Property Tax Reform Update

Now that the legislative special session is over, we need to take a look at the ramifications of their actions.

There are 2 sides to this issue.
1.  How much will I save on my property taxes?
2.  What will happen to the city's budget?


How much will my property taxes go down?
The legislation is a 2-step process. 

Phase One.  The first phase will reduce your tax bill as much as 9%.  Homeowners will find out in August, when they get their notice of proposed assessment, how much they are saving.  The rollback does not apply to property taxes charged by schools districts.  Check your previous tax statement for the exact breakdown.

Phase Two.  Being placed on the January 29th, 2008 presidential primary ballot will be a constitutional amendment to create a super-sized exemption for property taxes.  If passed by 60% of the voters, homesteaded property owners can either stay with the present system or opt in for super-sized exemption of up to $195,000 for their house.

Which Plan Is Better For Me?
Here is a basic rule of thumb.  If you're homesteaded and you've lived in your house for more than 5 years, you're probably better to stay under the old system.  If you recently purchased your home, you would want to look at the new super-sized exemption.  The best thing is to look at your tax bill and do the calculation, or contact me and I will help do the math.

Click here if you'd like Deede to see how much your taxes could go down under the new system.

What will happen to the city's budget?
For the 2007/2008 budget year, which begins October 1st, 2007, the City of Miami Beach needs to hold the budget to the 2006/2007 budget, plus cut 9% on top of that.

Our General Funds budget was approximately $237 million.  9% of that is $21.3 million.  Last year our budget increased over $16 million in order to provide the same services as the year before.  Therefore the city will need to cut around $37 million.