[logybogy]

Tax plan: Big savings, major cuts - 06/09/2007 - MiamiHerald.com (broken link)

TALLAHASSEE -- The Legislature is preparing to cut the average property-tax bill 7 percent this year, and then ask voters next year if they want to save far more by supersizing homeowner tax exemptions, under a plan Republican leaders released late Friday after weeks of secret talks.

Total cost to local governments over five years: $31.6 billion -- a record tax cut.

But the big number includes $7.2 billion from schools and $3.1 billion from taxing districts that support hospitals, water management districts and children services. Those cuts could spell political trouble for parts of the plan among Democrats.

The complicated proposal would fundamentally change the property tax system by capping and rolling back government spending, while expanding homeowner tax exemptions from $25,000 to a maximum of $195,000. It also seeks to punish governments -- including Miami-Dade County -- that taxed and spent more than the statewide average during the real estate boom years.

The package of proposals doesn't include any super-sized tax exemptions for those hit hardest by high taxes -- owners of second homes or commercial property -- though they would greatly benefit from the rollbacks and caps. Also, businesses would save more from a new $25,000 exemption on equipment, shelving and other tangible personal property.

[Mike1306]

Not exactly the plan I was looking for but I think this is a fair proposal.
This should also help bring the R.E. market out of the gutter.

[Audacious]

Originally Posted by Mike Peterson

Not exactly the plan I was looking for but I think this is a fair proposal.
This should also help bring the R.E. market out of the gutter.

I would like to believe this but it isn't even close. Taxes went up 200 to 300% in the last few years and now they throw us a bone of an 8% reduction. "Chump Change" The meat of the PROPOSED reduction is to be voted on in 2008 which means we will not see any relief until 2009 so the politicians get to screw us for another 2 years and that is working on the assumption that the proposal will pass. Do you really think all the seniors here will vote for that after the politicians and unions hammer into their heads that they will lose EVERYTHING if this law passes?? I doubt it. Remember the last few presidential elections, the Dems told the seniors that Social Security will end if they voted for a Republican. Just an example of the lies, not to divert into Left Vs. Right. In my book they both stink.

[pianogal]

What provision is there to keep the cities/counties from increasing the millage rate so this really doesn't help. Why should anything over 200K be taxed so much more? Don't they realize in a few years if/when property values go up again this will be obsolete? Putting it at ANY set figure will not accomplish anything longterm...it will set us up for another SOH disaster.

Why not just set it at a reasonable amount for ALL....say 1% or set an exemption at 75% of property value (as TN does) or my favorite -a increase in sales tax that has NOTHING as all to do with our homes! We all need a place to live - why should we have to pay taxes on it?

[FL_TN_Nana]

Originally Posted by Audacious

I Do you really think all the seniors here will vote for that after the politicians and unions hammer into their heads that they will lose EVERYTHING if this law passes?? I doubt it.

How could seniors lose everything if the law passes?

[kort677]

everyone needs to calm down, there is nothing that has been agreed to.

this is just a proposal for the upcoming legislative session.

There is and will be a lot of posturing and many more proposals to come out.

[MotleyCrew]

I am sure that we will all be faced with more taxation in the near future. With another 50 million "new" citizens with little or no work skills, who will be footing their retirement plan? Taxpayers. You can't expect property taxes to remain low if you have an influx of needy people flooding the state. You can't expect low wage earners to build up any kind of retirement either, so we must pay.

[firemed]

This was just put out .

TALLAHASSEE — Lawmakers propose a five-year, $31.6 billion property tax cut, a plan leaders promise if fully approved will save the average homesteader $1,300 in next year's tax bill.

Senate President Ken Pruitt and House Speaker Marco Rubio Friday released details of their plan lawmakers will take up beginning Tuesday in special session.

Republican leaders hailed it as tax relief for beleaguered Floridians and a bar against future tax spikes.

“Hardworking men and women who have suffered under skyrocketing property taxes in communities across our state are closer to finding the relief they so desperately need,” said Gov. Charlie Crist.

Democrats decried the deep cuts to counties, cities and possibly schools.

If approved fully, changes to the tax base would reduce the money coming in to schools. Rubio and Pruitt said they intend the state to make up the difference.

Analyses provided by legislative leaders showed more than three-quarters of resident homeowners would get a greater benefit than they do from existing Save Our Homes savings, and those who don’t could keep their tax savings as is.

All those tax savings come from the budgets of cities, counties and special taxing districts. The details released Friday included how much each county and city would be required to cut taxes after rolling them back to 2006-07 levels. There are four categories of mandatory cuts, ranging from 3 percent to 9 percent based on how those local governments have increased taxes in the last five years.

Cape Coral

For Cape Coral, one of the fastest growing cities in the state and one that relies on property tax money, the proposed maximum 9 percent reduction could mean about a $10 million cut in the budget. Over 60 percent of the city's general fund budget comes from property tax money. The city collected about $105 million last year.

“I guarantee you things are going to have to be cut,” City Manager Terry Stewart said.

Stewart’s frustration is he believes state officials should take into account a city’s growth rate and improvements before cutting into budgets.

Cape Councilwoman Dolores Bertolini said the proposed cuts could affect how she votes on issues at Monday's meeting, including an increase in impact fees.

“Ten million dollars is a lot of money,” Bertolini said. “We have to look at what projects will have to go. How many employees this might affect. I might change my whole thinking (Monday).”

Mayor Eric Feichthaler was looking at cutting the budget $10 million anyway.

“I look forward to reducing the budget at least that much this year,” Feichthaler said. “Ten million dollars out of the budget is not unreasonable. My goal is not make it affect the day-to-day operations of government and keep projects that people want like sidewalks and parks.”

Others

Lee County falls in the second-tier group of counties that will be required to slash tax revenues by 7 percent from 2006-07 levels.

That calculates to a $32 million cut to $428.5 million — still 13 percent more than the county collected in property taxes last fiscal year.

“I don’t think it’s going to be that dramatic a hit,” county commission Chairman Bob Janes said. “I don’t think you’re going to see us clobber personnel the way we thought we might have to at one time.”

Officials in Lee and elsewhere had been bracing for possible layoffs as reform debate swirled in the Legislature. Lee staffers compiled scenarios that showed cuts as steep as $169 million.

Lee has $57 million — available money tied up neither in bonds nor contracts — in its general fund reserve.

Budget Director Dinah Lewis said her staff will resume work Monday on evaluating the impact of the latest package, but she’s eager to see its final form.

Like Janes, fire district officials were relieved to find cuts weren’t as severe as feared.

“Considering all of the speculation and rumors, if that’s all the Legislature does, it’s more of a relief than anything,” said Lehigh Fire District spokesman Patrick Comer.

He said it still will be difficult. The Property Appraiser’s Office has notified the district a decline in property values will result in a 10 percent reduction in tax collections next year.

That means fire officials in Lehigh, the location of some of the county’s most destructive blazes in the past two years, would work with 13 percent less revenues than this budget year, Comer said.

Fallout

Rubio and Pruitt’s promises to make up lost money for school districts didn’t soothe education advocates.

Mark Pudlow, spokesman for the Florida Education Association, said the teachers union was not sure about the Legislature’s commitment to provide increased state-level funding to replace county revenues for schools. Even with best of intentions, he said, unforeseen events could force the Legislature to reassess spending priorities.

[kort677]

Originally Posted by firemed

This was just put out .

TALLAHASSEE — Lawmakers propose

that is the operative word, propose

all this is posturing, fleshing out the plans, and watching the usual public service advocates decry any cuts, sit back enjoy the fun the next few weeks offer and maybe we might actually see some concrete relief from taxes

[firemed]

Originally Posted by kort677

that is the operative word, propose

all this is posturing, fleshing out the plans, and watching the usual public service advocates decry any cuts, sit back enjoy the fun the next few weeks offer and maybe we might actually see some concrete relief from taxes

It should turn out like the HOI cuts.