I assure you I am not alone in this. I got into journalism specifically because there wasn't much math required. (Here's a paradox for you -- I tested out of the only math requirement I faced in college.) Readers see the fruits of this every day in silly math mistakes, poor statistical analysis and gullible recitations of suspect polling data in the morning paper.
Neither are reporters at large alone in this. The general population is pretty innumerate, too. That's no excuse, just context.
So, Floridians face a vote Jan. 29 on a constitutional amendment about property taxes. To understand it requires a certain amount of math knowledge, along with a familiarity with property taxation methods. We in the Florida Capital Bureau have been working on a series of stories and graphics to try and explain the proposal.
The proposed $9.3 billion tax cut requires 60 percent for passage. That's three out of five voters (see, I can do this).
Our work has necessitated revisiting our SAT-prep days, when there was no more frightening phrase than "word problem."
Consider, for example, the actual language of the change to the constitution that is proposed. You can take a look at the whole thing here.
This portion from the actual language is about portability – taking Save Our Homes benefits with you to a new home. This is, in part, what you're voting on.
"1. If the just value of the new homestead is greater than or equal to the just value of the prior homestead as of January 1 of the year in which the prior homestead was abandoned, the assessed value of the new homestead shall be the just value of the new homestead minus an amount equal to the lesser of $500,000 or the difference between the just value and the assessed value of the prior homestead as of January 1 of the year in which the prior homestead was abandoned. Thereafter, the homestead shall be assessed as provided herein.
"2. If the just value of the new homestead is less than the just value of the prior homestead as of January 1 of the year in which the prior homestead was abandoned, the assessed value of the new homestead shall be equal to the just value of the new homestead divided by the just value of the prior homestead and multiplied by the assessed value of the prior homestead. However, if the difference between the just value of the new homestead and the assessed value of the new homestead calculated pursuant to this sub-subparagraph is greater than $500,000, the assessed value of the new homestead shall be increased so that the difference between the just value and the assessed value equals $500,000. Thereafter, the homestead shall be assessed as provided herein."
Yeah, me neither.
I am assured that what this says – and we struggle mightily to come up with new ways to state this as plainly as possible – is:
· You can take your Save Our Homes tax shelter with you, up to $500,000, to a new home.
· If you downsize, take the same proportion of SOH with you. If half of your current home is protected by Save Our Homes, half of your new home's value will be tax protected.
The good folks at the Department of Revenue have put together their own cheat sheet.
Here's what that document's section on portability says:
"Currently, if you are a Florida homesteader and you buy a new home and make it your homestead, your new home will be assessed at market value the first year you own it.
"If the amendment passes, some or all of the difference between your old homestead's assessed value and its market value can be applied to the assessment of your new home in the first year you own it. "Then the "Save Our Homes" limit will apply each year after that.
"How much of the difference between assessed and market value ("Save Our Homes difference") can be applied depends on how the value of your new home compares to the value of your old home.
"If the new home's market value is the same or greater than the old home's market value: the entire difference will be applied to your new home, so that the difference between the market and assessed values of your new home will be the same as the difference between the market and assessed values of your old home.
"If the new home's market value is less than the old home's market value: the entire amount of the difference will not be applied to the new home.
"Instead, the new home's Save Our Homes difference will be the same percentage of its market value as the old home's difference is of the old home's market value. For example, if the old home's Save Our Homes difference is 40% of its market value, the new home's difference can be determined by multiplying 40% times the new home's market value. Then subtract that amount from the market value to arrive at the assessed value."
Trust me, that's pretty close to as straightforward as you can get while covering all the bases.
Then the DOR report offers examples. Boiled down here are a few of the scenarios it offers, with calculation on what that means to the pocketbook based on a statewide average millage:
· Current home worth $250,000 with an SOH assessment of $175,000. New home costs $250,000. Portability saves $1,203.
· Current home worth $200,000 with an SOH assessment of $150,000. New home costs $300,000. Portability saves $802.
· Current home worth $300,000 with an SOH assessment of $100,000. New home costs $500,000. Portability saves $3,209 in taxes.
· Current home worth $250,000 with an SOH assessment of $150,000. New home costs $200,000. Portability saves $1,283.
· Current home worth $600,000 with an SOH assessment of $300,000. New home costs $300,000. Portability saves $2,407.
Do you get it? Can you figure out how it would work for you?
How about this: The longer you've lived where you are, the sweeter the deal. The shorter you've lived in your current homestead, the more upset you'll be about neighbors paying less in taxes than you.