Proposal Would Reduce Florida Property Tax Revenue by $6 Billion According to Financial Impact Estimating Conference

After examining a pending citizens ballot initiative entitled “1.35% Property Tax Cap, Unless Voter Approved,” Florida’s Financial Impact Estimating Conference (“FIEC”) determined that this proposed amendment to the State’s Constitution would  “ . . .  reduce annual total school, county, municipal and special district property tax revenues by at least $6 billion, or 17%, based on 2007 (non-school) and 2008 (school) tax rates. Legislative implementation will likely produce greater reductions and will determine how each type and unit of local government is affected, but these impacts cannot be determined without legislative action. Local government expenditures will be reduced unless replacement revenues are enacted.”

Originating as a political action committee petition by Tampa-based Cut Property Taxes Now, Inc., the initiative currently has 105,789 valid signatures, but must meet the required number of signatures for inclusion (611,009) on the November, 2008 ballot by July 11, 2008.

“1.35% Property Tax Cap, Unless Voter Approved” provides that the property tax on any parcel of real property would never exceed 1.35 percent of the highest taxable value of the property.  This limit would apply to all property taxes except those approved by voters.  Distribution of revenue from parcels that have reached the 1.35 percent limit would be determined by general law.   The proposal does not amend Save Our Homes, Florida’s Homestead Exemption provisions, or any other exemption.

The FIEC estimated impact of the proposal was based on its analysis of the reduction in property tax revenues from those parcels of property that pay taxes exceeding 1.35 percent of the property’s highest taxable value.  The estimated annual statewide tax reduction from the impact of this proposed amendment to those parcels is at least $6 billion beginning in 2011.  This estimate assumes tax rates remain static from 2008 for school taxes, and from 2007 for all other taxes.

To view the complete FIEC financial impact statement, click here. 

To view the petition and full text of the proposed amendment, click here.

 

Decision Status

On June 18, 2008, Attorney General Bill McCollum submitted a request to the Florida Supreme Court to consider whether the ballot title and summary of the proposed amendment  “ . . . clearly and unambiguously informs the voter of the substance of the amendment .”  To view a copy of Attorney General McCollum’s letter to Chief Justice R. Fred Lewis, click here. 

The Florida Supreme Court issued an Advisory Order in response, which called for interested parties to file briefs by July 15, 2008. To view a copy of the Advisory Order, click here. 

To view the Florida Supreme Court docket for this case, click here. 

To view a copy of all documents submitted to the Florida Supreme Court regarding this matter, click here.

Should you have any questions or comments, please do not hesitate to contact Colodny Fass.