Last Tuesday, election day, Florida voters approved a property tax reform plan that may cut local taxes by $9.3 billion over the next five years. The proposal was heavily promoted by Republican Gov. Charlie Crist. With a majority of the precincts counted, the state constitutional amendment to increase exemptions on primary residences and expand a popular tax cap had 64 percent approval, according to the Florida Division of Elections, surpassing the 60 percent threshold needed.

Local governments, education officials and unions had called the savings estimates overblown and said the proposal would jeopardize public school funding and essential local services financed through local property taxes. However, lawmakers crafted the proposed amendment after local governments made billions of dollars in tax revenue as property values skyrocketed during an unprecedented real estate boom. Many taxpayers criticized their municipalities for spending the windfall on local projects even as property values fell with the current real estate slump.

The proposal increases the state’s homestead exemption to $50,000 from $25,000. The increased exemption, for homeowners who use their property as their permanent residence, would not apply to school taxes, however.

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