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1.) CAP PROPERTY TAX INCREASES: Enact a maximum 3% cap on increases with respect to assessments, for each levy, on all property.
Everyone has a budget and currently with no cap on inceases for non homestead property, how can taxpayers budget unrestricted increases?
2.) INCREASE HOMESTEAD EXEMPTION: one hundred and fifteen thousand dollars with respect to assessments.
The increase to one hundred and fifteen thousand dollars is an inflation adjustment, based on the last increase in the homestead exemption. In 1982, the exemption was increased to $25,000 dollars and the average home price in Florida was about $47,152 dollars; the exemption was 53% of this amount. Under Save The Dream V, increasing the homestead exemption allows for lower property tax for non-homesteaded property because more money would trickle down from the new sales tax to non-homestead property.
3.) REAL ESTATE WITH RESPECT TO ASSESSMENTS ON RECENT PURCHASES: Recently purchased real estate shall not be reassessedhigher than the purchase price with respect to the first assessment for the new owner.
Buyers can afford the houses that they buy, because they know and can budget what the taxes will be.
4.) TAX-SHIFT SOME OF THE PROPERTY TAX TO A SALES TAX: Increase the state sales tax throughout the state by 3% for purchases not exempt under state law.
Shift the property tax to a kinder and gentler tax that does not cease property and isn't on the essentials of life.
Unlike some plans, this one isn't dependent on the good will of local governments because it doesn't increase revenue to local governments. I can't recall a time that a revenue increase lead to a meaningful tax cut, that is why "Save The Dream V" doesn’t give revenue to local governments.All of the revenue from the 3% sales tax increase collected stays in a state escrow account to pay directly to the actual individual account bill sent out by the tax collector for tax. With this plan homesteaded property owners would not pay any property tax, also non homestead properties would get a 30-50% tax cut.
The full plan is posted on '100 Innovative Ideas for Florida’s Future'
and is called "Property Tax Reform - ‘Save the Dream V’"
posted: Saturday, January 20, 2007 www.100ideas.org Please vote when you go there.
Last edited by Richard Charles Antolinez; 02-05-2007 at 11:50 PM..
Reason: Left out information.
Im newly registered here but have been lurking for quite some time. Taxes...now that is something that I just have to address!
The above plan sounds well thought out but heres an even simplier plan, CUT OUT ALL THE FREEBEES!!!!
NO more entitlement programs, NO more, "dont wanna work? Ok, heres a heavily subsidized apartment,free food,etc" deal!
I'm not sure about the idea of shifting some property tax burden over to sales tax. Yes, this would affect tourists, but it also affects low income residents greater than high income residents. I don't see this as desireable. Perhaps a graduated milleage rate would be better...similar to how we have a graduated federal income tax rate? Taxing items and services used primarily by tourists is also more desireable than a straight sales tax increase, IMO.
The average house cost over $210,000 and the tax at 24 mills and taxes run about $5,000, low income people would have to spend $166,000 a year to pay more in sales tax because they pay 3% extra than they do now.
Are these numbers you have calculated, yourself? Or is this regurgitated from a website? I would like to see how these numbers are derived. I won't take anything like this at face value.
Does the sales tax increase factor in the possibility that overall consumption may be reduced, due to increased taxes?
The savings from raising the homestead exemption is pretty straightforward. However, I would still like to see the calculations before I just accept the $3.348 billion figure.
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3% mitigation tax on the sale of non homesteaded real estate = ? billions
This is going to reduce revenue. Yet, you don't calculate this. You just put in a question mark. That's not good.
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Sale tax accountability could save billions and increase the revenue for a tax-shift of the property tax to sales tax. ?billions
Could save billions? You don't even have a figure, here.
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Total tax offset of currently know numbers over 14.5 billion dollars.
No, that math is wrong. You have an increase of $11.16 billion and a decrease of $3.348 billion. You don't add those together. You subtract them. Based on this obvious flaw, it puts the validity of all of your figures into serious doubt.
I'm all for tax fairness, but it has to be a reasonable solution. This solution doesn't seem reasonable, to me.
I get most of my raw data from the state of Florida department of revenue. And the group Tax Watch. If you reduce property tax by 3.348 billion by raising the homestead and shift 11.16 billion to sales tax by paying down property tax bills, you offset-"something counterbalancing something else: something that counterbalances or compensates, or an allowance made in order to counterbalance something (often used before a noun) " 14.5 billion in property tax.
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