Property Tax Reform: Here We Go Again!
For the umpteenth time, there is another Property Tax Reduction proposal being floated! The new version replaces the “Super Homestead Exemption” Constitutional Amendment that was legally axed from being placed on the January 29 ballot due to faulty wording.
The plan Gov. Charlie Crist is now proposing would save $6.3 billion over five years - $3.0 billion short of the cuts promised by the original plan developed by the Legislature. Crist’s proposal would:
(1) Double the $25,000 homestead exemption and, for the first time, index it to inflation.
(2) Allow people to keep their Save Our Homes benefit when they move.
(3) Provide discounts for first-time home buyers.
(4) Reduce taxes on business equipment.
Unlike the plan it would replace on the Jan. 29 ballot, Crist's proposal would not affect school budgets and preserves Save Our Homes, which caps annual property tax increases at 3 percent, for all primary homeowners.
The new homestead exemption would take an estimated $3.9-billion from local government over five years - but the average taxpayer would get only $214 in savings per year.
Under Crist's "portability" proposal, a person could take all of their Save Our Homes benefit when moving to a more expensive home. When buying a less expensive house, the homeowners would pay taxes on the same percentage of market value as they did on their old home.
First-time home buyers - whether already living in Florida or moving here from another state - would get an additional exemption equal to 25 percent of the just value of the home. The estimated annual savings would average about $700.
Businesses would get a $25,000 exemption on tangible personal property - far less relief than they want.
What do you think about the proposal?
posted by Blog Master @ 12:10 PM
25 Comments:
Hardly worth the effort. The tax savings are chump change.
MORE CHANGES!
Speaker of the House Marco Rubio is offering an additional $3-billion in tax cuts to Crist's $6.3-billion proposal, bringing it back to about the level of the tax reform package it is replacing.
Included in Rubio’s proposal are curbing "highest and best,"; assessing affordable housing at less than just value; eliminating property taxes for low-income seniors; and creating exemptions for homeowners who make energy efficiency upgrades. Rubio also called for changing the way people challenge assessments -- putting the burden of proof not on the homeowner but the property appraiser.
Looks like the current Special Session will be extended to try and resolve the Property Tax issue.
Should help the real estate market.
$214,,,,you can't be serious!!!
The Crist + Rubio plan is a done deal with the Senate and House Republicans. Let's wait and see how the Democrats screw it up.
I'd say this is going to be too complicated for the average voter to understand.
Don't you just love it when the state legislature tries to run local government especially when they enjoy spending every dollar they take from us?
Voice of Reason says . . . .
PWF did it again, I just got done writing a great entry under "Convention Center" and the topic got changed to tax reform.
VoR
Voice,
The blogman put the property tax section on here a day before you posted your comment about the Convention Center. I read it, so it was not missed because of the convention center posting. I always look for your pearls of wisdom!
When election time rolls around, remember who stood in the way of meaningful tax reform: the local governments, moderate Senate Republicans, and Democrats.
Add to the Crist/Rubio ideas a rollback in local taxes and spending to 2002 and I'll buy tax reform.
So Voice, how did I do it again??? tell me again. I don't get your comment. --pwf
Voice of Reason says . . . .
I thought that PWF was running this blog because, many times after I respond to his comments or otherwise write something that I'm proud of, the topic get immediately thereafter changed.
I learned here, however, that I'm completely wrong. I'm convinced that PWF is not the blogmaster and the topic is not changed just because of my response to PWF.
I'll keep posting either way.
VoR
Index the Homestead Exemption to inflation figure. Great change!!! We can at least keep up a little with the indexing at county/city levels of expenses.
More Republican smoke and mirrors. It's going to take citizen action in mass to get any good tax releif. The government doesn't have the balls to do it.
Voice of Reason says . . .
The proposals seem complicated. How about just a reduction in taxes? No smoke and mirrors as someone said.
In a distant previous thread, some contributors thought that the award that the Sheriff's Office was wasting taxpayer's money to attain was: (1) worth the money and (2) not a phony award. Well, Al Gore "winning" the Nobel PEACE Prize serves as a great example. Gore's usurpation as the face of global warming consciousness was something that his publicist and PR consultants dreamed-up. His big money friends, political activists, and the Clintons then lobby the Nobel committee to find a way to give him an award. The Nobel Committee, struggling to remain relevant, look for a big name like Gore to bring attention to their organization. The Committee then gives the Peace Prize to a person whose efforts had nothing to do with peace. As I mentioned earlier, all awards are complete frauds from the Grammy to the Academy Awards to the Nobel Prize. Why then would anyone support spending taxpayer's money for a Sheriff to get an award?
VoR
House Speaker Marco Rubio on the property tax solution:
"If this crisis is a 10, this solution is a 2," Rubio, R-West Miami, told reporters. Yet Rubio said he's going along with the plan because Crist campaigned on portability and doubling the homestead exemption and it's important to deliver on his fellow Republican's promise.
The additional $25,000 homestead exemption and the Save Our Homes portability will not apply to school property taxes, which represent about 40 percent of the overall property tax bill. The savings are not going to be nearly what we are being told. DECEPTION!!!
Repeat, repeat....
Rollback taxes and spending to 2002 levels, and extend SOH to ALL property, residential and commercial.
Works for me.
Charlie Crist is a big disappointment.
Here is an add-on to the roll back of taxes and spending suggestion--
Eliminate the school portion from property taxes and add 1% more in sales tax. That would save homeowners about 40%.
A summary of the current property tax proposal being discussed by the Florida House and Senate (source: Tallahassee Democrat—10/16):
Double homestead exemption: Provides an additional $25,000 homestead exemption on property values between $50,000 and $75,000. Does not apply to school taxes.
Low-income senior exemption: Those 65 or older with household income under $23,604 are exempt from all homestead property taxes, including school taxes.
First-time home buyers exemption:
First-time homebuyers would get an additional exemption of 25 percent of the value of their new home, with a maximum equal to a quarter of the county average home value. The exemption decreases as Save Our Homes protections increase. Does not apply to school taxes.
Portability: Homestead property owners could transfer their Save Our Homes protections to a new homestead within two years of selling their previous homestead. Full amount could be transferred if the new house is worth more. A prorated amount would transfer on homes worth less than the original. Does not apply to school taxes.
Affordable housing: Rent-restricted affordable housing would be assessed as work-force rental housing. Full assessment would apply to school taxes.
Tangible personal property exemption: A proposed $25,000 exemption on business' tangible personal property taxes. Applies to all taxes.
Millage rate restrictions: Local-government property-tax revenues would be capped in 2008-09 to preserve reductions of other exemptions. Does not apply to school taxes.
Local government property tax limitation: The Legislature would have to limit local governments', except for schools', property-tax increases. Requires voter approval.
Presumption of correctness: Would limit appraiser's presumption of correctness in taxpayer challenges of a value assessment of non-homestead property, if the increase in assessment is greater than the overall increase for all properties in its class. Applies to all taxes.
Property appraiser election: All property appraisers would have to be elected.
Affordable housing owned by a limited partnership: Would limit assessments on improvements to real property owned by a community land trust and would provide a tax exemption to affordable housing owned by a limited partnership, if the sole general partner is a not-for-profit corporation.
ARE YOU EVEN MORE CONFUSED!!!!
I'm taking a wait and see attitude on Crist's proposal. Not sure the break is enough but at least it contains the two absolutely essential parts: Keeping the Save Our Homes protection and Indexing the break to inflation. The original 25,000 break on value was probably great when it was first enacted but it offers very little benefit at todays prices.
The House has placed some amendments on the bill including no non-homestead propeties can be assessed more than 3% over the previous year. Buydown the school tax on your bill with a one cent sales tax. The amount collected provides no lost revenue to the schools, but a significant reduction of the tax bill. It's not over yet but it appears Rubio is working hard to lower the tax from the original bill submitted by Crist.
THE SENATE KILLED THE 3% PROVISION TODAY. WATCH THEM AND THE DEMOCRATS SCREW UP ANY IDEA OF TAX SAVINGS.
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