FLORIDA HOUSE OF REPRESENTATIVES
APPROVES HISTORIC PROPERTY TAX RELIEF & REFORM
~House says Florida voters should be the ones to decide on the way they will be taxed on homes and
properties, and votes to immediately roll back taxes to 2000-2001 levels~
House Republicans yesterday approved a historic property tax
relief and reform package that will cut property tax bills by $6.3 billion dollars next year, statewide, and gives Floridians the opportunity
to vote for even more savings by eliminating property taxes on their homesteads.
“Too often in Tallahassee we hear from the lobbyists,
and the politicians, and the special interests who collect our taxes,” said Speaker Marco Rubio. “Today we heard loud and clear from the
people who pay the taxes. We listened to them, we took their ideas, and we have given them the power to eliminate property taxes in Florida. We are
committed to ensuring that the next property tax bill Floridians receive is one that they can afford, and today was the first step toward making that
happen.”
“No amount of spin can erase the fact that the plan we approved today is the single largest tax relief package in
Florida history, a potential net savings of $6.9 billion dollars for anyone who is currently being crushed under the high cost of property
taxes,” said Representative Dean Cannon. “If you pay property taxes, under the plan approved today, you will see relief.”
HJR 7089, sponsored by Speaker-Designate Ray Sansom, was approved by a vote of 78 representatives, including three Democrats, Representatives
Luis Garcia, Ed Bullard and Michael Scionti. The provisions, if approved by the voters of the state of Florida, will result in a net tax relief
savings of $6.9 billion dollars, and will save every homestead property owner an average of $2300 dollars. The provisions will also allow voters to
vote for the complete elimination of the property taxes they pay on their homesteads in exchange for two and half pennies of sales tax.
The
provision, if approved by the voters, accomplishes a property tax cut, a cap on local government
taxing and spending, and a swap to eliminate property taxes in exchange for sales tax:
- A Cut: Requires all local governments except schools to set property
tax rates to where they would have been if tax revenues had grown only in proportion to community growth and inflation since FY 2003-04. Also, the
Legislature must exempt hospital districts, fiscally constrained counties and cities therein, and children’s services councils from the
required rate roll back by general law.
-
A Cap: Limits future local government revenues to
the rolled-back-rate (which allows revenue growth in proportion to community growth) plus changes in the Consumer Price Index.
-
A Swap: Establishes a formula that provides local control and
flexibility to further reduce property taxes on homestead properties.
“House Republicans are once again leading the way on tax relief,”
said Majority Leader Marty Bowen. “Today's vote was about challenging the status quo and giving the people of Florida the final say over how
they will be taxed. I am proud of the Republicans and Democrats who voted for this historic property tax relief and reform measure.”
House Bill (HB)7001 was approved unanimously and provides $6.3 billion dollars in immediate tax relief this year and will cut the average
property owner’s bills by 19%. HB 7001 provides immediate relief with a property tax cut, and a
cap on local government taxing and spending.
- A Cut: Requires an immediate reduction in millage rates for all local
taxing authorities except school districts, fiscally constrained counties, hospital districts, and Children’s Services Councils. Millage rates
will be limited to what they would have been if revenues had only grown in proportion to inflation plus community growth since FY 2000-01. This will
apply to FY 2007-08.
- A Cap: Links future growth of local revenues to community growth and
inflation. Beginning in FY 2008-09, growth in property tax revenues is limited to the “rolled-back-rate” plus changes in the Consumer
Price Index. This cap applies to all taxes except those levied for school districts, for the payment of bonds, or for a 2-year period when authorized
by a vote of electors.
In addition, HB 7001:
- Requires a supermajority vote of the governing authority to exceed the revenue cap. Approval
by the greater of 2/3 of the governing board or a majority plus one can exceed the cap for the current fiscal year. Failure to comply with this vote
requirement will forfeit state revenue sharing.
- Taxpayers will see relief on their next tax bill (in November 2007).
- Provides immediate tax relief averaging 19% savings on the total tax bill.
- The average affected county’s total budget will be reduced by about 9%, and the average
city’s total budget will be reduced by about 7%.
