CART: Tax reform package falls short

By Cindy Lane
sun staff writer

The Coalition Against Runaway Taxation (CART) are displeased with the proposed property tax Constitutional amendment passed last week by the Florida Legislature.

"It’s only a half job," CART President Don Schroder said. "We’re very disappointed that they did not consider working waterfronts for hotels and motels, and ‘highest and best use’ was not addressed."

The Anna Maria Island-based group had hoped that the legislation might redefine the way that non-homesteaded property is assessed, using an income-based standard instead of valuing property based on its potential "highest and best use," typically, condominiums.

CART is also unimpressed with one of the legislation’s four major components, which limits tax assessment increases for non-homesteaded property owners to 10 percent a year.

"There’s no benefit, or very little, to commercial and second home property owners with a 10 percent cap," Schroder said, adding that before the recent real estate explosion, the normal annual appreciation factor was about 5 percent. "It will be years before these properties appreciate over 10 percent."

The legislation will appear on the Jan. 29, 2008 ballot for statewide approval or rejection by voters. If it’s approved on Jan. 29, the 10 percent limitation on annual assessment increases will apply to the 2009 tax roll. If it’s approved in the November, 2008 general election, it will apply to the 2010 tax roll.

The legislation also doubles the homestead exemption from $25,000 to $50,000 for homeowners whose property is worth more than $50,000. This exemption does not apply to school district taxes.

Portability also made it into the legislation, allowing homesteaded property owners to transfer up to $500,000 of their Save Our Homes exemption benefits to their next homestead within one year and not more than two years after selling their previous homestead.

The assessment would be based on the difference between the new home’s just value and the assessed value of the last homestead. If the new homestead has a higher just value than the previous homestead, the added benefit can be transferred. If the new homestead has a lower just value than the previous one, the amount of the benefit transferred will be reduced.

The portability provision applies to all taxes, including school district taxes.

If the legislation passes on Jan. 29, 2008, the portability provision will take effect retroactively to Jan. 1, 2008. If the legislation is approved in the general election in November, 2008, it will take effect on Jan. 1, 2009.

The legislation also provides a $25,000 exemption for tangible personal property, applicable to all taxes, including school district taxes.

Proposals that did not make it into the final legislation include limits on assessments for working waterfront properties such as commercial fishing operations. Also gone are plans to eliminate taxes for seniors over 65 who earn under $23,604 a year, a $25,000 exemption for new-home buyers and a minimum homestead exemption equal to 40 percent of the median homestead price in each county.