AMENDMENT 1 PUTS FLORIDA'S BUYERS ON THE MOVE

Governor Charlie Crist and the Florida Association of Realtors aggressively supported the now-passed Amendment 1, originally known as the Save Our Homes Amendment begun in 1995. For those residents unsure of how Amendment 1 affects their real estate plans, here are facts from Florida Realtor Magazine:

•1. January's vote to approve Amendment 1 permits homesteaded Floridians to take their property tax assessment cap of 3% per year with them when purchasing a new residence. This tax portability allows homestead property owners to transfer up to $500,000 in accumulated Save Our Home benefits, including school taxes, to their new dwelling. The calculations change if a buyer purchases a more expensive residence over a less expensive one.

•2. Tax Portability is retroactive to January 1, 2007-good news for clients who upsized or downsized last year.

•3. 94% of homesteaded property owners will double their home value amount exempt from property tax from the current $25,000 to $50,000. However, the second $25,000 exemption does not apply to school taxes.

•4. Amendment 1 provides a $25,000 exemption on tangible personal property for businesses, such as computers and office equipment.

•5. Amendment 1 creates a 10% annual assessment cap on non-homestead property. The cap does not apply to school taxes. After 10 years, voters will have the option to restore the 10% cap.

Current homesteaded homeowners who have lived in their residences for 10 or more years are particularly good candidates for Amendment 1, since the substantial Save Our Home benefits offer the opportunity to "port" tax savings towards purchasing a new home. Given current market conditions and the selection of properties available, this tax portability offers an excellent incentive for buyers and sellers considering a change in their lifestyles to finally mobilize their plans.

For frequently asked questions and/or more information on Amendment 1, please visit www.floridarealtors.org and key word search, "Amendment 1."

Feel free to contact me at 954.328.3665 or email Julie@premierestateproperties.com. I'll be happy to answer any questions on how Amendment 1 affects your real estate needs. To view my luxury real estate offerings, please visit www.LuxuryRealEstateFtL.com.