Just in the past few weeks the war against property taxes has expanded across several
more fronts - each one more responsible than the Legislature's vain effort at reform during October's special session.
One
proposal, a citizens petition, restricts property taxes to 1.35 percent of a parcel's taxable value. The tax bill on a
piece of property valued at $100,000, with no exemptions, would be $1,350, amounting to a 26 percent reduction on average.
The plan, which retains Save Our Homes and the homestead exemption, cuts property taxes by $8 billion statewide.
A new
statewide coalition called Cut Property Taxes Now is sponsoring the measure, which could land on next November's ballot.
Another
proposal, from a powerful statewide panel, seeks to repeal many of the state's sales-tax exemptions and exclusions and
use that money, estimated at $9 billion annually, to replace local property taxes that fund public schools. The savings on
property-tax bills would range from 30 percent to 45 percent.
The Taxation and Budget Reform Commission, which is appointed
every 20 years by the governor, House speaker and Senate president, is charged with re-examining the tax code and can place
proposed constitutional amendments before voters - this one, too, in November 2008.
Both merit further discussion and
analysis.
And both come on the heels of an act of desperation by the Legislature, which spit out a last-minute plan
for property-tax relief during the waning moments of yet another special session. Their proposed constitutional amendment,
which comes up for a vote Jan. 29, would chop property taxes $12.4 billion over five years with school revenues taking a $2.8
billion hit.
The plan doubles the $25,000 homestead exemption, amounting to an average tax savings of $240 a year; allows
homeowners to retain their accrued Save Our Homes benefits when they move; and sets a 10 percent annual cap on nonhomesteaded
assessments. The doubling of the homestead exemption would not apply to schools.
This ballot issue has come under fire
from a number of quarters, including those who question its fairness to nonhomesteaded property owners and those concerned
with education. A St. Petersburg Times-Bay News 9 poll taken in November shows waning public support - at 53 percent among
registered voters, well short of the 60 percent required for passage of a constitutional amendment. That number plummets to
47 percent when respondents learn about the plan's specific provisions.
This proposal is not measuring a passable
pulse, yet Gov. Charlie Crist - who campaigned on Save Our Homes portability and doubling the homestead exemption - is plowing
full steam ahead. He has appointed a top aide to run a statewide effort to boost support for the plan, and he is seeking donations
from business trade groups in order to fund an advertising campaign.
This plan, though, only serves to compound inequities
in the state's tax system, and we suggest Crist put his efforts elsewhere.
The 1.35 percent proposal, though, applies
to all properties, including homes owned by snowbirds - making it more fair than January's amendment. But the plan faces
a steep uphill climb in order to secure a spot on the November ballot, needing some 61,000 signatures on petitions by the
end of December to trigger a Florida Supreme Court review of the ballot language. If that passes muster, roughly 550,000 signatures
would have to be collected by the end of January.
The sales-tax measure - long a pet project by Bradenton businessman
and former state Senate president John McKay - targets hundreds of materials and services currently untaxed. Many are justified
and such "necessities of life" items as food, prescription drugs and health services would remain exempt. McKay
is also not going after lawyers or advertising. The commission's tax code committee is looking at Internet sales, courier
services, pro sports franchises, lawn care and swimming pool services, to name a few.
With support from two-thirds of
the commission's 25 members, the amendment could be placed on the November ballots - though it, too, would require 60
percent passage.
With another $1 billion revenue shortfall predicted several weeks ago and continued economic grief
ahead for the state, Florida will be challenged to come up with a more equitable tax system - whether that comes from a citizens
initiative or a political effort. At least now there are more ideas on the table. We hope voters agree on one thing: January's
ballot measure is not the answer.
