Special Session Ends; Results Uncertain
Jun 14, 2007
CIVIC Concern is working with tax experts and economists to develop an in-depth analysis of the proposed amendment. We’ll be posting articles with plain-language explanations to help you make an informed decision before you vote.
In addition, CIVIC will be releasing some innovative policy proposals that offer alternatives to the proposed amendment. In the Legislature’s rush to pass legislation, they have failed to spend the necessary time and effort to develop broad-based proposals for reform that address the needs of all Floridians – homeowners, renters and business-owners – while taking care to protect important government services, including education.
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The Legislature ended its special session on property taxes today after passing two bills touted as the solution to the tax crisis. There is no consensus, however, that the legislation will result in relief for those that need it most, and many are concerned about the impact on education funding and government services.
The first piece of legislation, known as the “roll-back bill,” requires local governments (excluding school districts) to take several steps to reduce taxes right away. First, all cities, counties and special districts must adopt last year’s tax levy. Then, cities and counties must further reduce taxes by 3%, 5%, 7% or 9%. The size of the required tax cut is based on how much their tax levies have increased in recent years compared to the statewide average.
This bill also includes a revenue cap, which allows increases in local government tax revenue only to account for new population growth and the growth of Florida personal income (normally around 4%). This revenue cap provides protections for all property owners, not just homeowners. Small businesses and renters, who have never been able to take advantage of the protections of the Save Our Homes cap, will no longer face dramatic and unpredictable yearly increases in their property taxes.
The Legislature also passed a proposed constitutional amendment and put it on the January 29, 2008 ballot with the presidential preference primary. The amendment will require a 60% super-majority to pass.
The proposed amendment, if passed, would allow homeowners to choose to give up their Save Our Homes cap in exchange for an increase in their homestead exemption from $25,000 to 75% of the first $200,000 of home value, plus 15% of the value from $200,001 to $500,000 for a maximum exemption of $195,000.
Currently, the Save Our Homes cap prevents property appraisers from increasing the taxable value of a homesteaded property by more than 3% per year. Because home prices have risen rapidly in much of the state, many homeowners will be reluctant to give up the protection of the 3% cap because the assessment of the taxable value of their home could be increased dramatically.
Comment on this article and discuss the issue in the CIVIC Forum.
News Coverage
St. Petersburg Times: On Day Three, A Tax Deal
Miami Herald: Lawmakers Cut Property Taxes; More May Come
Tampa Tribune: Save Our Homes: Keep It? Drop It?