Official Blog

Haridopolos leads fight against "bait and switch"

2008-07-01T09:47:00.002-05:00

Florida Times-Union: Property Taxes: A really bad idea

Mike Haridopolos, R-Indialantic, described the idea as a “bait and switch” and a “wolf in sheep’s clothing,” in a Florida Capital News story online.

That’s an understatement. It’s a bad idea on many levels....

Cheers for the Haridopolos truth tour.

Ft. Myers News Press: Vote down shell game amendment

Why are so many people so alarmed by Amendment 5 in a year when a tax-cut amendment won overwhelming voter approval in January?

The answer is that Amendment 5 is a shell game that takes a reckless gamble with the future of education funding in Florida.

An impressive alliance has formed to oppose a tax-cutting amendment on the November ballot. We wish them well.

The Protect Florida’s Future coalition was announced this week by Sen. Mike Haridopolos, R-Indialantic, chair of the Senate Finance and Tax Committee and Senate president-designate in 2010. It has representatives of small business, education, health care, farm interests and others.

Florida Today: Haridopolos leads charge against 'bait and switch' tax amendment

Read full text.

Senate passes frugal budget with pay cuts for governor, lawmakers

2008-04-10T07:15:00.000-05:00

TALLAHASSEE, Fla. — A frugal budget that includes pay cuts for Gov. Charlie Crist and lawmakers as well as spending reductions in health care, education, prisons, the courts and nearly every other state service passed Wednesday in the Florida Senate.

The House, meanwhile, debated its version but will not vote until Thursday.

The Senate's $65.9 billion budget for the next fiscal year is about $4 billion short of what Florida is spending now because tax revenues have fallen due to slumping state and national economies. The House measure is even more austere, about $800 million below the Senate.

The Senate added the 10 percent pay cut for Crist, Lt. Gov. Jeff Kottkamp, the three Cabinet members and legislators without debate or discussion. It would raise $586,426 to restore cuts in early learning programs including school readiness, pre-kindergarten, child care and families with disabilities and special health care needs.

"If we're asking everyone else to have to cut their budget, we in the Legislature should do exactly the same," said Sen. Mike Fasano, R-New Port Richey, who offered the proposal.

Crist would be the biggest loser under the Senate cut, taking a $13,294 salary decrease, and lawmakers from both chambers would take a roughly $3,000 reduction, a bit more for their leaders. The House included in its budget a smaller pay cut, shrinking legislators' salaries by about $760 a year, but leaving the governor and Cabinet alone.

The two chambers, though, are in agreement on a 6 percent tuition increase for community college and university students and neither has a tax increase, although the Senate would raise court filing fees.

"We've done more with less," said Senate Fiscal Policy and Calendar Committee Chairwoman Lisa Carlton, R-Osprey. "We have lived without our means."

Democrats, most of whom voted against the budget, offered two amendments that together would have raised about $400 million by closing what they said are loopholes that let big businesses shift Florida tax liabilities to subsidiaries in low-tax or no-tax states. Both failed.

"We could have raised money without affecting the average taxpayer," said Senate Democratic Leader Steve Geller of Cooper City.

The Senate vote was 26-12. All Republicans voted for the budget bill (SB 2900) and all except one Democrat - Sen. Mandy Dawson of Fort Lauderdale - opposed it.

The Senate also rejected efforts to restore cuts to prisons, the court system and a variety of education, senior citizen and children's health care programs by shifting money from a huge rail project in central Florida. It would reroute freight trains for a commuter rail system in Orlando.

After the House votes on Thursday, committees from both chambers will have to resolve differences in each section of the budget.

A major one is the House's failure to provide any money in the new budget year, which begins July 1, for Everglades restoration and the Florida Forever land-buying program, which get $100 million and $300 million in the Senate bill.

A big difference in health care is whether to pay for drugs for some people with catastrophic illnesses and transplant recipients. The House would, but the Senate wouldn't. The House, though, would cut spending for hospitalization for the same people.

Other differences include the amount of money the state requires schools to collect from tax dollars. The House would keep the amount the same. The Senate would require school boards to collect about $500 million more. The additional dollars would come from new development and property value increases. They also include a shift of some local tax dollars now earmarked for school building to school operating expenses such as salaries.

Despite those differences, the two chambers are fairly close on spending for primary and secondary schools, both cutting them under 2 percent. The Senate plans to reduce per-student spending by $116 while the House cut is $86. It would be the first per-student cut since 2001-02.

One of the most protracted debates in the House on Wednesday came over a plan in its budget (HB 5001) to close the A.G. Holley Hospital in Lantana. It's the last remaining hospital in the nation dedicated to treating people with difficult tuberculosis cases.

Rep. Yolly Roberson, D-Miami, who is a nurse, called closing the hospital "a public health disaster waiting to happen."

But Republicans said there are 2,400 hospital rooms in facilities around the state that will be able to care for the hospital's patients. They said the Palm Beach County hospital is a remnant of a bygone time when TB was a much bigger problem. It treated fewer than 100 patients last year.

---

Associated Press Writer David Royse contributed to this report.

Please post your comments on the budget here.

TCPalm Editorial: Tax reform, yes; tax increase, no

2008-03-07T16:59:00.002-05:00

Thursday, March 6, 2008

Imposing a one-cent hike in Florida’s sales tax would make tough economic times even worse

Call it penny-ante tax relief.

The latest plan at the state Taxation and Budget Reform Commission calls for a one-cent increase in Florida’s sales tax. In exchange, the panel pledges to close selected loopholes in the current tax code and deliver new breaks to property owners.

Can you say “bait and switch”?

This newspaper has long supported the concept of closing some statutory loopholes that, inexplicably, give tax-free status to hundreds of items ranging from pricey stadium skyboxes to ostrich feed. By capturing more revenues, the state should be able to lower the overall sales-tax rate, not raise it. That’s the essence of true tax reform.

But the tax reform commission blurs its priorities by piling on property-tax breaks for selected homeowners in an attempt to offset what amounts to a $3.5 billion sales-tax hike.

One provision would lower the newly voter-approved 10 percent annual assessment cap on non-homesteaded properties to 5 percent. That reduction surely sweetens the pot for snowbirds, but it’s no deal for 18 million Floridians.

This kind of tradeoff doesn’t impress state Sen. Mike Haridopolos, who chairs the Senate Tax and Finance Committee and was instrumental in producing the Amendment 1 reforms that passed in January.

“It’s too easy to start backdooring tax increases, with property taxes creeping up again,” the Melbourne Republican told Scripps Treasure Coast Newspapers’ editorial board last week.

Indeed, the temptation to ratchet up taxes will be almost immediate. To sell the sales tax-property tax combo, Orlando economist Hank Fishkind calculated that the “average taxpayer” would come out $53 ahead under the proposal.

Really? Fifty-three whole dollars? For that kind of benefit, why go through these gyrations at all?

If Fishkind’s computations are correct, the sales-tax hike fails to generate appreciably more revenue, but a 17 percent increase in the base rate would hit low- and middle-income taxpayers disproportionately hard. In other words, the worst of both worlds.

Instead of pursuing a shell game that collapses at the bottom line, commissioners would do better to focus on another program already under review: the Taxpayer Bill of Rights. The so-called TABOR would cap how much cities, counties, schools and special taxing districts can spend by tying revenues to inflation and population increases. Only voters could waive the spending or revenue caps, and any new tax or fee also would have to get public approval.

Floridians deserve one clear, well-considered and equitable tax package from the reform commission, which has the authority to put recommendations directly onto the November ballot. As such, the panel must resist the temptation to haul out a smorgasbord of competing, even conflicting, schemes. A tax increase definitely should not be on the menu.

If the protections of a Taxpayer Bill of Rights were in place, Florida households would have enjoyed an average property-tax savings of $569 in 2006. That’s at least 10 times better than a market-killing hike in the sales tax.

If you would like to share your thoughts on this subject please comment below.
Reprinted from the TCPalm

Amendment would ensure lawmakers can set university tuition

2008-03-07T16:58:00.002-05:00

Thursday, March 6, 2008

By BILL KACZOR
Associated Press Writer

TALLAHASSEE, Fla. (AP) -- A constitutional proposal that would ensure the Legislature, not an appointed board, can set tuition sailed through its first Senate committee Wednesday after lawmakers cast aside arguments it would politicize Florida's university system.

Besides making sure the Board of Governors can't set tuition, the proposed amendment also would again make Florida's education commissioner an elected position, abolish Florida's appointed State Board of Education and return its authority over primary and secondary schools to the governor and Cabinet. Until 2003 the governor and Cabinet, including an elected education commissioner, oversaw the state's schools.

The measure would undo constitutional provisions supported by two former governors, Democrat Bob Graham and Republican Jeb Bush.

Graham led a citizen initiative in 2002 that created the Board of Governors to oversees the 11 state universities. Graham and the board are suing the Legislature, claiming the panel, not lawmakers, have tuition-setting authority. The proposed amendment, though, would settle the issue regardless of how the courts rule.

"This new governance structure would clearly say that the decision on tuition is in the hands of the appropriators of the state's money," said Senate President Tempore Lisa Carlton, R-Osprey, who is sponsoring the measure (SJR 2308), which was before the Education Prekindergarten-12th Grade Committee.

Carlton said legislators can better balance the public's desire for low tuition - Florida has the nation's lowest - against the financial needs of the universities. Facing budget cutbacks, the board approved an 8 percent tuition increase in January without legislative approval.

University System Chancellor Mark Rosenberg argued against the proposal, which also would reduce the board from 17 to 8 members and cut their terms from seven to four years. He said it would hold universities "captive to political interests of the moment."

The board's size and terms are designed as a buffer against politics because a governor, who can serve only eight years, would be unable to appoint the entire panel until nearly out of office.

The committee also rejected arguments from Patricia Levesque, executive director of two foundations Bush has formed to advocate his education policies. She said having an elected commissioner would politicize education. Abolishing the board and giving its duties back to the governor and Cabinet will dilute the governor's power because he would no longer be the state's top education official, she said.

The measure, which passed unanimously, will be heard by the Higher Education Committee before it can go to the Senate floor. It's a top priority of Senate President Ken Pruitt, R-Port St. Lucie.

A similar proposal is to be heard Friday by the House Schools and Learning Council.

Graham said in an interview he was surprised by the proposal because "it seems to be a concession" the board has tuition-setting authority under the 2002 amendment.

The panel is similar to the Board of Regents the Legislature abolished in 2001 after it opposed two new medical schools favored by influential lawmakers. As a result, Graham said, "We became the most dysfunction university system in the country."

If you would like to share your thoughts on this subject please comment below.
Reprinted from the Associated Press

Senate Votes to cut $500 million from current budget

2008-03-07T16:55:00.002-05:00

Thursday, March 6, 2008

By DAVID ROYSE
Associated Press Writer

TALLAHASSEE, Fla. (AP) -- State spending this year would be about a half billion dollars less than planned under a bill the Senate passed Thursday.

With Florida's economy in a tailspin and residents not spending money, incoming taxes are expected to be about 13 percent lower this year than what legislators initially expected to have when they wrote the budget last year.

Senators passed the $503.3 million reduction in the current year's approximately $70 billion budget to bring state spending in line with lower-than-expected tax collections.

The House passed its budget-cutting proposal a day earlier, although the two plans differ slightly. Those differences are expected to be worked out in talks that began Thursday.

Senators did change their cut plan slightly, shifting $2.5 million into the criminal justice budget that could mean prosecutors and public defenders won't have to take unwanted time off. The prospect of furloughs had been raised as lawmakers wrote the budget cut bill.

To avoid that cut, the Senate approved using money from various fines that are expected to be collected between now and the end of the year.

Sen. Victor Crist, who chairs the Senate committee that writes the criminal justice part of the budget, warned that when lawmakers start writing next year's budget, there will still be difficulties.

"This is a quick fix to help them get through this year's budget," said Crist, R-Tampa, who sponsored the amendment shifting the money.

The bill to make the cuts (HB 7009) passed 26-13, almost entirely along party lines, with Republicans in favor and Democrats against.

Democrats had urged that the state dig more deeply into its savings accounts to avoid deep program cuts and consider finding new sources of money - possibly including tax increases.

Republicans in control of the Legislature, however, oppose tax increases.

If you would like to share your thoughts on this subject please comment below.
Reprinted from the Associated Press

Your Opinion on Property Taxes

2007-11-27T16:58:00.000-05:00

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

2007-09-13T19:10:00.000-05:00

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

2007-07-25T00:02:00.000-05:00

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

2007-06-14T17:20:00.000-05:00

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

2007-06-12T12:58:00.000-05:00

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

2007-06-09T16:01:00.000-05:00

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

2007-06-04T00:02:00.000-05:00

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

2007-05-29T15:53:00.000-05:00

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

2007-03-12T16:47:00.001-05:00

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

2007-02-22T12:23:00.000-05:00

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

2007-02-19T18:10:00.000-05:00

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

2007-02-06T13:47:00.000-05:00

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

2007-02-01T16:27:00.000-05:00

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

2007-02-01T10:22:00.000-05:00

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

2007-01-26T10:28:00.000-05:00

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

2007-01-24T10:06:00.000-05:00

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

2007-01-16T09:52:00.000-05:00

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

2007-01-11T21:07:00.000-05:00

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.

© 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy.

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

Mike Announces Property Tax Town Hall Meetings

2007-01-10T16:50:00.000-05:00

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

Mike- Majority Whip

2006-12-20T13:48:00.000-05:00

Senator Mike Haridopolos is now a Majority Whip of the Florida Senate. This leadership position helps formulate legislative proposals and then helps to secure must pass legislation.

To read more click here http://www.floridatoday.com/apps/pbcs.dll/article?AID=/20061212/BREAKINGNEWS/61212017/1086

Spending Limit Proposal for Indian River

2006-12-15T08:17:00.000-05:00

Yesterday our Indian River legislative delegation floated an idea to limit county spending to population and CPI combined (family income). The proposal is an attempt to limit property tax increases on homeowners, renters, and business owners who desperately need relief. The bill must be supported by the state legislature and then voted on by local residents by a super-majority, 3/5 vote.

Below is the first version of the bill. We welcome your comments and know public input will help us shape the fairest bill possible for voters to decide.

A bill to be entitled
An Act relating to Indian River County; limiting
Annual increases in Indian River County’s operating
Budget; providing for exceptions to the limitation;
Requiring a referendum; providing an effective date.

Be it Enacted by the Legislature of the State of Florida:

Section 1. Limitation on increases in the county’s operating budget.—Except as provided herein, annual increases in Indian River County’s operating budget shall not exceed the percentage increase in the county’s population, as determined by the Bureau of Economic and Business Research’s latest “Florida Estimates of Population,” plus the percentage change in the Consumer Price Index as provided in s.193.155(1)(b). This limitation in annual increases in the county’s operating budget may be overcome by a finding of necessity due to emergency or critical need approved by a super-majority vote of the county commission.

Section 2. Referendum.—
(1) In conjunction with the general election held in November 2008, and in accordance with the general laws governing elections, the Indian River County Supervisor of Elections shall conduct a referendum of qualified electors of the county for the purpose of posing the following question:

Limitation on Annual Increases in Indian River County’s Operating Budget

Shall annual increases in Indian River County’s operating budget be limited to the percentage change in the county’s population plus the percentage change in the Consumer Price Index unless the county commission finds, by a supermajority vote, that exceeding the limitation is necessary due to emergency or critical need?

Yes
No

(2) “Qualified elector” means a person who is registered to vote in a general election held in Indian River County.

Section 3. This act shall take effect only upon its approval by a majority vote of those qualified electors of the county voting in a referendum held in accordance with section 2, except that this section and section 2 shall take effect upon becoming a law.

http://www.tcpalm.com/tcp/local_news/article/0,2545,TCP_16736_5214757,00.html

Mike on CNN

2006-12-15T08:01:00.000-05:00

Last night Senator Mike Haridopolos appeared on CNN. The host, Lou Dobbs, focused on the property tax issue as well as property insurance. Mike, the Chair of the Finance and Tax committee in the Florida Senate, is charged with creating a fairer property tax system.

"I was honored to be a part of this discussion on this important issue. Now a national audience knows some of the issues we face in Florida and our willingness to work together to solve such problems as high property taxes and property insurance. I welcome your ideas and suggestions,"

http://www.floridatoday.com/apps/pbcs.dll/article?AID=200661214034

http://www.tcpalm.com/tcp/local_news/article/0,2545,TCP_16736_5213772,00.html

http://www.floridatoday.com/apps/pbcs.dll/article?AID=200661214008

http://tampabay.bizjournals.com/tampabay/stories/2006/12/11/daily59.html?page=2

Mike Named Chairman of the Senate Finance and Tax Committee

2006-12-12T19:13:00.000-05:00

Today Senator Mike Haridopolos was named Chairman of the Senate Finance and Tax Committee. This committee is charged with setting tax law in our state. Property taxes will be a focal issue over the next two years as the legislature and our new Governor Charlie Crist pursue tax reform.

Senator Haridopolos is in favor of across the board property tax cuts for homeowners, renters and businesses. It is obvious to him that the state, let alone the local government, does NOT have a revenue problem, it has a spending problem.

Senator Haridopolos welcomes your suggestions on this issue.

http://www.floridatoday.com/apps/pbcs.dll/article?AID=/20061212/BREAKINGNEWS/61212017/1086

http://www.tcpalm.com/tcp/florida_news/article/0,2820,TCP_24432_5214738,00.html

http://nl.newsbank.com/nl-search/we/Archives?p_action=doc&p_theme=tcnp&p_topdoc=1&p_docnum=1&p_sort=YMD_date:D&p_product=TCNP&p_text_direct-0=document_id=(%201160298711FD06B8%20)

Welcome!

2006-12-04T08:10:00.000-05:00

Thank you for visiting my site www.senatormike.blogspot.com!