[SKB]

TALLAHASSEE — The Florida Senate unveiled its property tax relief package Thursday that retains Save Our Homes protections while rolling back property tax rates to 2005-2006 levels.

The rollback would account for population growth and inflation. The rates would be set and frozen for two years. After that, local governments would be prevented from increasing revenue faster than inflation.

Citing the requirements of class-size reductions, public school districts would not be required to roll back rates.

The Senate plan:

• Retains the Save Our Homes protections for homeowners and allows them to take up to $500,000 in savings with them when they move.

• If a homeowner purchases a more expensive home, tax increases would be limited to 10 percent a year until the tax equaled the new property's purchase value. Thereafter, the increases would be capped at 3 percent.

• First-time homebuyers would receive an additional $25,000 exemption, bringing to $50,000 the amount of property tax exemptions they would receive in an effort to break into the market.

• Small businesses would be awarded a $25,000 tangible personal property tax exemption. Senate sponsors say it would eliminate the need for almost 1 million businesses to file tangible tax returns and reduce the amount paid by 300,000 more businesses.

• Landlords would benefit. Tax assessors would be required to estimate taxes owed based on rental income and not on a property's market value.

The homestead exemption, tangible property taxes and portability issue would have to be added to the constitution and therefore approved by voters. Backers would need to persuade three-fourths of their colleagues to agree to put the issue on the ballot in November.

The Senate proposal is the latest in a series of plans unveiled over the past several weeks as lawmakers try to address a statewide hue and cry over skyrocketing property tax rates. Fueled by a low interest rates and white-hot real estate markets beginning in 2004, property taxes soared in most counties.

More details of the plan will be available Friday as Senate Finance and Taxation members discuss the proposal. A committee vote is expected Tuesday.

A House plan released earlier would roll back rates to 2004 levels, providing more immediate relief. That plan also calls for raising the state sales tax by 1 cent while giving local voters the chance to increase that by an additional 1.5 cents on the dollar.

The Senate plan would save taxpayers about $11 billion over the next five years. The House Plan provides $6.3 billion of immediate property tax relief in year one, and up to $15.8 billion by year three.



I think this is unfair to new home owners as a 50,000 exception is NOTHING compared to a savings of 500,000.

[pianogal]

I don't see how that's going to help those of us who just moved. Can someone enlighten me? I moved from a home in Winter Park paying 1300.00 a year to a newly built home in Orlando and now I pay almost 5K a year. Is there going to be anything in there to help me...or am I just out of luck?

[tallrick]

They need to roll taxes back to 2001 levels! Or just do the simple thing, tax based on purchase price + inflation. This proposed plan is a slap in the face to Floridians. Save our homes needs to go, it's just wrong! Say it with me, tax based on purchase price, raise taxes based on inflation....PERIOD!

[riverviewnative]

All smoke and mirrors. In the end nothig will change. At not for the better.

[Donna-50]

[quote=SKB;570729]TALLAHASSEE —

• Retains the Save Our Homes protections for homeowners and allows them to take up to $500,000 in savings with them when they move.



What does that mean?

[tallrick]

it means we just get screwed. Government at work as usual.

[SKB]

Here is another version of the proposal, seems like there are some different opinions of what this tax reform is actually doing.
This one is saying the portability will only apply for the first year and then over time with a 10% yoy increase until purchase price. This is different from the 500,000 in savings they were saying earlier.

Which meant a current homestead property owner would be able to take the difference between the property appraiser's market value and assessed value on their property with them up to a maximum of $500,000

So, if they sold at 350,000 but were being taxed on an assessed value of 250,000 they would get the 100,000 savings transfered to the new property.
Meaning they are getting a tax break of 100,000 on the new house up to a maximum of 500,000.

This new article doesn't mention this so now I am confused or the person who wrote it didn't understand it. tomorrow all of the details will be announced.

As far as the 25,000 break for first time buyers that is a joke as it only works for a property valued UNDER 100,000. What exactly does 100K get you in Florida? I think you all know the answer to that one.

Here is the other article:

BILL KACZOR
Associated Press

TALLAHASSEE, Fla. - Republican and Democratic Senate leaders on Thursday released a bipartisan property tax reform package that significantly differs from a contentious plan being pushed by the GOP in the House.

Moderator cut: Provide a link instead of copying everything here, please

[seeriously]

I read many different versions in different newspapers trying to figure all this out. The following two paragraphs were taken from the Palm Beach Post...

""Making the savings a homestead owner accrues with the Save Our Homes cap portable, but with limits. Owners could take the current Save Our Homes savings on their primary homes with them when they buy a new house, but the taxable value of the new home would increase 10 percent per year until it reaches the level it would have been assessed at under the Save Our Homes cap, which limits increases to the lesser of 3 percent or the increase in the Consumer Price Index.



For example, if someone with $100,000 in Save Our Homes savings buys a $400,000 home, the taxable value of the new house would be $300,000. Under the Senate plan, the homeowner's tax would be $5,349 instead of $7,388 in the first year in the new home, based on a statewide average property tax rate. But the $300,000 taxable value would increase at 10 percent a year for six years, when its value would be $483,153 and its annual tax $8,615.""

So what exactly is this? If you move, you get a temporary break from high taxes but then you're slapped with an escalating property tax bill, 10% a year?

[Nirvana-Guy]

The FL House has passed a MUCH better plan!

The FL Senate (just as the corrupted US Senate) passed a crappy plan.

People, CALL YOUR FL STATE SENATORS AND DEMAND (DO NOT ASK) FOR THEM TO ENDORSE THE FL HOUSE PLAN TO ELIMINATE THE PROPERTY TAXES!! TELL THEM YOU ACCEPT NOTHING LESS THAN A COMPLETE ELIMINATION OF PROPERTY TAXES FOR HOMES VALUED LES STHAN $300,000!

Here is how you find their #s (using your zip code):

http://www.leg.state.fl.us/Welcome/i...TOKEN=19965904

[Arrgh]

Nirvana-Guy,

GREAT post! I just called both of my Reps' about this and sounded off about the taxes. I also mentioned that I wiiukd be watching how they vote and if they do not vote for SUBSTANTIAL reductions, I will vote for whoever is running against them. As an interesting sidebar, members in the US congress use a simple formula to guage how hot a topic is. They figure that for every letter/email/call they get there are another 1,000 voters who feel the same way.

Once again EXCELLENT post.