What significant tax implication is associated with the Save Our Homes Act?

The correct answer highlights that the Save Our Homes Act primarily provides a limit on the amount by which property taxes on homesteaded properties can increase each year. Specifically, the Act restricts the annual increase in assessed value for these properties to a maximum of 3% or the percentage change in the Consumer Price Index, whichever is lower. This provision was designed to protect homeowners from significant property tax increases, helping to keep housing affordable for residents.

By implementing these limitations, the Act seeks to stabilize the financial burden on homeowners, offering them predictability in tax obligations despite fluctuations in the real estate market. This element of the legislation is crucial for maintaining property ownership for many residents, particularly in areas experiencing rapid growth in property values.

The other options do not accurately reflect the primary intention of the Save Our Homes Act. For instance, while property values may increase as a result of various factors, the Act specifically addresses tax increases rather than property value itself. Tax exemptions for businesses and reduced income tax rates do not relate to the context of the Act and its focus on residential property tax protections.