Florida Property Tax Reform Plan Decided, Almost
During a committee meeting earlier this week, the Florida Legislature took a big step forward in addressing a property tax reform plan. There is still a special legislative session set for June 12-22, but the reform plan is getting a little clearer. Here is what they agreed on.
Florida voters will have their say on property tax changes and restructuring proposals towards the end of January, 2008. Why then? To coincide with the presidential primary election. (The Legislature recently passed a new law that moved the primary from March to January to give Florida more influence on choosing presidential candidates.) Keep in mind that the state can not simply wave a wand and make major changes to property taxes, it takes a constitutional amendment to reform the system that is used.
House Speaker Marco Rubio (R-West Miami) and Senate President Ken Pruitt (R-Port St. Lucie) agreed last week on a basic outline for property tax reform. The plan would eliminate the current $25,000 homestead exemption for primary homes and likely most cases of the Save Our Homes Amendment. It would be replaced with a tiered, percentage-based exemption on primary homes.
For examples of this approach, see my earlier article on this here.
The Save Our Homes benefits would only be spared if they are better than the new plan, depending on each individual homeowner's scenario.
Exactly what percentages are to be used in each tier has not yet been agreed upon, but will be worked out while they hammer out the other details of the plan.
There also is an agreement for short term relief without an amendment, mostly addressing local government cuts based on recent increases and capping future taxes. Schools, they said, would be exempt from those tax cuts.
Florida voters will have their say on property tax changes and restructuring proposals towards the end of January, 2008. Why then? To coincide with the presidential primary election. (The Legislature recently passed a new law that moved the primary from March to January to give Florida more influence on choosing presidential candidates.) Keep in mind that the state can not simply wave a wand and make major changes to property taxes, it takes a constitutional amendment to reform the system that is used.
House Speaker Marco Rubio (R-West Miami) and Senate President Ken Pruitt (R-Port St. Lucie) agreed last week on a basic outline for property tax reform. The plan would eliminate the current $25,000 homestead exemption for primary homes and likely most cases of the Save Our Homes Amendment. It would be replaced with a tiered, percentage-based exemption on primary homes.
For examples of this approach, see my earlier article on this here.
The Save Our Homes benefits would only be spared if they are better than the new plan, depending on each individual homeowner's scenario.
Exactly what percentages are to be used in each tier has not yet been agreed upon, but will be worked out while they hammer out the other details of the plan.
There also is an agreement for short term relief without an amendment, mostly addressing local government cuts based on recent increases and capping future taxes. Schools, they said, would be exempt from those tax cuts.
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