As you may know, Senate Bill 33 (SB 33), as passed, primarily targets homestead (residential) property tax relief, which creates several indirect and direct consequences for commercial property owners.
- Excluded from Assessment Caps: Unlike owner-occupied homes, commercial properties are not eligible for the new mandatory assessment caps.
- Potential Tax Burden Shift: Because local governments (cities, counties, and school districts) may lose revenue due to capped residential assessments, they might choose to raise millage rates to cover budget shortfalls.
- Sales Tax Impacts: The bill allows counties to implement a new 1% Local Homestead Option Sales Tax (LHOST) to further fund property tax reductions for homeowners.
