Property Tax Cap Expiring Could Cost Businesses $700 Million
October 16th, 2018 by Jake Stofan
Florida businesses and renters could see a $700 million increase in property taxes at the start of 2019.
That’s the message groups supporting Amendment 2 want voters to consider before casting their ballot in November.
Before 2008 businesses, rental property or second homes faced unlimited increases in property taxes as values skyrocketed.
A constitutional amendment capped annual property tax increases for non-homestead properties at 10%, but the cap is set to expire at the end of the year.
“This cap is very important for renters, for businesses, for communities, for anyone who buys literally anything, any kind of consumer,” said Beth Matuga, Campaign Manager for Everybody is For Amendment 2.
Amendment 2 would extend the cap permanently if it passes.
A coalition of groups supporting the amendment including Florida TaxWatch and Florida Realtors say without the amendment, huge tax hikes are likely.
“Nearly a billion dollar recurring tax increase for businesses throughout the state,” said Robert Weissert, Vice President of Florida TaxWatch. “This will stifle growth. It will cost jobs. It will increase costs for consumers.”
Opponents of Amendment 2 say it’s a tax break for big business, but supporters say small businesses also stand to suffer if the cap is lifted.
Anna King owns Cabello’s Salon and Spa in Tallahassee.
She says any spike in property taxes would drastically increase her rent.
“You know with everything prices rise, but my rent is the highest thing that I have,” said King.
Supporters of Amendment 2 say if the cap expires, an estimated 5.6 million properties in the state would see rapid property tax increases.
Annual property tax increases for homestead properties are capped at 3% a year.
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