Oct 30, 2007 12:53 am US/Eastern
Senate Passes Property Tax Relief Plan
TALLAHASSEE (CBS4) ―
A leaner, simpler property tax relief plan has cleared the Senate and is awaiting final action by the House.
The proposed state constitutional amendment would increase exemptions for primary homes on average of $220 a year. Also, for the first time it would cap assessments on other properties; businesses, second homes and rentals.
A "portability" provision would let homesteaders take at least part of the benefits they get from the existing Save Our Homes assessment cap with them when they move.
The House now faces little choice but to take the proposed compromise or leave it.
The new plan is expected to save taxpayers, but will cost cities, counties, special districts and school boards an estimated $8.74 billion in the first four years. That's about $1 billion less than previous proposals in both chambers although they differed significantly on the details.
The compromise (SJR 2D) is a streamlined version of what the
Senate passed two weeks ago with the addition of a scaled-down variation of the House's new assessment cap for businesses, second homes and rentals.
House Speaker Marco Rubio, R-West Miami, was disappointed the Senate refused to accept the previous House plan but said the compromise is better than doing nothing.
"This state has a tremendous opportunity at this moment to do something extraordinarily deep and meaningful on the biggest issue we will face this decade, perhaps in the next few decades," Rubio said. "Every option before us has consequences that are less than ideal."
Senate Democratic Leader Steve Geller, of Cooper City, said the measure wasn't everything he wanted either, but it was better than either chamber's previous plan.
Support from Democrats, who were worried about cutting too much money from local government especially school districts, was critical. They represent enough votes to prevent the measure from getting on the primary ballot, which requires three-fourths approval in each chamber.
"We really have no option, Geller said. "This is the deadline, this is where we are."
Polling shows doubling the existing $25,000 homestead exemption, a key plank in Gov. Charlie Crist's election campaign last year, is the most popular of the major tax-cutting ideas the Senate has agreed upon. The compromise would double the exemption but only for homes valued at more than $50,000 and not for school taxes.
Only 6 percent of Florida's homesteads will not qualify for the added exemption, said Senate Finance and Tax Chairman Mike Haridopolos, R-Indialantic.
The House initially had passed a more complex provision that would have given homesteaders an exemption equal to 40 percent of the median home value in their county, also except for school taxes.
Save Our Homes now limits annual assessment increases to 3 percent for homesteaders. The compromise would provide a 10 percent cap for non-homestead properties, again except for school taxes. The Senate previously had no such provision while the House had a more protective 5 percent cap for all taxes including schools.
The two chambers previously had agreed on providing portability for up to $1 million in Save Our Homes benefits but the compromise reduces that to $500,000.
It leaves untouched a previous provision approved by both chambers that would give businesses a $25,000 exemption on equipment and other personal property. The compromise also removed provisions that would have given additional tax breaks to first-time home buyers, low-income seniors and marinas and other "working waterfront" properties.
Sen. President Ken Pruitt, R-Port St. Lucie, and Rubio called lawmakers into special session Oct. 12 after a judge removed a prior proposal from the ballot because it had an inaccurate and misleading summary.
The Senate passed a replacement plan two weeks ago and went home. The House passed its version last Monday and also left Tallahassee. Pruitt indicated the Senate might not return at all, but Friday he notified senators to come back Monday. The compromise, though, was not finalized until Sunday.
(© 2008 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
