Mar 18, 2008 7:58 am US/Eastern
Panel Puts 25% Property Tax Cut On November Ballot
Some Teachers Say This Will Severely Hurt Public Education
The Proposal Would Cut Prop Tax Bills By A Third
TALLAHASSEE (CBS4) ―
A new tax cut being, touted like no-other proposed these last two years, promises to slash 1/3 of taxes from the average homeowner's bill, but it would require voter approval come November. The 25-member Taxation and Budget Reform Commission decided on a proposed state constitutional amendment that will cut property tax by about 25 percent statewide and replace it with a penny increase in the 6-cent sales tax.
The property tax relief is above the average in South Florida. The proposal eliminates an average of 33 percent of all property taxes in Miami-Dade County and 35 percent in Broward County.
The measure would eliminate property taxes that the Legislature requires school districts to levy in order to qualify for state aid.
Lawmakers would have several options for replacing the $8 billion in lost property taxes, including a 1 percentage point increase in sales tax.
School districts could continue to levy other property taxes if they have been approved by voters in the past. But because the additional sales tax may make up only about $3.3 billion to $3.9 billion, the Legislature would have to come up with an estimated $9.6 billion in 2011 to pay for schools from a list of options that includes repealing sales tax exemptions, raising additional sales taxes, relying on growth or cutting spending.
The panel voted 21-4 in favor of putting the proposal on the November ballot.
House Speaker Marco Rubio heavily supported the measure.
After the vote, Senate President Ken Pruitt issued this statement:
"Florida Taxpayers will now have another opportunity to vote for property tax relief, adding to the billion of dollars in tax cuts they voted for on January 29th. I congratulate Speaker Marco Rubio for his leadership. His persistent effort to cut property taxes and his strong influence with the Taxation and Budget Reform Commission clearly carried the day."
But teachers are saying this could be the demise of the state's education system.
"So now we're talking about cutting the source of revenue," said Karen Aronowitz, of the United Teachers of Dade. "We have no clear indication that it's gong to be replaced, and then we're left with the hope that the legislature will make up for these shortfalls."
Miami-Dade County Public Schools has already let go of teachers' aides and plans to charge teachers for their health insurance in order to meet the demands of current cuts.
Rubio, however, points to another problem in Miami-Dade.
"And the school board has some of the highest paid administrators in the country, including people that make more money than the president of the United States," he said.
(© MMIX CBS Television Stations. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. CBS4 news partner The Miami Herald contributed material for this report)
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