Cost of Homestead Exemption

Palm Coast Finance Director Ray Britt said the changes to the homestead exemption will cost the city $1.5 million to $2 million, but tax revenue generated by new construction could make up most of that loss.
The big question mark, Britt said, is the portability issue.
The ability of homeowners to take their Save Our Homes savings with them when they move to another homestead property will have an impact on property tax revenue.
The real impact of the portability issue may be a slowing effect on growth, and that means it will have more of a long-term effect on revenue, Britt said.
"Normal growth in property values runs anywhere from 5 percent to 8 percent," he said. "I think what we will see now is the growth being more in the 1 (percent) to 3 percent range."
The Flagler County school district stands to lose $12.5 million in the next five years, said Tom Tant, the district's finance director.
The district should do well, however, thanks to strong commercial development in the county and continued increases in student enrollment, Tant said.

News Journal excerpt from Feb. 10th
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