AMENDMENT 5: Annual Adjustments to the Value of Certain Homestead Exemptions

Official Ballot Summary:  “Proposing an amendment to the State Constitution to require an annual adjustment for inflation to the value of current or future homestead exemptions that apply solely to levies other than school district levies and for which every person who has legal or equitable title to real estate and maintains thereon the permanent residence of the owner, or another person legally or naturally dependent upon the owner is eligible. This amendment takes effect January 1, 2025.”

Amendment 5 Explained:  Voting “Yes” supports the addition of an adjustment for inflation to the existing homestead tax exemption found in the Florida Constitution. Property owners currently benefit from two exemptions of $25,000 each, allowing them to reduce the taxable value of their homes by a total of $50,000.  This measure would introduce an inflation adjustment on the second $25,000 exemption.

Under this proposal, property assessments would be indexed to changes in the U.S. Consumer Price Index (“CPI”) as of January 1 of the taxable year. The CPI is a measure of inflation that tracks the average change in prices for a basket of goods and services purchased by urban consumers.  The passage of this bill would allow homeowners to receive an adjustment to their homestead tax exemption to account for inflation.  For instance, if inflation is measured at 9% on January 1, 2025, the homestead tax exemption for 2025 would increase from $25,000 to $27,500.

The full text of the bill can be found here.