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
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2 comments:
Great news release. BUT still have that our commissioners can override a vote. That may end up holding up all the good effects of the ideas. In plain language remember the Federal senate did not listen re immigration and folks herfe arfe tired of the commissioners overspending and this is just one more way for them to cop out. Please rfectify this.
My friends were discussing that they had not heard the Senate/House side of the suggestions as they did not trust the local newspaper to give an unbiased look at the ideas.Hoping to hear concise info when bottom line is voted.
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