THE NEWS SERVICE OF FLORIDA: Property tax measures advance, face long road
Mar 18, 2009
By MICHAEL PELTIER
THE NEWS SERVICE OF FLORIDA
TALLAHASSEE, March 17, 2009 — Additional homestead tax breaks for first-time home buyers, limits on commercial property assessments and an overall cap passed a key Senate committee Tuesday but still face long roads ahead.
The Senate Community Affairs Committee approved a trio of proposed constitutional amendments over the objections of Democrats who said they increased the disparity between homestead and non-homesteaded properties and further penalize new buyers.
Despite such objections, the proposals passed the panel with a lone dissenting vote on the most controversial measure, which would cap all local property tax collections and put lawmakers in charge. But passage of the measures is far from assured. All have four more committee stops before reaching the floor.
One amendment, sponsored by Sen. Evelyn Lynn, R-Ormond Beach, would cap commercial property assessment increases to 5 percent a year, halving the 10-percent cap now placed on business, rental and second homes. The measure (SB 532) would also provide first-time homebuyers with additional exemptions equal to one half the home’s value. The exemption would be phased out over five years.
Another (SJR 1164), by Sen. Mike Fasano, R-New Port Richey, would prohibit tax assessments from automatically rising if the market value of a homesteaded property decreases over the year. Under current Save our Homes rules, property assessments must rise by inflation (up to 3 percent) regardless of the movement of local property values.
Finally, SJR 738, sponsored by Sen. Mike Bennett, R-Bradenton, would cap local tax assessments at 1.35 percent unless voters approve. State lawmakers would divvy up revenues in excess of the cap. The most contentious of the three bills, the measure passed on an 8-1 vote.
“I’m not sure that this is the right cure but we want to keep the discussion going,” said Bennett, who acknowledged last week that the bill would likely not pass in its present form.
Critics say the proposal would reduce local collections statewide by $6 billion at a time when local governments are already scrambling for schools, law enforcement and other programs.
“How can we do this to local government during these times?” asked Sen. Ted Deutch, D-Delray Beach, who cast the only vote against the measure. “