Amendment 5 would cut taxes for homeowners, but reduce revenue for local governments

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JACKSONVILLE, Fla. — Florida voters will have the opportunity to lower their property taxes with their decision on Amendment 5, but the measure may not be as straightforward as it seems.

Amendment 5 would create an annual inflation adjustment for one of Florida’s two $25,000 homestead exemptions.

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If inflation goes up, so too would the portion of the value of your home that would be exempt from non-school-related property taxes.

State Representative Dean Black (R-Yulee) argued the measure should be a no-brainer for voters.

“If inflation is the problem, let’s at least do what’s right and fair for homeowners and let their homestead exemption be indexed to inflation going forward,” said Black.

But Florida Democrats like State Representative Anna Eskamani (D-Orlando) argue the potential tax cut comes with a tradeoff.

“You the consumer may save $15 to $20 annually on your property taxes,” said Eskamani.

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While there is no financial impact statement tied to the measure on your ballot, since it was pushed through by the state legislature, the staff analysis done on the bill shows local governments would be expected to lose an estimated $111.8 million annually by 2028.

“And what that means is local governments are not going to be able to pay for essential services like police, fire,” said Eskamani.

UCF political science professor Dr. Aubrey Jewett noted there’s a real possibility local government may have to raise property taxes to make up for that lost revenue, meaning homeowners may end up seeing little or no change on their taxes if Amendment 5 passes.

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“And if they raise the rates, the people who rent and the people who have commercial property like if you’re a business owner, you’re going to end up paying more in taxes,” said Jewett.

Amendment 5 needs 60% support to pass on Tuesday.

Due to a lack of polling on the measure, it’s anybody’s guess as to whether it has a shot at reaching that mark.

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