It appears that the "Super Exemption" is off the table and Tallahassee is pursuing additional Band-Aid solutions to a serious problem. Unfortunately, the Band-Aid is being placed on healthy skin instead of on the wound that continues to bleed. All taxpayers need some help, but the ones that have been hurt the most will be helped the least by latest proposals.
Who are the people hurting the most? See if this sounds familiar?
-homeowners who bought during the "housing bubble" between 2002 and 2007.
-renters with large rent increases from landlords who had unlimited tax increases. Rents are becoming unaffordable for some and we wonder why the homeless population is increasing?
-landlords and business owners who must pass unrestrained taxes increases to tenants, customers and tourists. Higher prices on everything are another hidden tax for all Floridians. At what point will tourists start taking their business to Cozumel, Bahamas or Mississippii when Florida becomes too expensive?
-snowbirds who maintain a winter residence in Florida. Like them or not, they add significantly to the Florida economy.
-any Floridian with a home or property he/she ever wants to sell. Outrageous taxes will continue to put a lid on the real estate market and depress the market value. When taxes & insurance are higher than mortgages, how are we going to get out of the real estate slump? Currently, downsizing a home often upsizes the property tax. Many Floridians are trapped in homes/locations they don't like because they can't afford to leave.
I think the best idea is the grass roots plan for a 1.25% flat tax on all properties. This plan is fair, simple, and helps everyone. Here is the jist of the plan from the www.CutPropertyTaxesNow.com website.
“Today, Cut Property Taxes Now - a new and separate organization - announced its proposal to amend the state constitution in 11/08 to cut taxes for all Florida Property Owners. The Key points of the proposal would:
1. Tax all property at no more than 1.25% of its taxable value.
2. Keep the effect of the Save Our Homes cap – permanently.
3. Provide strong tax relief to homestead and non-homestead property owners.
4. Cut local government property tax revenue by about 25% across the state.
5. Takes effect in January 2009.
To put it more simply, here are the taxes that would be paid on all property based on its taxable value (the value on your Trim notice after Save Our Homes and exemptions). This applies to homesteaders and non-homesteaders:
Taxable Value Property Tax
$100,000 $1,250
$200,000 $2,500
$300,000 $3,750
$500,000 $6,250
$750,000 $9,375
$1,000,000 $12,500"
This plan reduces revenues by about 25%, but considering that property tax has gone up almost 100% in the last 6 yrs it is fair to county/city governments who received "windfall profits" from the housing bubble.
If you like this plan, please go to the website and print out their petition and send it in. If they get the 600,000 petitions needed, they will put this proposal on the ballot as a contstituional ammendment. I mailed mine today!