Homestead exemptions

In 1992, the State of Florida passed a constitutional amendment to cap the increase in the annual assessment of homestead properties. The amendment, known as Save Our Homes, has created a horizontal equity problem as neighboring homeowners may be paying substantially different amounts of property taxes on similar properties. In light of the recent property tax reform attempts, it is appropriate to analyze the effect of a change in Florida's homestead exemption and Save Our Homes provision in order to eliminate the inequity problem. In this paper I will show that by replacing the homestead exemption and Save Our Homes Cap with a property tax levy limit and adjusting the millage accordingly there exists the potential to alleviate the horizontal inequities associated with Florida's property tax system.