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Florida Legislature passes Property Tax Relief Package

By
Real Estate Agent with Exit Realty Oceanside

Evergrene Gate HouseLighthouse Cove in TequestaCity Place in West Palm Beach

Property tax reform passed

The Florida Legislature, in three short days, passed three bills that make up the property reform package.

The package includes a statutory rollback and cap of the property tax rates. Also, a proposed constitutional amendment which creates a "Super Homestead Exemption" along with a bill designating the January 29, 2008 presidential  preference primary as the date for the residents of Florida to vote on the "Super Homestead Exemption" amendment.  The agreement consists of a two-tiered plan to achieve immediate and long-term tax reform.

Immediate Tax Relief:

Recently, I attended a "Town Hall meeting" in which Governor Charlie Chris and Congressman Atwater promised the citizens of Palm Beach County that they would to do everything in their power to get  a bill passed in order to give relief  to Florida property owners. I was skeptical, but I must say it got done.


Per the bill, tax rates must be lowered by cities and counties in Florida based on past taxing.  $15.6 billion of tax relief over five years is offered in the plan.  The really good news is that the savings will begin this year and the statutory component affects all properties.

In the town meeting I attended, I recall a gentleman speaking about how much his taxes and insurance had increased on a commercial building he owned in spite of the fact that the actual value of the building had gone down.  He continued talking about the taxes on a house he owned in Jupiter Farms.  Even though the house had been destroyed in the hurricane, his taxes increased.  If it were not so sad, it would have been hilarious......It sounded  like a sitcom.  Fortunately for this gentleman and all other commercial property owners, the statutory component in this plan affects commercial as well as homestead and non-homestead properties.

All cities and counties must adopt the rolled-back rate for the coming fiscal year.  Excluding taxes from new construction, property taxes levied for the fiscal year of 07-08 must be equal to taxes levied for the fiscal year of 06-07.

Governor Chris spoke at the "Town Hall" meeting about rolling the taxes back to 2001.  Again, I was skeptical.  Like everyone else, I've heard too many promises from too many of our governmental leaders.  I am pleasantly surprised!

The bill requires each city and county to further reduce taxes based on the county's recent taxing history from 2001 to 2006.  This is the period in which the property values increased so fast.  The cities and counties in which the taxes were raised at a faster rate than the average statewide rate will have the largest tax cuts. 

The bill requires all local ad valorem taxing authorities, beginning 2008-2009 and every year thereafter, to set millage rate in accordance with the rolled-back rates.  This will be adjusted by the annual growth of Florida personal income.  (The exception is school districts.)  The bad news is that a local governing authority may override the cap requirement.

Long-term Reform

Inequities in the property tax system are being cured by the constitutional amendment by transforming Save Our Homes through a new "super homestead" exemption.   $16 billion of tax relief is offered through this component.

The new exemption covers:           

     75% of the first $200,000 of homestead value

     15% of the next $300,000

     (all homesteads will receive at least a $50,000 exemption).

The current homestead owners will be given a choice as to whether:

     to keep their benefits and assessment cap under Save Our Homes or

     to use the new super exemption. 

The combined elements of the Immediate Tax Relief Plan and Long-term Reform  offer $31.6 billion in tax relief over the next five years.

Special Election:

A special election is authorized by this bill for the Long-term reform.

Voters will have the opportunity to adopt the proposed constitutional amendment during the presidential preference primary on January 29, 2008. 

If the amendment is approved by the voters, it will lower Florida property taxes in 2008; however, If the vote on the constitutional amendment is delayed until the general election in 2008, the reforms will not take effect until tax bills are calculated in 2009.

I am pleased to see Democrats and Republicans work so closely together for the good of the residents of our state.  Hopefully, we will se more of this type of cooperation in the future in Tallahassee as well as Washington!

For More Information, Call:  Virginia Gallopo (561) 346-8423 

 

Comments (1)

Exit Team Realty Coral Springs
Exit Team Realty - Coral Springs, FL

Thanks for the Update - We would like to use it for this weeks sales meeting...

Great to have your experience in the office!!!

Jun 16, 2007 06:09 PM