In 2004, Florida ranked forty-fifth among the fifty states in terms of the state and local tax burden imposed on its residents. This statistic should not surprise anyone who is familiar with Florida’s constitutionally imposed tax structure that provides for prohibitions against certain taxes and exemptions from others. Floridians do not care to be taxed, and the State’s Constitution reflects that sentiment.
The homestead exemption is one such constitutional right that is deeply ingrained in Florida’s history. The original purpose behind the homestead exemption was to protect the family unit from losing its home during times of economic hardship. Today, the Florida Constitution protects the homestead by placing restrictions on transfer, allowing significant exemptions from creditors’ claims, and providing for a $25,000 tax exemption on the taxable value of a primary residence. This Comment will focus on part three of the homestead equation, the $25,000 tax exemption, and its interplay with the more recently passed Save Our Homes Amendment. While reducing the property tax burden on permanent resident homeowners, the $25,000 tax exemption has also removed billions of dollars from the State’s tax rolls each year since its passage in 1980.