save Our Homes” (SOH) amendment to the Florida Constitution. homestead property change in CPI, whichever is less. The SOH assessment limitation applies to all property tax levies, including schools. Over time, many homestead properties have developed significant tax protections due to SOH. A property that experiences a change in ownership is reassessed at just value, thus surrendering Accumulated SOH Benefits. In other words, when a homestead owner moves to a new home, he loses his SOH protection and will only be eligible for the $25,000 Homestead Exemption in his new home. If “upsizing” to a house of greater value, the new home’s tax bill will often be significantly higher. Even if “downsizing” to a house of less value, the tax bill may still be higher than the former home. Constitutional Issues of Save Our Homes and Portability Some argue that Florida’s Save Our Homes (SOH) provision is unconstitutional under the U.S. Constitution and that allowing “portability” of SOH benefits will exacerbate the system’s unconstitutionality. As tax disparities 1) among homestead owners and 2) between homestead owners and non-homestead owners grow, a court may find Save Our Homes unconstitutional. Although courts have previously upheld Florida’s Save Our Homes system, growing tax disparities might give rise to a new and successful challenge. There are four potential challenges to the SOH system and portability under the Constitution (ranked here in order of least likely to most likely to succeed): 4 a. The Equal Protection Clause. create tax policies that benefit owners under the Equal Protection Clause of the 14 Amendment. However, in a similar case ( Supreme Court held that California’s system of giving primary home owners a special tax benefit was permissible under the Constitution. Thus, the Equal Protection challenge is likely the weakest argument against SOH and portability. b. The Privileges and Immunities Clause. unjustified discrimination against nonresidents. However, Save Our Homes does not distinguish between residents and nonresidents, but rather between homestead and non-homestead owners. Thus, a challenge under this clause would be relatively weak. c. The Commerce Clause. Clause of the U.S. Constitution inherently prevents states from creating laws that discriminate against interstate commerce. Florida’s SOH system shifts the tax burden from homestead properties to non-homestead residential and commercial properties. Therefore, some argue that Florida’s tax policy unconstitutionally discriminates against interstate commerce, such as those businesses that might wish to locate in Florida or those who intend to invest in non-homestead residential property. This argument seems to have legal merit. d. The Right to Travel. right to travel that has three components: 1) “the right of a citizen of one State to enter and to leave another State,” 2) “the right to be treated as a welcome visitor rather than an unfriendly alien when temporarily present in the second State,” and 3) “for those travelers who elect to become permanent residents, the right to be treated like other citizens of the State.” The third component presents the most likely successful challenge to Save Our Homes. Potential Remedies If a court finds Florida’s Save Our Homes system unconstitutional, it may order certain remedies to rectify the discrimination. Under the Supreme Court’s interpretation of the Due Process Clause, a government that has unconstitutionally discriminated against a class of people must provide “meaningful backward-looking relief.” 5 The court may therefore order that 1) the favored class of homestead owners benefiting from SOH be “back-taxed” or 2) the disfavored class of non-SOH beneficiaries be refunded taxes that were unconstitutionally levied. 6. Other Property Tax Protections Florida law offers several exemptions for special individual circumstances: • An honorably discharged veteran with service-connected total and permanent disability may qualify for total exemption of homesteaded property used and owned as a homestead, less any portion used for commercial purposes. • veterans with a service connected disability rating of at least 10% may qualify for this exemption on any property they own. • counties may adopt by ordinance an additional exemption up to $50,000 for qualifying low-income seniors. • resident may claim this exemption. Upon remarriage, the widow or widower is ineligible for the exemption. • permanently disabled may qualify for this exemption. • 7. Revenue Generated by Local Property Taxes Property taxes provide a significant source of revenue to local governments. For the 2006-07 Fiscal Year, local governments levied just over $30 billion through the property tax. However, local governments receive the great majority of their total revenue from other sources like fees, licenses, bonding, etc.: % of Total Revenue from Property Taxes Government Entity (FY 2003-04 - most recent data available) Counties 31% Cities 18% School Districts 38% (in 2004-2005) 6 Special Districts 20% The Real Estate Boom Driven largely by remarkable gains in property values, local government tax levies have soared in recent years: Florida P roperty T axes Levied $15.3 $ 1 1 .2 $30 .5 4.0% 5.2% 4.8% 5.8% 4.9% 7.0% 9.0% 9.2% 11.6% 10.5% 14.7% 18.5% 0 5 10 15 20 25 30 35 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 FY Ending $ in Billions Tax Levies A nnual % Change 8 7 9 Florida Property Tax Levies by Governme nt Type $5.8 $11.5 $4.2 $6.5 $12.3 $5.0 $1.9 $4.1 $1.2 $1.1 $2.6 0 2 4 6 8 10 12 14 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 FY Ending $ in Billions Counties Schools Cities Spec Dis ts Growth Rates (12 yrs): Schools 144% Counties 173% Cities 236% Spec Dists 230% Unfortunately, local governments have allowed taxes to grow at a faster pace than the growth in personal income. Local governments have modestly reduced millage rates in recent years. However, they have simultaneously experienced revenue windfalls because property values have increased so dramatically. The next chart shows the difference between the actual millage rate today and what the millage rate today governments had matched tax levies to population plus inflation over the last 12 years. 8 10 Florida Property Tax Levies: Per Household and as a Percent of Personal Income $2,036 $3,048 $1,983 4.5% 3.5% 3.3% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 FY Ending Per Household, Inflation Adjusted Taxes as % o f Personal Income Florida Property Tax Base and Rates $1,648.7 $514.7 21.85 11.83 18.47 0 200 400 600 800 1000 1200 1400 1600 1800 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 FY Ending $ in Billions Taxable Value Millage Rate--Pop + Inflation Millage Rate--Actual . Property Tax Reform Efforts in 2007 Overview The Legislature passed a constitutional reform amendment and statutory relief bill in Special Session 2007B. Recently, a circuit court invalidated the ballot language for the proposed amendment while upholding the statutory relief bill. The Florida Constitution requires a 90-day period between final passage of a proposed constitutional amendment and the date of the election for the amendment. Thus, the Legislature must authorize an amendment by October 28, 2007 in order to place it on the January 29, 2008 presidential primary ballot. Otherwise, tax reforms would likely not take effect until 2009. Regular Session 2007 The House and Senate passed different property tax plans near the end of the 2007 Regular Session. The chambers met in conference and were unable to reach an agreement. Both the House and Senate plans included a rate roll-back approach. The House used 2000-01 as the base year, while the Senate used 2004-05. The House plan offered greater savings. Both plans had a cap for future years, but the Senate delayed the cap until 2009-2010. The House plan included a tax swap that would have eliminated all property taxes on homestead properties in exchange for an increased sales tax, subject to certain local options. This would have abolished the inequities and lock-in effect of Save Our Homes. The Senate plan instead allowed statewide portability with a $500,000 cap on the transferable benefit and allowed a first-time homebuyer exemption of $25,000. Both plans would have created a new Tangible Personal Property Tax Exemption of $25,000. Special Session 2007B The House and Senate agreed to a new approach for property tax reform during the 2007B Special Session. A statutory bill created immediate tax relief and instituted a property tax revenue cap. created $2.1 billion of property tax relief this year 9 The House and Senate also passed a Joint Resolution that would have created a new Super Homestead Exemption to offer permanent reform. The new exemption would cover 75% of the first $200,000 of homestead value and 15% of the next $300,000 (for a maximum exemption of $195,000), with all homesteads receiving at least a $50,000 exemption. Homestead owners who currently benefit from Save Our Homes could choose to continue with that benefit or switch to the new super exemption. The HJR also authorized a $25,000 Tangible Personal Property exemption and allows targeted relief for affordable housing, low-income seniors, and working waterfronts. Relief Results The following charts show the results of HB 1B, passed during Special Session. Florida City, County & Independent District Property Tax Levies Compared to Cap Based on Population and Income Growth (Base Year for Cap = 1982) Mandatory Relief in 2007 - Statutory Cap 10,000 12,000 14,000 16,000 18,000 20,000 22,000 2003 2004 2005 2006 2007 Year of the Tax Roll $Millions Actual & EstimatedTaxes Levied Property Taxes with Long-Run Cap Legislative Property Tax Cap -$2.1 Billion Taxes if Cap in Place Since 1982 Actual 2007 Taxes With Legislative Caps 10 Estimated Taxes in 2007 Without Caps 11 Growth in City, County and Special District Property Taxes Before and After Statutory Tax Caps Enacted -1.2% 9.9% 12.5% 12.0% 15.2% 18.5% -5% 0% 5% 10% 15% 20% 2002 2003 2004 2005 2006 2007 With Caps Without Caps Reduction After Statutory Caps Enacted Average Growth Before Caps = 13.6% The Property Tax Reform Plan SJR 2D & HB 7003D The Bottom Line The SJR amendment eliminates the “lock-in effect” of Save Our Homes by allowing statewide portability for a period of two years after leaving the former homestead. It accelerates Save Our Homes savings by providing a Guaranteed Save Our Homes Benefit worth 40% of the county’s median homestead just value. Low-income seniors receive an accelerated SOH protection worth 100% of the median homestead just value. The amendment to the Joint Resolution creates a new 5% assessment cap for all nonhomestead properties (i.e. business properties, apartments, and second homes). It also creates a Tangible Personal Property Tax Exemption of $25,000 to lower administrative and tax costs for businesses. It limits property tax assessments for affordable housing and working waterfront properties. Furthermore, it requires that all property appraisers be elected rather than appointed. HB 7003D provides implementing language for the constitutional amendment. The total fiscal impact of the constitutional amendment is $11 billion over four years, of which $964 million will come from school tax levies. Summary of the amended SJR 2D & HB 7003D 1. Allows “ homestead to another. • Benefit to transfer 100% of the benefit homestead 3 well as by the Governor. The most prominent portability bill in the 2007 Regular Session was sponsored by Representative Domino (R) and co-sponsored by representatives Allen (R), Anderson (R), Davis, D. (R), Harrell (R), Holder (R), Kiar (D), Long (D), Needelman (R), Proctor (R), Robaina (R), Sands (D), Scionti (D), and Vana
(D). The Senate property tax plan from the 2007 Regular Session allowed portability of benefits up to $500,000. This particular iteration of portability is drawn directly from the proposal the Governor submitted prior to Special Session 2007D. 12 • transfer a SOH benefit that protects the same percentage of value as it did the former homestead, up to a $1 million benefit. o former home, the new SOH benefit will equal to 25% of the just value of the new home. • abandonment of the former homestead in order to transfer the SOH benefit. • homestead in 2007 will be eligible to transfer their benefit from the former homestead. • in the state • tax levies. benefit will begin at zero. • one person has established the homestead: o only one new homestead, they can only transfer a benefit from one of the former homesteads. homesteads to move into one new homestead, they will choose to transfer whichever of their SOH benefits is largest. o more than one new homestead, they must divide the value of their SOH benefit among the new homesteads. their shared homestead with a $100,000 SOH benefit into two new homesteads, they may choose to divide benefit in half and apply a $50,000 benefit to each of their new homesteads. 13 [The following page provides a visual description of the portability proposal in the Joint Resolution.] _______________________________________________________ 14 CURRENT SITUATION (without Portability) Just Value: $400,000 Accumulated SOH benefit: $200,000 Assessed Value: $200,000 Just Value: $600,000 Accumulated SOH benefit: $0 Assessed Value: $600,000 Just Value: $200,000 Accumulated SOH benefit: $0 Assessed Value: $200,000 Upsize Downsize With Portability Just Value: $400,000 Accumulated SOH benefit: $200,000 Assessed Value: $200,000 Just Value: $600,000 Accumulated SOH benefit: $200,000 Assessed Value: $400,000 Upsize Just Value: $200,000 Accumulated SOH benefit: $100,000 Assessed Value: $100,000 Downsize 2. Creates tax relief for those homestead owners who need it most by accelerating SOH savings with a new guaranteed benefit. • properties, without having to wait years to get them. • seniors) median home values are available on pages 23-24 of this document). • Along with using the county median home value approach, this will minimize the impact on low property value cities and counties. • SJR does not replace Save Our Homes; it accelerates it ( the next page for more • to protect Florida’s education system. • Income Senior Local Option Exemption) will on top of the Guaranteed SOH Benefit. • provision to double the Homestead Exemption for two main reasons: 1) Doubling the Homestead Exemption would have spread a relatively small benefit over all homesteads – limiting the amount of tax relief that can go to those who need it most. By contrast, the Guaranteed SOH Benefit targets greater relief for those homestead owners who currently have the least tax protection. 2) By basing the benefit on median county home values, the Guaranteed Save Our Home Benefit is better tailored to local situations and minimizes the impact on counties with low property values. 4 submitted by the House Democratic Caucus. Leader Gelber (D) has submitted an amendment to HJR 7001D (#646777) that employs a 40% of median county just value approach, as have Representative Long (D) (#357355) and Representative Randolph (D) (#406541). House Democrats also offered amendments to property tax bills in Regular Session that granted new protections based on a percentage of median county values (e.g., #105513 to HJR7089 by Leader Gelber). 15 3. Creates an seniors to substantially reduce their tax bills. • for qualifying low-income seniors equal to 100% the county’s median homestead value document). • home value exemption in section 2 above, with two exceptions: o thereby offering substantially deeper savings for qualifying seniors. o one, rather than after the first $50,000 in order to provide more savings. • total household income must not exceed $23,604 annually (adjusted for inflation). Under the implementing legislation, household income includes (rather than “adjusted gross income” under the federal tax code) to prevent unfairly shielding income. Income includes Social Security and veterans’ benefits. 16 • education system. Important Here’s how the new “Guaranteed SOH Benefit” works in the context of the current Save Our Homes system: • basis and that they can carry with them from home to home. This is called the “ – capping assessment growth at 3% per year – except that the Joint Resolution also creates portability. • first-time homestead buyers homeowners most in need of relief. Therefore, the amendment to the Joint Resolution provides the 40% of median home value benefit to accelerate their savings. This is called the • Accumulated SOH Benefit is greater than the guaranteed benefit, the homeowner will utilize the Accumulated SOH Benefit. The Accumulated SOH Benefit will continue to apply to school taxes, even if using the Guaranteed SOH Benefit for non-school taxes. • Accumulated SOH Benefit Accumulated SOH Benefit or the Guaranteed SOH Benefit. • Guaranteed SOH Benefit, the Accumulated SOH Benefit will remain pocket. Accumulated SOH Benefit would save her more money, she can take it out of her pocket and apply it to her property in perpetuity. • Homes. savings immediately, rather than having to wait years to enjoy meaningful savings. • money by using the Guaranteed SOH Benefit, rather than using the Accumulated SOH Benefit. • because it saves them more money. These homestead owners get the benefit of portability when they decide to move, and it will be easier to sell their homes since every potential homebuyer will be eligible for the immediate Guaranteed SOH Benefit. 17 4. Creates a 5% annual assessment cap for ALL non-homestead properties in Florida. • non-homestead residential and business properties to 5%. • limitation will expire at change of ownership. • until there has been a substantial modification to the improvements (i.e., construction) on the property or a change of use of the property, as defined by the Legislature. • against unexpected and substantial assessment hikes. The cap will use a base year of 2008, which means the cap will begin shield properties from taxation in 2009. • apartment buildings, second homes, and rental housing – ensuring that many taxpayers who are currently overburdened receive protections into the future. 5 3% cap for all non-homestead properties [Representative Saunders (D), Chairman Mayfield (R), and Majority Leader Hasner (R)]. The vote on that amendment passed with bi-partisan support by 26-4 (21 Republicans and 5 Democrats in favor, 4 Democrats in opposition). Senator Posey sponsored an amendment on the Senate Floor to create a 3% assessment cap for non-homestead properties, which failed by a voice vote. Chairman Bean (R) and Representative Traviesa (R) sponsored a bill (with an identical companion by Senator Baker) in the 2007 Regular Session to cap assessments on commercial properties to 5%. 18 The Non-Homestead Cap & Save Our Homes Various media reports have erroneously asserted that creating a 5% cap for nonhomestead properties undermines the protections of the 3% assessment cap for homestead properties. The assertion holds that new tax protections for nonhomesteads will result in a tax shift to homesteads. This is fails to account for several considerations: • only revisions to Save Our Homes offer Guaranteed SOH Bnefit). • governments, which will continually suppress millage rates and protect against a tax shift rates to compensate for the 5% cap. However, the revenue cap will not allow local governments to raise tax rates without a supermajority vote. • into local revenues or invite a tax shift to homestead properties. Historical data shows that the average rate of appreciation for business properties in Florida over a 20-year span is less than 5%. The purpose of a 5% cap is only to protect businesses from unexpected and substantial assessment increases of 7%, 10%, 15%, or even 20% -- as has often occurred in recent years in certain areas. 5. Creates a new Tangible Personal Property Exemption of $25,000 for business properties. • Property of $25,000. • an aggregate tax rate of 17 mills, which is near the statewide average). • property will often cumbersome administrative burden. • exemption from the tangible personal property tax. • schools, businesses would save money but still be required to file annual returns. This would undermine the purpose of completely removing the administrative burden of filing annual returns. 19 6 7003D includes implementing language to set the exemption at $25,000. 6. Provides tax protections for properties used for affordable housing. • just value to pass those savings on to tenants. • operating net income Thus, a rent-restricted apartment complex will be taxed based on the income it generates, rather than the income it could something other than affordable housing. 7. Provides tax protections for Florida’s working waterfront properties. • for market value 8. Instills voter accountability for all local property appraisers. • elected by local voters • are hired by the mayor or commissioners and make sure that the property appraisers are accountable to the voters. • unique situation of vesting the traditional powers of a property appraiser in an officer of a different name. 9. Requires the Legislature to limit local governments’ authority to increase property taxes. • limitation on local governments’ authority to raise property taxes • requirement by placing property revenue tax revenue caps on local taxing authorities. By placing this provision in the Constitution, taxpayers will have the assurance that the revenue cap will exist in future years. 20 Authorizing a Special Election HB 7005D Background The Florida Constitution stipulates that a special election may only be called by a three-fourths vote in the House and Senate. The bill authorizing the special election must have no other subject matter than the authorization of the special election. Summary of the Bill HB 7005D authorizes a special election for a public vote on SJR 2D. The Special Election will coincide with the Florida Presidential Preference Primary on January 29, 2008. • could not be implemented until 2009 tax bills are issued. proposed constitutional amendment on the ballot in January 2008 makes the new reforms and savings available for tax bills in November 2008. • members of a party can vote for candidates of that party. all political affiliations may vote on the proposed constitutional amendment. What Happens Next? HB 7003D requires approval by a presentment to the Governor. SJR 2D requires approval by chamber in order to place the measure before the voters. HB 7005D requires a vote in both chambers in order to authorize a special election for consideration of the proposed constitutional amendment. The Constitution requires 90-days notice of a proposed constitutional amendment. HB 7005D places the property tax reform amendment on the January 29, 2008 ballot; thus, the Legislature must approve SJR 2D by October 28, 2007. 21 Appendix A: Homeowner Scenarios Overview This appendix provides examples of how the proposed property tax plan will benefit various types of homeowners according to whether they stay in their current homes, move to a more expensive home, move to a less expensive home, or buy their first home. The examples are grouped according to three different types of counties: low, medium, and high property values. None of these example counties is identical to a real county in Florida. However, to provide context, here are examples of real Florida counties that have similar property values to these example counties: 1) Pages 25 – 27: A typical value near $75,000 (e.g., Gadsden, Putnam, and Hardee) 2) Pages 28 – 30: A typical value near $150,000 (e.g., Hernando, Alachua, and Pasco) 3) Pages 31 – 33: A typical value near $250,000 (e.g., Palm Beach, Broward, and Martin) Note: Methodology 22 Each example uses a standard rate of 16.94 mills (7.24 mills for school levies and 9.70 mills for aggregated non-school levies), which is near the statewide average. For homeowners with a large Accumulated SOH Benefit, 60% of just value was used to calculate the SOH benefit. For homeowners with a small Accumulated SOH Benefit, 20% of just value was used to calculate the SOH benefit. County by County Median Home Values 23 County 40% Of Median Home Value 2007 Median Home Value Dixie $ 18,700 $ 46,750 Liberty $ 20,566 $ 51,416 Holmes $ 20,842 $ 52,104 Calhoun $ 22,765 $ 56,912 Taylor $ 23,245 $ 58,114 Jackson $ 24,156 $ 60,390 Washington $ 24,448 $ 61,121 Madison $ 24,488 $ 61,219 Hamilton $ 25,255 $ 63,138 Lafayette $ 29,052 $ 72,629 Union $ 29,063 $ 72,659 Gadsden $ 29,445 $ 73,613 Putnam $ 29,703 $ 74,258 Hardee $ 30,446 $ 76,114 Bradford $ 33,066 $ 82,665 Jefferson $ 33,492 $ 83,730 Suwannee $ 34,381 $ 85,954 Levy $ 35,698 $ 89,245 Glades $ 36,869 $ 92,172 Gilchrist $ 36,959 $ 92,397 Columbia $ 37,867 $ 94,667 Baker $ 38,901 $ 97,252 Wakulla $ 41,168 $ 102,919 Escambia $ 41,812 $ 104,530 Hendry $ 43,634 $ 109,085 Okeechobee $ 45,619 $ 114,047 Desoto $ 46,414 $ 116,035 Gulf $ 46,952 $ 117,380 Citrus $ 50,920 $ 127,300 Walton $ 51,366 $ 128,416 Highlands $ 51,877 $ 129,692 Marion $ 56,462 $ 141,155 Santa Rosa $ 56,706 $ 141,766 Polk $ 57,179 $ 142,947 Hernando $ 58,602 $ 146,506 Alachua $ 59,960 $ 149,900 Pasco $ 62,056 $ 155,141 Franklin $ 63,699 $ 159,247 Sumter $ 64,298 $ 160,746 Bay $ 64,363 $ 160,909 County 40% Of Median Home Value 2007 Median Home Value Clay $ 64,714 $ 161,786 Duval $ 65,008 $ 162,519 Nassau $ 66,382 $ 165,956 Lake $ 66,907 $ 167,268 Leon $ 67,245 $ 168,112 Brevard $ 68,400 $ 171,000 Okaloosa $ 68,658 $ 171,645 Pinellas $ 69,720 $ 174,300 Indian River $ 70,298 $ 175,745 Saint Lucie $ 71,440 $ 178,600 Volusia $ 72,983 $ 182,457 Charlotte $ 73,175 $ 182,937 Hillsborough $ 73,948 $ 184,871 Flagler $ 75,351 $ 188,377 Osceola $ 81,080 $ 202,700 Orange $ 88,633 $ 221,582 Lee $ 90,612 $ 226,530 Manatee $ 91,005 $ 227,513 Seminole $ 92,320 $ 230,801 Sarasota $ 93,000 $ 232,500 Palm Beach $ 101,354 $ 253,386 Broward $ 101,648 $ 254,120 Martin $ 104,000 $ 260,000 Saint Johns $ 104,733 $ 261,832 Dade $ 106,894 $ 267,235 Collier $ 141,292 $ 353,230 Monroe $ 208,436 $ 521,091 24 C For the following examples, a county with a median property value of Low-income Senior with Large Current SOH Benefit Guaranteed SOH benefit = 100% of median county value Staying Ms. Valdes is 85 years old and has owned her home, which has a just value of $150,000, for many years. Her Accumulated SOH Benefit is worth $90,000, and her Guaranteed SOH Benefit of 100% is worth $75,000. Therefore, if she chooses to remain in her home, she will continue to apply the Accumulated SOH Benefit. Downsizing If Ms. Valdes chooses to sell her current home and buy a less expensive home with a just value of $90,000, her Accumulated SOH Benefit is now worth $54,000 because she ported it. Her Guaranteed SOH Benefit is still worth $75,000 because of protection for low income seniors. Therefore, she will apply the Guaranteed SOH Benefit, which will result in a Low-income Senior with Small Current SOH Benefit Guaranteed SOH benefit = 100% of median county value Staying Richard and Sarah are in their 70s and have owned their home, which has a just value of $75,000, for just a few years. Their Accumulated SOH Benefit is worth $15,000, and their guaranteed SOH benefit is worth $75,000. Therefore, if they choose to remain in their home, they will apply the Guaranteed SOH Benefit, which will result in a savings of $485 Upsizing If Richard and Sarah choose to sell their current home and buy a more expensive home with a just value of $90,000, their Accumulated SOH Benefit is still worth $15,000 after porting it. Their Guaranteed SOH Benefit is also still worth $75,000. Therefore, they will apply the Guaranteed SOH Benefit, which will result in a Downsizing If Richard and Sarah choose to sell their current home and buy a less expensive home with a just value of $60,000, their Accumulated SOH Benefit is now worth $12,000 because they ported it. Their Guaranteed SOH Benefit is still worth $75,000. Therefore, they will apply the Guaranteed SOH Benefit, which will result in a savings of $340 7 benefit. Therefore, she will not see any additional savings unless she moves, at which time she will enjoy the new benefit of portability. 25 C For the following examples, a county with a median property value of Homeowner with Large Current SOH Benefit Guaranteed SOH benefit = 40% of median county value Staying Byron and Rachel are in their 50s and have owned their home, which has a just value of $112,500, for many years. Their Accumulated SOH Benefit is worth $67,500, and their Guaranteed SOH Benefit is worth $30,000. Therefore, if they choose to remain in their home, they will continue to apply the Accumulated SOH Benefit. Upsizing If Byron and Rachel choose to sell their current home and buy a more expensive home with a just value of $150,000, their Accumulated SOH Benefit is still worth $67,500 after porting it. Their Guaranteed SOH Benefit is also still worth $30,000. Therefore, they will apply the Accumulated SOH Benefit, which will result in a Downsizing If Byron and Rachel choose to sell their current home and buy a less expensive home with a just value of $90,000, their Accumulated SOH Benefit is now worth $54,000 because they ported it. Their Guaranteed SOH Benefit is still worth $30,000. Therefore, they will apply the Accumulated SOH Benefit, which will result in Homeowner with Small Current SOH Benefit Guaranteed SOH benefit = 40% of median county value Staying Kim and Garrett are in their 40s and have owned their home, which has a just value of $75,000, for just a few years. Their Accumulated SOH Benefit is worth $15,000, and their Guaranteed SOH Benefit is worth $30,000. Therefore, if they choose to remain in their home, they will apply the Guaranteed SOH Benefit, which will result in a savings of $243 Upsizing If Kim and Garrett choose to sell their current home and buy a more expensive home with a just value of $90,000, their Accumulated SOH Benefit is still worth $15,000 after porting it. Their guaranteed SOH benefit is also still worth $30,000. Therefore, they will apply the Guaranteed SOH Benefit, which will result in a Downsizing If Kim and Garrett choose to sell their current home and buy a less expensive home with a just value of $60,000, their Accumulated SOH Benefit is now worth $12,000 because they ported it. Their Guaranteed SOH Benefit is still worth $30,000. Therefore, they will apply the guaranteed SOH benefit, which will result in a 26 8 benefit. Therefore, he will not see any additional savings unless he moves, at which time he will enjoy the new benefit of portability. C For the following examples, a county with a median property value of First-time Homestead Buyer Guaranteed SOH benefit = 40% of median county value Buying Chuck is a 30-year-old bachelor buying his first home, which has a just value of $56,250. Being a first-time homeowner, he has no Accumulated SOH Benefit. Chuck’s Guaranteed SOH Benefit is worth $6,200. Therefore, he will apply the Guaranteed SOH Benefit, which will result in a 27 C For the following examples, a county with a median property value of Low-income Senior with Large Current SOH Benefit Guaranteed SOH benefit = 100% of median county value Staying Ms. Valdes is 85 years old and has owned her home, which has a just value of $300,000, for many years. Her Accumulated SOH Benefit is worth $180,000, and her Guaranteed SOH Benefit is worth $150,000. Therefore, if she chooses to remain in her home, she will continue to apply the Accumulated SOH Benefit. Downsizing If Ms. Valdes chooses to sell her current home and buy a less expensive home with a just value of $180,000, her Accumulated SOH Benefit is now worth $108,000 because she ported it. Her Guaranteed SOH Benefit is still worth $150,000. Therefore, she will apply the Guaranteed SOH Benefit, which will result in a Low-income Senior with Small Current SOH Benefit Guaranteed SOH benefit = 100% of median county value Staying Richard and Sarah are in their 70s and have owned their home, which has a just value of $150,000, for just a few years. Their Accumulated SOH Benefit is worth $30,000, and their Guaranteed SOH Benefit is worth $150,000. Therefore, if they choose to remain in their home, they will apply the Guaranteed SOH Benefit, which will result in a savings of $1,213 Upsizing If Richard and Sarah choose to sell their current home and buy a more expensive home with a just value of $180,000, their Accumulated SOH Benefit is still worth $30,000 after porting it. Their Guaranteed SOH Benefit is also still worth $150,000. Therefore, they will apply the Guaranteed SOH Benefit, which will result in a Downsizing If Richard and Sarah choose to sell their current home and buy a less expensive home with a just value of $120,000, their Accumulated SOH Benefit is now worth $24,000 because they ported it. Their Guaranteed SOH Benefit is still worth $150,000. Therefore, they will apply the Guaranteed SOH Benefit, which will result in a savings of $922 28 9 benefit. Therefore, she will not see any additional savings unless she moves, at which time she will enjoy the new benefit of portability. C For the following examples, a county with a median property value of Homeowner with Large Current SOH Benefit Guaranteed SOH benefit = 40% of median county value Staying Byron and Rachel are in their 50s and have owned their home, which has a just value of $225,000, for many years. Their Accumulated SOH Benefit is worth $135,000, and their Guaranteed SOH Benefit is worth $60,000. Therefore, if they choose to remain in their home, they will continue to apply the Accumulated SOH Benefit. Upsizing If Byron and Rachel choose to sell their current home and buy a more expensive home with a just value of $300,000, their Accumulated SOH Benefit is still worth $135,000 after porting it. Their Guaranteed SOH Benefit is also still worth $60,000. Therefore, they will apply the Accumulated SOH Benefit, resulting in a Downsizing If Byron and Rachel choose to sell their current home and buy a less expensive home with a just value of $180,000, their Accumulated SOH Benefit is now worth $108,000 because the y ported it. Their Guaranteed SOH Benefit is still worth $60,000. Therefore, they apply the Accumulated SOH Benefit, resulting in Homeowner with Small Current SOH Benefit Guaranteed SOH benefit = 40% of median county value Staying Kim and Garrett are in their 40s and have owned their home, which has a just value of $150,000, for just a few years. Their Accumulated SOH Benefit is worth $30,000, and their Guaranteed SOH Benefit is worth $60,000. Therefore, if they choose to remain in their home, they will apply the Guaranteed SOH Benefit, resulting in Upsizing If Kim and Garrett choose to sell their current home and buy a more expensive home with a just value of $180,000, their Accumulated SOH Benefit is still worth $30,000 after porting it. Their Guaranteed SOH Benefit is also still worth $60,000. Therefore, they will apply the Guaranteed SOH Benefit, which will result in a Downsizing If Kim and Garrett choose to sell their current home and buy a less expensive home with a just value of $120,000, their Accumulated SOH Benefit is now worth $24,000 because they ported it. Their Guaranteed SOH Benefit is still worth $60,000. Therefore, they will apply the Guaranteed SOH Benefit, which will result in a 29 10 benefit. Therefore, he will not see any additional savings unless he moves, at which time he will enjoy the new benefit of portability. C For the following examples, a county with a median property value of First-time Homestead Buyer Guaranteed SOH benefit = 40% of median county value Buying Chuck is a 30-year-old bachelor buying his first home, which has a just value of $112,500. Being a first-time homeowner, he has no Accumulated SOH Benefit. Chuck’s Guaranteed SOH Benefit is worth $60,000. Therefore, he will apply the Guaranteed SOH Benefit, which will result in a 30 C For the following examples, a county with a median property value of Low-income Senior with Large Current SOH Benefit Guaranteed SOH benefit = 100% of median county value Staying Ms. Valdes is 85 years old and has owned her home, which has a just value of $500,000, f |