Tax Revisions

The following is an excerpt from a FAR news bullitin. Agree or disagree but let your senator know how you feel (if you don't, then don't complain later).


TALLAHASSEE, Fla. – Oct. 17, 2007 – A Florida House committee approved significant property tax relief yesterday afternoon that creates a 3 percent assessment cap on non-homestead and commercial properties that the state currently offers only to homestead properties.But senators, many unconvinced, now will consider the House’s revisions.

“FAR (Florida Association of Realtors) President Nancy Riley and our Tallahassee lobbying team met with House leaders late into the evening (Monday) night, and we have continued to make the case for property tax relief that would be felt by all property owners in Florida, not just homestead owners,” says John Sebree, FAR vice president of public policy. “(Yesterday) we met with numerous other elected officials, including the governor, lieutenant governor, and House and Senate leaders.” FAR’s meetings with lawmakers continued today.

The 3 percent yearly cap would also end Florida’s current property tax system that readjusts values when a property is purchased, meaning a new owner of commercial or non-homestead property would no longer be hit with a large and unexpected tax increase upon ownership since the assessment cap remains in place forever. (Homestead property would still be readjusted upon sale – property tax portability would offset that difference.) The House bill also calls for a penny increase in Florida’s sales tax to offset the decrease in funding from property taxes. The one-penny sales tax would “buy-out” the portion of the property tax for the “required local effort” (the school portion of everyone's property taxes). The money raised by the sales tax increase would be earmarked for education. House estimates call for a 15 percent across the board property tax reduction if this swap measure is included in the final package.

The House and Senate begin work today on compromise legislation, and FAR leaders don’t want important protections created in the House bill to be eliminated during the process.“Our focus now turns to the Senate,” says Sebree. “We need to apply pressure to Senators to accept these major additions to the current legislation being considered in the special session.

Don't be afraid to add your comments about anything. (taxes, rezoning, new babies, whatever).

Enjoy,

Bruce Howland


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