Florida: Property Tax Relief Is About More Than Money...

Those of us who live in the beautiful Sunshine State of Florida have a lot of perks living here.  We have major cities around every corner, more theme parks than one week can handle, and access to the best beaches in the country. 

However, in the last few years the cons have begun to outweigh the perks.  Forcing many families to leave their homes.  Summers riddin with hurricanes have raised home owners insurance rates through the roof.  Many companies will not even right a policy in the state anymore.  Property appreciation has raised the taxes to a monthly rate that nearly DOUBLES most mortgages. 

The Save Our Homes Act of 1992 (Amendment 10) was designed to help families be able to afford decent housing and maintain their lifestyle their without the fear of property taxes overwhelming them.  Well, for the most part it has.  With only a modest 3% Increase allowed annually it has served that purpose.  But with the recent boom in property prices these same owners now feel "trapped" in their properties.  Knowing that if they buy a new home, taxes will sky rocket.

In south Lee County FL a home bought around 1997, with 4beds/2.5 baths and very moderate upgrades could be purchased for under $150,000.  Today to buy that same home you would pay nearly $600,000!!

Floridians have been talking...and thankfully the house leaders have been listening.  In a February 21, 2007 press release from the Florida House of Representatives House Speaker Marco Rubio, Chairman Ray Sansom, and other House leaders this morning unveiled a comprehensive property tax relief proposal designed to cut Floridians' property tax bills by nearly 20 percent this year.

Meaningful Property Tax Relief This Year

• Effective July 1 of this year, property taxes for Floridians will be reduced by nearly 20%. 
• With an adjustment forward for a reasonable increase in the size and cost of government, local government millage will be reduced to a rate generating the same tax revenue as was generated in the previous year. 
• The rate of growth for government will be determined by population growth plus inflation set off a base year of 2000-2001. 
• Local governments may choose to raise revenues above the capped rate through a unanimous vote of their governing body. These limits do not apply to taxes levied for school districts, for bond repayments, or for a two-year period when authorized by a vote of electors. 
• School district revenues would not be rolled back.

Property Tax Reform Constitutional Amendment 

• In a 2007 special election, voters would have the option of eliminating all property taxes on homestead property. 
• In addition to eliminating property taxes on homestead property, starting in Fiscal Year 2008- 09, state revenue growth would be limited to a reasonable amount that would be allowed under a prescribed formula that accounts for population growth and inflation since 2001- 2002. 
• For the first time, Medicaid revenues would be placed within the revenue growth limitation. Currently these revenues are excluded from the state's revenue limitation. 
• The state revenue limit may be exceeded in any year by a 2/3 vote of each legislative chamber. 
• The constitutional amendment would also limit the continued rapid expansion of local government by containing millage to a rate that produces the same tax revenue as was generated in the previous year plus population growth and inflation, excluding new construction and annexation. The revenue cap may be exceeded through a unanimous vote of the governing body. 
• School districts would not see their budgets reduced under the House's plan. The future growth of school district budgets from property tax revenues would be limited by the amendment, but state government could choose to put more state revenue into schools.

Abolishing Property Taxes on Homestead Property 

• If the elimination of taxes on homestead property is passed by the voters, the state sales tax will be increased by 2.5 cents on all transactions subject to sales tax to offset revenue losses to local governments, schools and other entities that used property tax revenues. 
• This additional sales tax will be used to replace revenues lost due to the Constitutional Amendment. 
• This replacement revenue will only be implemented if voters approve the Constitutional Amendment that exempts homestead property from property tax

For Floridians' property tax relief is about more than money...it is about saving our families' dreams.

Liz Landry * The Landry Team * Keller Williams Realty First Coast * 904-803-2459 *