FAA Supports Amendment 2 to Save Cap on Taxable Property Values
A cap on tax assessment increases for certain properties — including apartment communities —is scheduled to expire unless voters pass Amendment 2 on the ballot in November. The Florida Apartment Association supports Amendment 2, which would make permanent a 10 percent cap on increasing the taxable value of non-homestead properties. Non-homestead properties include multifamily and other rental properties, as well as businesses.
Nearly 10 years ago, Florida voters elected to implement a temporary 10 percent cap. This year, 100 percent of the state Senate and 97 percent of the House voted to put the amendment on the November ballot.
Before the 10 percent cap was in place, Florida’s property taxes doubled in only six years. Almost all of that increased taxation came from non-homestead properties. For example, almost 75 percent of non-homestead properties statewide saw an increase of more than 10 percent in value. After the cap, some businesses were able to pass the savings on to consumers while others were able to expand and create more jobs.
If the cap is not reauthorized, yearly assessments could increase by any amount for non-homestead property. This could mean apartment owners would see a jump in their property taxes in 2019. Drastic property tax increases could also result in a loss of apartment industry jobs.
FAA supports Amendment 2 and urges members to vote “yes” on Amendment 2 in November.