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."

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Miami Herald

St. Pete Times

Orlando Sentinel