Your Opinion on Property Taxes

We welcome your opinion on property taxes.

The plan includes the following benefits for Florida taxpayers:

-Portability, allowing homeowners to transfer their Save Our Homes benefit (up to $500,000) to a new homestead.

-Doubles the homestead exemption, allowing an additional $25,000 for the value of homestead property above $50,000. This exemption will not affect school taxes.

-Grants a new $25,000 exemption for tangible personal property.
Requires an annual appropriation to fiscally constrained counties to make up for revenue reductions.

-Limits the annual growth of assessed value for non-homesteaded residential and business properties to 10%. For most non-homesteaded housing properties, this accumulated assessment limitation will expire at change of ownership.

Special Session on Budget Cuts to Begin October 3

Today, legislative leaders in the Florida House and Senate have agreed to meet beginning October 3 to work toward cutting over $1 billion from Florida's state budget. In holding a special legislative session from October 3 through October 12, legislators will focus on reducing state spending from the current budget of over $71 billion. The agreement reached today is one step in the right direction.

"We owe it to the citizens of our great state to hold the line on state spending. Families and businesses are going through a tough time, and government must tighten its belt too," said Senator Haridopolos. "We welcome your comments on how we should cut our budget and help grow the economy."

To reach Mike directly with your suggestions, please e-mail him at mike@senatormike.com

Read More:

Herald-Tribune: Legislature to meet Oct. 3-12 to cut budget

Palm Beach Post: Legislature will cut budget in October

Miami Herald: Legislature calls session for October

Special Session Announced on Budget Cuts

Tuesday, state lawmakers announced that they will meet in a special session this September to address cuts to Florida's $71.5 billion budget. The session will begin September 18 and could continue through the beginning of October.

Read More:

Tampa Tribune: State Budget Under the Ax

Palm Beach Post: Extra session called to cut state budget

Daytona Beach News-Journal: Tax revenues falling short, special session called to cut budget

Lakeland Ledger: Legislature Schedules Special Session

Property Tax Cuts Pass Full House & Senate

This afternoon, the Florida Legislature passed the first of two pieces of legislation designed to provide relief to those suffering under burdensome property taxes.

The bill, which passed the House by a vote of 117-1 and the Senate 37-0, requires local governments to reduce property tax revenues to 2006-2007 levels, and mandates an additional tax cut of 3, 5, 7, or 9 percent, depending on each local government's taxing performance over the last five years. Governments that have benefited from the largest tax increases will be required to enact the largest cuts. After the initial cut, future revenue increases will be capped at the rate of growth of Floridians' personal income. This proposal ensures that government's budget will not outgrow taxpayers' means.

The second bill passed the Senate and awaits House approval. This bill would replace Save Our Homes with a super-homestead exemption. This proposal would exempt 75% of the first $200,000 and 15% of the next $300,000 of any homestead's value. A $250,000 home, for example, would enjoy an exemption of $157,500, rather than $25,000 as under current law. The proposal also allows each taxpayer to choose whether and when to opt into the new system. Taxpayers whose taxes are lower under the existing Save Our Homes system will continue to enjoy Save Our Homes, while taxpayers whose taxes are lower under the super-homestead exemption can elect that option.

Florida Today: State lawmakers vote to cut property taxes

Miami Herald: Senate passes property tax proposal

Special Session Underway

We invite you to share your opinions as we unveil the plan to reform Florida’s property tax system. The primary way this plan will help homeowners is “Save our Homes” will be replaced by a new “super exemption.” The “super exemption” will work as follows:

-Homesteaded properties will receive an exemption of 75% of the first $200,000 in value
-In addition, homesteaded properties will receive a 15% exemption for the next $300,000 in value

I truly believe the most important message is that government can and will go on a diet. This is the first time in Florida history that there will be a cap on property tax revenues, assuring property taxes will not grow faster than family income. I look forward to hearing your opinions as we work through this complex issue.

Property Tax Plan Released = $31.6 Billion Tax Cut

On Friday, June 8, legislative leaders unveiled their plan to slash property taxes in Florida by $31.6 billion over the next 5 years, marking the largest tax cut in state history.

The tax cut includes several components:

First, local governments must "roll back" property tax revenues to 2006-2007 levels, and then reduce those revenues by an additional 3, 5, 7, or 9 percent, depending on their own taxing performance over the last five years. Local governments that have acted responsibly will not be penalized, while those that have rapidly increased taxes will face the deepest reductions.

Second, future increases in property tax revenues will be capped at the rate of growth plus increases in personal income. Government's budget will not grow faster than yours.

Third, the proposal replaces the broken Save Our Homes system with a super-homestead exemption. For each homestead, 75% of the first $200,000 and 15% of the next $300,000 will be exempt. For example, a $250,000 home will enjoy a $157,500 exemption. Taxpayers who benefit more from Save Our Homes will retain those benefits, while the inequities it created will gradually be eliminated.

"We did exactly what we said earlier in the year," said Senator Haridopolos, Senate Chair of the Select Joint Committee on Property Tax Reform and Relief. "We’re going to roll back taxes immediately and then allow voters to make a decision on future cuts. Finally, there will be government on a diet. There will be caps."

The Select Joint Committee on Property Tax Reform and Relief will meet again Monday in Tallahassee, while the entire Florida Legislature will convene Tuesday, to begin its 10-day special session on property tax reform.

Read More:

Property tax plan to save you $31B

Senator: Tax breaks to raise homestead exemptions

Legislators Agreeing on Property Tax Rollbacks, Spending Caps

For those eagerly awaiting results of the ongoing property tax negotiations among state legislators, an indication of progress was recently provided. On Friday, Florida House and Senate leaders agreed on several key measures which would reduce property tax burdens being felt by individuals across the state. These measures include rolling back tax increases imposed by cities and counties and placing caps on the spending of property tax dollars collected in the future. The natural differences existing among cities and counties is also recognized in that those areas which have collected the most money from taxpayers would proportionately cut the most taxes.

Addressing the flexibility of these proposals, Senator Haridopolos stated, "We think it's fair because it's not punishing the counties that have not been the bad actors. I think this is a significant advance."

Read More:

News-Press

Miami Herald

St. Pete Times

Orlando Sentinel

2007 Legislative Session

Dear Friend,

Thank you for the continued honor to serve you in the Florida Senate! For me, as Majority Whip and Chairman of the Senate Finance and Tax Committee, this session proved to be a whirlwind. I am pleased to report that government can go on a diet. Our state budget was $2 billion dollars less than last year’s budget, yet we still funded priorities. When deciding how to spend your hard earned money, government must act more like a family or a business. If I have learned nothing else, I have learned that government does NOT have a revenue problem—it has a spending problem!

While reducing spending by $2 billion, we also continued to spend on priorities like education, roads, and domestic security. We increased education spending by $455 per student without compromising standards. We placed needed dollars in transportation spending—providing money to widen I-95 and fund US-1 road projects—so you can spend less time on the road and more time with your family. Finally, we increased law enforcement spending to ensure that criminals behind bars will not get out early due to court decisions compelled by overcrowded prisons.

More work remains to be done. In June we will provide across-the-board tax relief for strapped property owners. Our plan will not only roll back taxes to earlier levels, but it will also give voters the choice to allow homestead portability, reductions in tangible personal property taxes, and incentives for first-time homebuyers. Our plan is a culmination of a series of town hall meetings where we listened to ideas of taxpayers from across our state. These reforms, coupled with a cap on future increases in local government revenue, will finally give taxpayers predictability and real tax relief.

We also finally moved toward full accountability. We have long had government in the sunshine, but too often we have settled for spending in the shade. Our new plan requires all government spending—state and local—to be listed online for all taxpayers to review how their tax dollars are being spent. This transparency will help us create an effective process to ensure that tax dollars are spent responsibly and without waste.

As always, please feel free to contact me with questions, comments, or your advice. Our office number is (321) 752-3131, or e-mail me directly at mike@senatormike.com. I thank you again for the honor to serve in the Florida Senate.

Sincerely,

Mike

Assess Property Based on Current Use, not Imaginary Use, says Sen. Haridopolos

In response to Floridians' continued demands for property tax relief, the Florida Legislature began debating various proposals during the first week of Florida's 2007 legislative session. The first such proposal to come before the Senate would dramatically alter the way in which property is appraised: it would require property appraisers to assess property according to its current, existing use, not according to a hypothetical "highest and best use." It is expected to lower taxes on homestead and non-homestead property alike, benefiting homeowners, renters, and business owners.

Under the current system, the property appraiser may consider eight factors in assessing property. One is the "highest and best" use to which the property could potentially be converted. This allows the property appraiser to assess an apartment complex as though it were a timeshare condominium, on the theory that the property could readily be converted to the more valuable -- but imaginary -- use. The Senate proposal would require the property appraiser to base assessments on reality, not hypothesis.

"We've got to move away from taxing potential," Senator Mike Haridopolos said. "That's like you are going to put a higher income tax on a guy who's at Harvard Law School. That's not fair. He hasn't graduated."

Exact details of the proposed legislation will be released this week.

Read more

Property Tax Meetings Continue - Orlando and Ft. Pierce Next

Tonight Orlando will be the center of the property tax debate. From 6-9 PM tonight, February 22, Mike will hold a town hall meeting at Valencia Community College's West Campus in Room 105 of the HSB Building. If you are unable to make it tonight, there will be another meeting tomorrow, February 23, at Indian River Community College's Knight Center, which is located at the Main Campus in Ft. Pierce. This will also be from 6-9 PM.

The House recently unveiled its plan to provide relief for Florida's property owners. Read more about their plan here

As always, feel free to add your comments on this subject.

Hillsborough Town Hall Meeting a Success

Last week Mike held six town hall meetings throughout the state to discuss property taxes. An overwhelming number of homeowners attended to express their concerns with the current property tax structure. Read more about the Hillsborough event here

Property Tax Town Hall Meeting in Jacksonville

On Thursday Jacksonville will host the second in a series of nine town-hall style meetings to discuss the issue of property taxes. People are not always able to visit Tallahassee to let their opinions be known, so Senator Haridopolos is bringing the Legislature to the people. If you are unable to attend one of the meetings feel free to use this space to submit your comments. You can also visit The Senate Website to submit your comments.

Senator Mike to be on CBS' Flash Point

Look for Senator Mike on CBS' Flash Point. It will air this Sunday at 11 AM on CBS stations throughout Central Florida. Mike will discuss property taxes and the possible actions the legislature will take to solve one of the biggest issues facing Florida's property owners. As always, we invite you to add your comments to the discussion.

Governor Crist Unveils Property Tax Relief Proposal

Governor Crist announced his plans to provide tax relief to Florida's property owners. Read the plan below and submit your comments!


http://www.flgov.com/release/8567

First Property Tax Town Hall Meeting a Success

Last night was the first of eight town-hall style meetings across the state to address the issue of property taxes. The Panama City event saw a croud of almost 500 citizens who wanted to let their opinions be known and to share their thoughts on how to reduce property taxes.

Read the story here:

http://www.jacksonville.com/tu-online/stories/012607/met_7581851.shtml

Legislature Passes Insurance Reform Bill

On Monday, January 22, the Legislature passed a bi-partisan insurance reform bill, CS/HB 1A. Here is information on the bill:


Florida Hurricane Catastrophe Fund

• The bill raises the level of backup coverage insurers can purchase by creating the Temporary Increase in Coverage Limit options (TICL) for the 2007, 2008, and 2009 hurricane seasons. Through this program, insurers can buy additional reinsurance of up to $12 billion above the Florida Hurricane Catastrophe Fund industry limit of $16 billion (estimated for 2007), allowing them to lower rates.

• The bill creates Temporary Emergency Additional Coverage Options (TEACO) within the Florida Hurricane Catastrophe Fund (FHCF), which offers insurers additional FHCF coverage by selecting their share of industry retention level of $3 billion, $4 billion or $5 billion (compared to the $6 billion retention estimated for 2007) for 2007, 2008, and 2009.

• The bill provides an additional amount of FHCF coverage of up to $10 million dollars that insurers may purchase at a premium of 50 percent of the additional reimbursement coverage provided (i.e. $5 million premium for $10 million coverage). The ability to purchase the coverage option expires May 31, 2008.

• The bill repeals the 25 percent rapid cash buildup factor for FHCF premiums, which will translate into immediate rate savings for Florida property owners.

• The bill requires all residential property insurers make a rate filing with the Office of Insurance Regulation which shows how the expanded FHCF coverage results in savings or reduction in loss exposure to the insurer.

Citizens Property Insurance Corporation (“Citizens”)

• The legislation reverses the rate increase that took effect January 1, 2007. It requires Citizens to provide full rebates to homeowners who have paid this rate.

• The legislation deletes the requirement that Citizens charge rates sufficient to purchase reinsurance for each of its three accounts. This is important because Citizens Property Insurance is not required to purchase reinsurance, but had been charging as though it did purchase reinsurance, and was passing those fictitious costs along to Floridians.

• The bill deletes the requirement that Citizens’ rates be non-competitive and no lower than the top 20 insurers. However, rates charged by citizens must still not be excessive, inadequate, or unfairly discriminatory.

• The bill delays until 2008 the requirement that Citizens impose up to a 10 percent premium assessment on all nonhomestead policyholders.

• The legislation requires Citizens to exempt policies from the 10-day waiting period for a real estate closing.

• As of January 1, 2009, to qualify for Citizens, properties over 500 to 2,500 feet landward of the Coastal Construction Control Line must be built to “Code-Plus” building standards developed by the Florida Building Commission, ensuring that those homes will be better prepared for damaging storms.

• The bill deletes provisions making nonhomestead policyholders ineligible for Citizens coverage effective March 1, 2007.

• The bill provides that if a policyholder is offered coverage from an insurer at the insurer’s approved rate, then that policyholder is not eligible for a Citizens’ policy, unless the insurer’s premium is more than 25 percent greater than the premium for comparable coverage provided by Citizens.

• It also authorizes Citizens to provide commercial (business) coverage statewide.

• In addition, the bill authorizes Citizens to write multiperil policies (as well as wind-only policies) in the areas eligible for coverage in the High Risk Account. If approved by the Financial Services Commission and the Legislative Budget Commission.

Coverage Exclusions; Deductibles; Payment of Premium

• The legislation requires insurers to make available to policyholders the option to exclude windstorm coverage, if the policyholder personally writes a statement that he/she does not want such coverage and provides documentation of approval by any mortgage or lien holder. This will reduce the risk for insurers, enabling them to offer lower rates.

• It eliminates maximum allowable deductibles, but requires a written statement by the policyholder and approval by a mortgage or lien holder.

• The bill prohibits property insurers from denying coverage based solely on the age of the structure and requires consideration of the structure’s wind resistance.

• It also requires insurers to offer the option to exclude coverage for contents, if the policyholder personally writes a statement that he or she does not want such coverage.

• The bill requires insurers to allow personal lines residential and commercial policyholders to pay premiums on a quarterly or semiannual installment plan.

Premium Notice

• The bill requires insurers to specify on the renewal premium notice:
o The amount of an assessment by the Florida Hurricane Catastrophe Fund, Citizens Property Insurance Corporation, and the Florida Insurance Guaranty Association, and the full name of the assessing authority; and,
o The amount a premium has changed due to a change in rate or coverage.

Hurricane Mitigation

• The bill requires the Financial Services Commission to develop by rule a uniform mitigation verification inspection form that must be used by all insurers to factor discounts for wind insurance.

• The bill makes the following changes to grant programs within the Florida Comprehensive Hurricane Damage Mitigation Program:
o Low income homeowners are exempt from the requirement to have a dwelling with an “insured value” of $500,000 or less (in other words, the home does not have to be insured).
o Grants may be used on previously inspected existing structures or a site built single family dwelling that is under construction to replace a homestead damaged or destroyed by a hurricane.
o Low-income homeowners may use grant funding to repair existing structures if the repairs are mitigation improvements.

• The bill requires the Financial Services Commission to develop a uniform home grading scale to grade a home’s ability to withstand the wind-load from a hurricane.

• The bill requires every licensed general lines insurance agent and consumer representative to complete one hour of continuing education every two years regarding premium discounts available on property insurance policies based on hurricane mitigation options and how to obtain discounts.

• It requires insurers to provide notice of combinations of discounts, credits, rate differentials, or reductions in deductibles, for windstorm mitigation.

• It requires insurers to offer deductible reductions for mitigation measures.

Florida Building Code

• It eliminates the “Panhandle exemption,” under which homes in the Florida Panhandle were held to fewer safeguards against storms.

• It requires the Florida Building Commission to develop voluntary “Code-Plus” guidelines for homeowners who wish to build their homes at a higher standard.

Insurance Consumer Advocate

• It requires the Insurance Consumer Advocate to provide an annual report card on insurance companies using a letter grade scale established by the Financial Services Commission.

Self-Insurance Funds; Bonding Authority

• The legislation allows hospitals, local governments and Community Associations to form risk pools and self-insurance funds.

Catastrophic Ground Cover Collapse Coverage; Sinkholes

• The bill requires property insurers to provide coverage for sinkholes.

• Under this legislation insurers must continue to make sinkhole coverage available for an appropriate additional premium. If Insurers offer policies that exclude coverage for sinkhole losses, the company must provide written notice to the policyholder in 14-point type.

“Cherry Picking”

• Under this bill, if a company provides private passenger automobile insurance in Florida and offers homeowners policies in other states, they will be required to offer homeowner’s coverage in Florida.

Legislature to Convene in Special Session on Property Insurance

Today, Tuesday January 16, 2007, the Florida Legislature will convene in a Special Session to address the property insurance crisis currently facing Florida's homeowners. As always, Mike welcomes your input on this issue.

More On Property Taxes

We welcome your suggestions on this issue. Read AP Story Below

Senate leader: Property tax could go on ballot this year

By BILL KACZOR
Associated Press Writer
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TALLAHASSEE, Fla. (AP) -- Lawmakers could put a property tax relief measure before voters as early as this fall, Senate Finance and Taxation Committee Chairman Mike Haridopolos said Thursday.

Legislators have been flooded with complaints about inequities and rising property taxes, spurred largely by sharp increases in real estate values.

"There is a real hunger for some commonsense help," Haridopolos, R-Indialantic, said after his committee received an update on reform efforts. "I think this is a big enough issue to hold a separate election."

If the Legislature did that, it would beat the Taxation and Budget Reform Commission to the punch.

The Florida Constitution requires such a commission to meet once every 20 years, starting in 2007, to review the state's budgetary, revenue and spending procedures. The commission, yet to be appointed, also can put amendments dealing with those issues on the ballot the following election year, in this case 2008.

It would take a three-fourths vote in the House and Senate to call a special election to amend the constitution this year, Haridopolos said. Amendments offered at regular elections take a three-fifths vote.

Complaints about inequities have centered on the Save Our Homes Amendment that voters adopted in 1992. It limits property tax increases on homes occupied by their owners to 3 percent annually, but homeowners who move lose their accumulated benefits. Many, as a result, have felt locked in to their existing homes.

A solution known as portability would let them take some or all of their Save Our Homes benefits with them when their move.

Local government officials have resisted that idea for fear of losing revenue, but a Department of Revenue study presented to the committee predicts tax rolls would be reduced only 0.7 percent in 2008 and 2.4 percent in 2012 by a statewide portability provision.

The report cheered portability advocates.

"In the four years I've handled this issue the clarion call from local governments has been if you somehow allow portability we'd literally bankrupt local government," Haridopolos said.

Sen. Jeff Atwater, R-North Palm Beach, argued the effect would be even less than the Revenue Department estimated because home sales would increase once homeowners no longer felt locked in.

The Legislature's Office of Economic and Demographic Research has commissioned a property tax study that will include that factor and others.

Haridopolos said the Legislature could focus just on portability although he advocates a comprehensive approach including tax relief, not just reform.

"We might have to look at actually putting an overall revenue cap on local and state government," Haridopolos said. "Everything is on the table."

The Legislature will gather public comment on the property tax issue during a series of town hall meetings that begin Jan. 25 in Panama City.

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http://hosted.ap.org/dynamic/stories/F/FL_XGR_PROPERTY_TAX_FLOL-?SITE=FLTAM&SECTION=US

Mike Announces Property Tax Town Hall Meetings

In an effort to bring comprehensive tax relief to all Floridians, Mike announced that the Senate and House will hold a series of town hall meetings across the state to hear directly from the voters.

“This issue affects all Floridians. Homeowners, renters, first-time buyers and business owners across our state are all touched by this issue, and it is time that we hear from them directly,” said Senator Haridopolos. “Not every concerned citizen can come to the Legislature – so we are bringing the Legislature to them. Our job is to do the people’s work, and we are looking forward to traveling the state and working with everyday Floridians on this issue.”

According to Governor Bush’s Property Tax Reform Committee, government revenues have grown by 80%, city government revenues by 98% and special taxing districts by 110%. In the same time, the data shows that population and inflation grew by 32% and family income (CPI + population) by just 39%. Read the AP story below.


http://www.sun-sentinel.com/news/local/palmbeach/sfl-pnfproperty09jan09,0,4431551.story?coll=sfla-news-palm