Page 7 - q3 2020

Amendment 5
Proposed “Common-Sense” Change to Florida Homestead Portability
5 is set to be on the ballot in Florida when voters hit the booths on November 3, 2020.
Amendment 5 makes logical sense. When passing the 1992 amendment, it is reasonable to assume voters intended for every eligible homeowner to be provided two full years to meet such portability requirements. Extending the time period by an additional year will provide every homeowner the benefit of what the voters intended in the 1992 amend- ment. Amendment 5 also appears to make economic sense, as a reduction in local property taxes is projected by approximately $1.8 million beginning in fiscal year 2021-22 and eventually projected to over $10 million annually.
In short, there does not appear to be much reason to oppose Amendment 5 and it seems to make common sense. By voting “yes” for Amendment 5, voters of 2020 will essential- ly be clarifying what the voters of 1992 intended and that
is to afford all eligible Florida property homeowners ample opportunity to ensure that the rights afforded under Arti- cle VII of the Florida Constitution equally apply across the board.
Samuel Colburn
Sam Colburn is an attorney at the firm of Woods, Weidenmiller, Michetti & Rudnick, LLP and practices firm’s real estate deparment.
Michael Michetti is the founder of the firm’s real estate department and serves as General Counsel to B.E.R
By Samuel Colburn, Esq. – Attorney with Woods Weidenmiller Michetti & Rudnick, LLP
Florida Homestead is one of the most prevalent and documented protections of home ownership in the state of Florida, bringing with it a variety of benefits. These benefits and protections, while not automatic, can be easily ob- tained. Even though one’s property will inevitably remain subject to Florida real property taxes, the Florida homestead tax exemption can provide for additional benefits, including but not limited to:
•A reduction of the taxable value of the property by at least $25,000.00.
•A three percent (3%), or the percent change in the Con- sumer Price Index (CPI), whichever is less, cap on the valuation of homes which receive the homestead exemption i.e. “Save Our Homes” – See Florida Statute § 193.155.
BUT... what happens when you decide to sell your current “homesteaded” property? How can you ensure that the new property you are buying retains these “homestead” benefits? Do these benefits automatically transfer to your new home- stead property? And how long do you have to accomplish this? It is likely that you are eligible to transfer, or “port,” this benefit to your new residence, hence the term “Porta- bility”. However, this is not an automatic right and requires swift action on the part of the homeowner to ensure they do not lose the benefit of the homestead exemption.
Portability allows eligible Florida homestead owners to transfer their benefits from their old homestead to a new homestead. The current “Save Our Homes Amendment” was passed back in 1992 and mandates that a homestead exemption for the new homestead must be applied for within two years of January 1st of the year in which the pre- vious homestead property was sold. However, problems can arise. For example, when someone sells their property towards the end of the year and builds a home that is not
to be completed prior to January 1 of the following year. In this particular scenario, it appears that two years may not necessarily add up to actually two years. This exact dilem- ma was posed by Pinellas County Property Appraiser Mike Twitty and serves as the basis for Florida Amendment 5,
or the Florida Extend “Save Our Homes” Portability Period Amendment. If passed, Amendment 5 will extend the Por- tability period from two years to three years. Amendment