What will the constitutional amendment that voters approved do?
It will do four things:
1. Increase the amount of a homestead exemption.
2. Allow homestead owners to transfer up to $500,000 of their accrued Save Our Homes benefit to another home.
3. Cap annual increases on non-homesteaded properties - such as second homes and businesses -at 10 percent.
4. Create a $25,000 tangible personal property exemption for businesses.
Who qualifies for a bigger homestead exemption?
Owners of homesteads with an assessed value of more than $50,000 will be eligible for an additional $25,000 exemption on their property tax bills. That exemption would be applied to the value of their home worth $50,000 to $75,000 and would affect only county, city and special taxing district assessments, which account for about 60 percent of most tax bills. Those with a home valued at less than $50,000 would not see any additional savings.
The homestead exemption for school district assessments would remain at $25,000.
Will I have to reapply for a homestead exemption?
No. Anyone now receiving a homestead exemption and who continues to qualify for it will automatically receive the additional exemption.
How much will I save?
It varies, but the average savings for homeowners is about $240 a year.
When will I see the savings?
The legislature has more work to do. When it returns in regular session in March it will have to pass another bill that spells out the technical details of how the amendment will work. The intent is for homeowners to see savings on their property tax bills that are mailed in the fall.
Will services be cut?
It depends on what your elected officials decide during the budget process this summer.
Is there anything that could prevent this from happening?
It could end up in court if it's challenged by a lawsuit like the one that kept the legislature's first amendment off the ballot. And there could be a lawsuit challenging the entire Save Our Homes concept.
Some attorneys believe that the Save Our Homes portability offered in the amendment might violate the 'right to travel' provision in the U.S. Constitution. The theory is that portability will give homestead owners an unfair advantage over potential buyers from other states.