MIAMI.- Florida Governor Ron DeSantis signed a law that seeks to benefit homeowners by proposing to adjust the housing tax exemption to inflation.
According to the new rule, HB 7019, signed by DeSantis last Friday, each year there will be an additional $25,000 exemption adjustment in the taxable value of the property based on inflation, measured by the Consumer Price Index (CPI). . This means that each year, the value of the exemption could increase if the CPI increases, helping homeowners maintain the real benefit of the exemption in terms of purchasing power.
Alina García, state representative for District 115 and sponsor of the initiative, believes that the measure will offer significant financial respite to property owners. “Current inflation is high and citizens are reaching a financial limit,” said García, who is campaigning to be Miami-Dade County’s first elected supervisor of elections.
The tax relief would not hurt the coffers of fiscally constrained counties, as they will receive monetary compensation from the Florida government to mitigate losses in ad valorem (based on property value) tax revenue. This measure also seeks to prevent a fiscal crisis in counties with fewer resources, avoiding both the increase in local taxes and the reduction of services.
This law will only come into force if the constitutional amendment related to it is approved by voters in the next general election in November 2024. If the amendment is approved, the new law will come into effect from June 2025.
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