As the cost of everyday items continues to rise, many people are looking for creative ways to cut costs. And while for some people that means swapping name-brand items for store brands while shopping, there are some expenses that are a little bit harder to escape, like property taxes.
However, several states are starting to announce changes to how they collect school and property taxes, pushing new initiatives that are designed to make it a bit easier for homeowners. Florida is among the latest states pushing a change, and the future of the Sunshine State’s homestead exemption hangs in the balance.
Voters will be asked to make a decision when they head to their local polling places in November. If passed, homeowners living in high-value areas will see a bigger reduction in their property tax bill. However, the communities that rely on that money to fund the local government may be left in the lurch.
And Florida isn’t the only state talking about these kinds of changes either, prompting some to wonder if changes are heading to their neighborhoods as well.
Florida Residents to Vote on Expanding Homestead Exemptions
According to the St. Pete Catalyst, voters will be asked if they would like to see the state make a constitutional amendment that would allow more people to take advantage of homestead exemptions starting in 2027. If 60 percent of voters say yes to the measure, Florida residents could see the 2027 exemption increase to $150,000, and $250,000 the following year.
This would also see the non-homestead assessment cap drop from 10 percent to five percent.
Just how much cash that will put back into people’s wallets will depend on the assessment value of their homes, with the publication saying that many people would see hundreds of dollars’ worth of savings each year, while those with more expensive homes could see much higher returns.
Other States Are Considering Changing Property Tax Requirements
Residents in the Sunshine State aren’t the only ones who could potentially save on their taxes in the coming months and years. According to Investopedia, both Montana and North Dakota have already lowered property taxes, while places like Ohio and Kansas are on the lookout for ways they can reduce property taxes or find a way to calculate them that doesn’t rely on home values.
That’s because property taxes have been on the rise across the board, according to the publication, which says that they have increased an average of 30 percent since 2019. While a lot of that can be attributed to rising home values after the pandemic, many people say that these increased costs are making it harder for them to afford to stay where they currently live.
Whether these changes are enough to move the needle remains to be seen, but it’s clear that the rising cost of living is hurting many homeowners across the country, making it clear that something needs to be done to help make housing more affordable.