Florida House pushes for stronger property tax cuts

TALLAHASSEE, Fla. – Oct. 22, 2007 – On Saturday, Florida’s House of Representatives released its updated property tax reform plan, which includes a number of initiatives favored by Florida Realtors.

House leaders now hope to build a bipartisan consensus to show the Senate that they’re serious about drastically cutting state property taxes. If Democrats and Republicans pass the measure with something close to a majority, they reason, the Senate would have to consider the plan.

“If we come out with a product in the House that’s 118-2 or 115-5, it sends a message that, look, this is pretty good reform that we’re united behind,” says Rep. Jack Seiler, D-Wilton Manors. “We actually deliver the same in tax cuts [as the Senate’s plan], but we deliver it more efficiently.”

In addition to portability – which the governor, Senate and House already advocate – the updated House proposal includes a 5 percent assessment cap on commercial and non-homestead property. The cap applies to properties, so a change of ownership would not change those taxes under a new owner, giving non-homestead property owners a degree of stability and predictability.

The House also advocates a new homestead exemption. Instead of doubling the current $25,000 exemption, the plan would guarantee a minimum Save Our Homes exemption of 40 percent of a county’s median home price. House leaders believe this will provide relief to not only new buyers but also those who have purchased in recent years.

Issues being proposed in the House plan include:

•Homestead property owners would pay tax based on their existing Save Our Homes value or current value minus 40 percent of their county’s current median home price, whichever is less.
•5 percent cap on commercial and non-homestead property taxes
•Under portability, homeowners may transfer Save Our Homes benefits to a new homestead anywhere in Florida within two years of leaving their former homestead.
•Tangible personal property exemption of $25,000
•Limits the authority of local governments to increase property taxes
•Provides limitations on the assessed value of properties used for affordable housing
•5 percent assessment growth limitation for all non-homestead properties
•More flexibility for the Legislature to limit assessments for working waterfront properties
•Election of all county property appraisers

FAR has a downloadable chart comparing the recent House proposal to Senate positions here.

© 2007 FLORIDA ASSOCIATION OF REALTORS®