Homes

Time Is Running Out For House Tax Relief Plan

Would Reduce Property Taxes By A Third

Senate Likely To Scuttle The Measure

TALLHASSEE (CBS4) ― Time is running out as the Florida House moves forward with a tax cut plan that would reduce an average property owner's tax bill by a third or more.

Under terms of the plan, taxes would be capped at 1.35 percent of a property's taxable value. The tax cap would apply to all homeowners, businesses and visitors who have a second home in the Sunshine State. It would apply to the taxable value of all properties and would be in addition to savings homeowners realized from a homestead exemption and other tax discounts. The Sun Sentinel reports the legislation would also place a cap on government revenues at all levels; including fees and increases normally associated with inflation and population growth.

If the measure passes in both the House and the Senate, the plan would be placed on the November ballot where 60-percent of voters would have to approve it.

While it sounds like it would offer serious relief to Florida's overburdened property and business owners, there are a number of sides lining up against it.

With an estimated tax savings near $6 billion in the first year, many local governments view the plan as a nightmare. The proposed revenue cuts and caps would come on top of millions in spending reductions that county's are currently working into their budgets for the 2008 – 2009 fiscal year.

Into addition to local governments casting a wary eye upon it, Senate leaders also appear leery of approving additional tax cuts before Amendment One, which voters approved last January, goes into effect.

Under Amendment One, the $25,000 homestead exemption for a homeowner's primary residence is doubled and the Save Our Homes tax assessment cap becomes transferable when residents move. Those savings will start showing up in tax notices that go out in August.

Some in the Senate say the House measure doesn't have enough votes to pass in the few weeks before the session adjourns because many are afraid of the further damage it may do to an already underfunded budget for public schools. The Senate companion bill of the House 1.35-cap proposal is currently stalled in the Senate's Finance and Tax Committee.

If the Senate fails to pass it, supporters say there's a second hope for the 1.35-percent cap; a citizen's petition drive which is currently gathering signatures to get it placed on the November 2010 ballot.




Source: Sun Sentinel

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