Relief for Florida taxpayers?

Relief on the horizon?  From today's Palm Beach Post...

This could be great assuming it passes for homeowners!  What do you think?  I almost feel like it sounds too good to be true, and its got to be hurting local government's budgets somewhere...and I wonder if we'll end up paying more somewhere else in the end.  It's too early to tell just yet.

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http://www.palmbeachpost.com/state/content/gen/ap/FL_Property_Tax.html

Legislative leaders agree on $31.6 billion tax cut over 5 years

By BILL KACZOR
Associated Press Writer

TALLAHASSEE, Fla. - Florida homeowners' bills would drop by an estimated average of $1,300 annually as part of an agreement that legislative leaders announced Friday to cut property taxes by $31.6 billion over the next five years.

The overall reduction of 16 percent over that five-year span is being touted as the biggest tax cut in Florida's history. The proposal will be presented to the full Legislature when lawmakers meet in special session next week.

"We are confident that when this plan is implemented, Floridians will finally have a more equitable tax system that will yield property tax bills that they can afford," House Speaker Marco Rubio and Senate President Ken Pruitt wrote in a letter to their colleagues.

It is the product of behind-the-scenes talks held by Rubio, R-West Miami; Pruitt, R-Port St. Lucie, and other legislative leaders.

Gov. Charlie Crist, who made property tax cuts a key issue in his election campaign last year, praised the agreement in a statement issued by his office.

"Hardworking men and women who have suffered under skyrocketing property taxes in communities across our state are closer to finding the relief they so desperately need," Crist said. "Florida's economy is strong, and reducing property taxes under this historic plan will make it even stronger."

The $31.6 billion cut is slightly less than a compromise Crist had offered after the House and Senate were unable to agree on an amount during the Legislature's 2007 regular session, which ended May 4.

The House had sought up to $47 billion over five years while the Senate's final offer was about $20 billion.

The special session is scheduled to begin Tuesday, but a joint select committee on property taxation will meet Monday to review the agreement.

It has two main elements:

_ A state law the Legislature can implement immediately to require that most cities and counties cut property taxes $15.6 billion over the first five years, and then cap all future increases with allowances for new construction and personal income growth.

_ A proposed state constitutional amendment that would go before voters at the Jan. 29 presidential primary to give primary homes a "super exemption," and other tax breaks for businesses, "working waterfronts," and low-income, elderly homeowners, for an additional cut of $16 billion.

The Legislature's push for property tax relief and restructuring is in response to a taxpayer outcry over sharply rising tax bills caused largely by soaring property values over the last four or five years.

The combined effect of the two-pronged proposal is expected to cut the average tax on a primary home, known as a homestead, by $1,300, or 44 percent, in 2008-09.

The non-constitutional, or statutory, provision would chop city and county taxes by 3 percent, 5 percent, 7 percent or 9 percent based on how much each has increased taxes over the last five years. Those with the biggest increases would have the largest cuts.

Some cities and counties with very low tax increases and those facing financial hardships due to such factors as low property values would be spared from the statutory tax cuts, but they would be covered by the cap on future increases.

All cities and counties would be able to exceed the cut-and-cap limitations through votes of more than a simple majority by their governing bodies or by putting the issue to voters.

That provision drew praise from Florida Association of Counties President Susan Latvala, a Pinellas County commissioner. But, said in a statement, that she's still worried the legislation "continues to erode the authority of local governments to decide how best to handle local taxing decisions through a one-size-fits-all approach."

The super exemption would replace the existing $25,000 homestead exemption and a 3 percent annual limit on homestead assessment increases under the Save Our Homes Amendment, which went into effect in the mid-1990s.

The proposal would exempt the 75 percent of the first $200,000 of a home's value and 15 percent of the next $300,000. No home, though, would get less than a $50,000 exemption.

It's expected to reduce taxes for 73 percent of homesteads. Others would be able to keep their existing tax breaks.

School districts would be exempt from the tax rollback and cap and would receive other revenues to make up for money lost due to the super exemption. Pruitt and Rubio did not specify where those "hold harmless" dollars would come from.

The super exemption is designed to reduce inequities caused by Save Our Homes. It has shifted tax burden to businesses and other non-homestead properties and meant recent home buyers have to pay much higher taxes than those who bought many years ago.

The amendment also made some people feel trapped in their existing homes because they would lose its benefits if they moved.