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Sign the 1.35% petition

Group suggests property tax limit - Bradenton Herald, 11-29-07


Taxpayer Alliance proposes 1.35 percent cap on taxable values

By NICHOLAS AZZARA
nazzara@bradenton.com

The state's largest taxpayer advocate groups, unhappy with this year's property tax reform, have taken matters into their own hands by proposing a tax solution that's about as simple - and as sweeping - as any around.

But time is running short for the proposal to make it onto next year's ballot.

The Florida Taxpayer Alliance, which boasts 100,000 members across the state - including Manatee's Coalition Against Runaway Taxation - is pushing a new plan to cap property taxes at 1.35 percent of taxable values.

For example, a home or business with a taxable value of $100,000 would have its taxes capped at $1,350. This year, the same home would have been taxed about $1,534 in the least taxed areas of the county.

"It is fair and equitable because it treats all property owners fairly," said CART President Don Schroder. "It continues to protect those with Save Our Homes, and it would certainly give significant tax reform. This is the first proposal that we feel starts getting everyone on a level playing field."

The reform could be worth $8 billion in savings for homeowners, business owners and owners of second homes. Prior and proposed tax reform has really only addressed taxes for homesteaders, when non-homesteaders are the ones crying out for relief the most.

If the plan sounds familiar, it is. In 1978, California's Proposition 13 capped real estate taxes at 1. Even after almost 30 years, opinions still differ on whether the redistribution of the tax base and the cost in lost tax revenue outweigh the benefits, according to the National Bureau of Economic Research.

But the clock is ticking.

For the plan to appear on next November's ballot, the grassroots movement must collect 61,000 signatures by the end of December in order for the Florida Supreme Court to rule on whether the wording is clear enough to appear on the ballot. If the petition passes the court's test, another roughly 550,000 signatures would need to be collected by the end of January.

That's why each of the major branches of the taxpayer alliance is peppering e-mail lists across the state, asking supporters to download the petition, sign it and send it to Cut Property Taxes Now, Inc., P.O. Box 10585, Riviera Beach, FL 33419.

Locally, CART is advertising its Web site, www.cartonline.org, and sending the petition to up to 5,000 people on its mailing list. It also has plans to collect signatures wherever they're given permission.

"It's going to be difficult," Schroder said. "We're working hard at it. We're pushing everyone we know. But if we don't get it now, we'll go for the 2010 ballot."

Taxing authorities like schools, counties and cities would certainly feel the pinch of the cuts. The Legislature would determine how to break down property taxes.

Following tax reform adopted in June, Manatee County and its municipalities slashed budgets by up to 9 percent, which spelled millions in savings for local taxpayers. More cuts are likely if a tax reform on the Jan. 29 ballot is approved by at least 60 percent of voters.

Dale Friedley of the Manatee County Property Appraiser's Office estimated that the 1.35 percent plan could mean a reduction of 18 percent or more to local government budgets.

"It will be difficult to assess exactly what will happen, but it would be much more of a forced reduction in tax bills than any of the other scenarios being proposed," Friedley said.

Finance Director Jim Seuffert said more tax cuts would mean the county starts cutting into the "meat" of its budget.

When trimming this year's budget, "we didn't really get much into operations at all," Seuffert said. "But now you're going to have to cut into services and operations. By the time the effects of those two things are felt next summer some time, you have to wonder how much more of an appetite people will have."

Schroder's group and others are confident the appetite will remain until local governments are forced to examine their expenditures and prioritize needs.

Rep. Bill Galvano, R-Bradenton, said he still hopes lawmakers and the Tax and Budget Reform Commission can push through significant reform next year. He also wants to see a full analysis of how the cap plan would affect local government.

"If our tax system were based on that formula, people would see a reduction in their property tax, and that's a good thing," Galvano said. "I want to make sure we've done our homework, and that there's not a better means to address the issue to see if we can't do it legislatively."

Regardless of whether the plan makes it onto next year's ballot, taxpayer advocate groups say they'll ask for even more. Miami physician Dr. Jose Valladares, the founder of Fair Property Taxes for All, said the 1.35 percent plan is only the beginning.

"We can only put one issue on the ballot, so we had to choose not the best, most complete solution, but something that helped everyone," he said.

Nicholas Azzara, county reporter, can be reached at 745-7081.

Proposed Constitutional Amendment

Provides that the total property tax on any parcel of real property shall never exceed 1.35 percent of the highest taxable value of the property. This property tax limit shall apply to all property taxes except property taxes approved by voters. Distribution of revenue from parcels that have reached the 1.35 percent limit shall be determined by general law. Does not amend Save Our Homes, the Homestead Exemption or any other exemption.