Florida Property Tax Reform

By now you’ve no doubt learned that the Legislature suspended negotiations on Save Our Homes portability, rollbacks and other property tax reform proposals until next month when lawmakers return to Tallahassee for a 10-day special session. Several words come to mind.
Disappointing? Yes. Derailed? No.

“We’re going home to continue to work on it,” said House Speaker Marco Rubio (R-Miami). “We would not call dates (for a special session)...unless we were confident that we would come up with something that would not just pass but work. But drafting something to go on the ballot (can't be rushed).''

House and Senate leaders called the special session Wednesday afternoon when it became clear that a deal couldn’t be worked out in the remaining 48 hours of the regular session. "The issue is too important to our state and to our taxpayers for us to give them a product they would not be proud of," said Senate President Ken Pruitt (R-Port St. Lucie) . "We have laid a great foundation."

Pruitt noted that both sides have already agreed on two FAR-supported tax relief measures—$25,000 exemption on personal intangible property for small businesses and some form of Save Our Homes portability. Details of the portability discussions were not released.

30 days to talk the talk
A one-month waiting period leading to a special session of the Florida Legislature gives Realtors® an opportunity to meet their lawmakers locally and push for substantial property tax relief. It also gives lawmakers time to consider the focus exclusively on the issue.
“It is my hope that a special legislative session devoted entirely to this issue will be able to deliver even more comprehensive tax reform than what could be negotiated in the waning hours of the regular session,” says FAR President Nancy Riley. “The Legislature will be able to roll back rates immediately and, if we remain strong, we will get our special election this year for portability and other constitutional issues that must be ratified by the voters.”

Special session at a glance: When: June 12-22
Original House plan:
Rollback taxes to 2001 levels; replace property taxes with a 2.5 percent state sales tax increase (constitutional amendment. Projected savings: $50 billion over five years.

Original Senate plan:
Rollback taxes to 2006 levels; allow for Save Our Homes portability; $25,000 exemption on intangible property; double the homestead exemption for first-time buyers. Projected saving: $14 billion.

What sources say has been agreed to so far:
Cut property taxes by about $20-25 billion over five years; no sales tax increase; some form of Save Our Homes portability.

© 2007 FLORIDA ASSOCIATION OF REALTORS ®