On June 2, the Florida Legislature passed HJR 1 during a special legislative session. The proposal amendment, officially titled the "Save Our Homes from Excessive Property Taxes" would substantially increase the homestead exemption for Florida residential property owners, starting at $150,000 in the first year and phasing upward from there. It now goes to Florida voters in November and needs 60 percent approval to pass.
For homestead property owners, this is straightforward relief. For business owners, the picture is more nuanced, with important opportunities and considerations extending well beyond property tax issues.
What HJR 1 Means for Business Owners: The Tradeoffs
Florida’s property tax system funds local governments and schools. HJR 1 presents a genuine tradeoff that affects homestead and commercial property owners differently, and business owners should weigh both sides before November.
Potential benefits: For business owners who also own their homes in Florida, the expanded homestead exemption represents real annual savings. Broader property tax relief may also stimulate consumer spending, which can benefit Florida businesses indirectly. Supporters of the amendment argue that reducing the residential tax burden strengthens Florida’s competitive position as a destination for new residents and businesses.
Potential risks: The homestead exemption expansion removes a significant amount of residential assessed value from the local tax base. Local governments facing a funding gap may raise millage rates on the remaining taxable property, which includes commercial and non-homestead properties. At the state level, Florida has no income tax, and when revenue pressure builds, the sales tax base is historically where the legislature has turned through rate adjustments, expanded taxability, narrowed exemptions, or more aggressive audit enforcement. Fiscal analysts have raised concerns about the scale of the revenue dislocation if the amendment passes, though projections vary.
What Commercial Property Owners Should Do Now
If you own commercial real estate in Florida, the most actionable thing you can do before November is pull your most recent TRIM notice and compare the assessed value against the current market. Property values have shifted significantly over the past two years, and assessed value does not always keep pace. If there is a meaningful gap or if you believe the assessment is wrong, you have the right to challenge it through the Value Adjustment Board process. The deadline is strict: typically 25 days from the date the TRIM notice is mailed. Whether or not HJR 1 passes, this review is worth doing on its own merits. An incorrect assessment costs you money every year you do not challenge it.
Related Articles:
- Beware of revocation of Homestead Exemption and clawback provisions
- FL Taxpayer's Ad Valorem Property Tax Exemption Upheld
Pull your TRIM notice when it arrives this summer. If the assessed value of your commercial property does not reflect current market conditions, the Value Adjustment Board is your remedy, but the filing deadline is 25 days from mailing. Missing it means waiting a full year.
Ask Us Anything
Q: Can I challenge my commercial property assessment if it went up significantly this year?
A: Yes, through the Value Adjustment Board process, which has strict deadlines tied to your TRIM notice. The process is available to any property owner who believes the assessed value does not reflect fair market value. An attorney can help you build the strongest case before the deadline.