Property owners of Lee County, which includes Bonita Springs and Estero Florida, the following chart is a proposed schedule of the new property tax adjustment and fees.

IF YOU HAVE A HOME WORTH LESS THAN $600,000
IT IS TO YOUR ADVANTAGE TO ELECT THE NEW "SUPERHOMESTEAD"

IF YOU HAVE A HOME WORTH MORE THAN $600,000
YOU SHOULD ELECT THE NEW "SUPERHOMESTEAD"

CAPITOL CONNECTION

Property Tax: Immediate Statutory Relief

HB 1B

Requires all local governments except school districts to cut taxes this year.

•-   First, cities, counties, and independent special districts must reduce taxes for the 2007-2008 Fiscal Year by adopting the '06-‘07 tax levy, adjusted for new construction (i.e., adopt the rolled-back rate).

•-   Next, cities and counties must further reduce taxes by a factor based on whether they have recently levied property taxes responsibly or excessively, compared to a statewide average. The reduction factor will be 3%, 5%, 7%, or 9%, the rollback will be based upon the taxing history of the county or city. 

•-   All independent special districts are required to implement the 3% reduction factor, as are MTSUs (municipal service taxing unit) and dependent special districts administered by counties and cities that deliver emergency and fire and rescue services.

Requires all local governments except school districts to cap annual property tax revenue growth.

•-   Property tax revenue growth will only be allowed to increase in proportion to population growth (i.e., new construction) and growth of Florida personal income (which averages 4% annually). 

A revenue cap creates unprecedented protections for all Florida properties

•-   Specifically commercial and non-homestead residential properties, which currently have no protection.

Protects taxpayers while allowing local flexibility by requiring a rigorous procedure to override the required revenue cap.

•-   Depending on the extent to which the local authority wants to exceed the revenue cap, varying supermajority votes are required.

•-   A slight increase requires a 2/3 vote, while a larger increase will require either a unanimous vote (or 3/4 for boards of nine members) or approval by local voters.

Creates immediate tax relief for all properties in Florida this year.

•-   Homestead property owners save an average of 7% ($174).

•-   Non-homestead residential property owners save an average of 7% ($199).

•-   Commercial/industrial property owners save an average of 6% ($941).

•-   Tangible personal property taxpayers save an average of 6% ($92).

Property Tax: Constitutional Relief & Reform

SJR 4B

Creates a new "super" homestead exemption to transform the inequitable Florida property tax system.

•-        The new exemption covers 75% of the first $200,000 of value and 15% of the next $300,000.

•-        Thus, the maximum super exemption is $195,000.  

•-        All homesteads will receive at least a $50,000 exemption.  

•-        Qualifying low-income seniors will receive at least a $100,000 exemption.

•-        The upper $500,000 threshold is indexed to grow with changes in Florida personal income, which generally increases 4% per year.

Allows existing homestead owners to choose to keep their Save Our Homes benefits or switch to the new super homestead exemption.

•-        When the taxpayer moves to a new home, the new super homestead exemption will apply. 

•-        This creates a form of portability for homeowners who would otherwise lose significant   tax savings when they move.

•-        Rather than starting over with only a $25,000 homestead exemption and zero Save Our Homes protections, the homeowner would immediately have a homestead exemption up to $195,000 as soon as they move in.

Authorizes a new $25,000 Tangible Personal Property (TPP) exemption for businesses.

•                         

•-        This creates immediate savings of hundreds of dollars for TPP-paying business owners.

•-        It also eliminates the administrative burden of filing a tax return for $1 million of Florida's 1.3 million businesses that pay tangible personal.

•-        Authorizes targeted relief for affordable housing and working waterfront properties.

Implements tax reform and relief for 2008 tax bills, provided the Legislature votes for a special election in January 2008 (HB 5B).

•                         

Offers $16 billion of tax relief over five years.

The savings by property type in 2008 are:

•-        Average Homestead switching from Save Our Homes: 44% ($1,306)

•-        Average Non-homestead Residential: 8% ($245)

•-        Average Commercial/Industrial: 8% ($1,240)

•-        Average Tangible Personal Property savings: 17% ($262)

Property Tax: Accelerating Reform with a Special Election

HB 5B

Authorizes a special election for a public vote on SJR 4B.

•-        The special election will coincide with the Florida Presidential Preference Primary on January 29, 2008.

•-        Placing the proposed constitutional amendment on the ballot in January 2008 makes the new reforms and savings available for tax bills in November 2008.

•-        Prevents the possibility that permanent tax relief and reform would be delayed until November 2009 tax bills are issued.

Allows voters of all political affiliations to vote on the proposed constitutional amendment.

•-        Florida's election law creates a "closed" primary, wherein only registered members of a party can vote for candidates of that party. However, all voters may vote on the amendment.

•                         

Saves Florida taxpayers the expense of paying for a statewide referendum if the special election were to occur on some other date.

•-        The Department of State has estimated that the statewide cost of holding a special election is $21 million.

•-        Rather, this bill appropriates $60,000 for the Department of State to implement and advertise the constitutional amendment.

TRUDI'S THOUGHTS

This week the state legislature passed a historical tax reform package.  The volleying back and forth was a sight to see and a testament to the democratic process.  Though this legislation is complex, I hope that this information will better help you to understand it.  I feel as though if implemented correctly, the impacts of this legislation will be felt statewide as citizens will see an immediate reduction in their property tax bills.  I look forward to Governor Crist signing this legislation as soon as possible because it will put your money back where it belongs, in your wallets and pocketbooks.

Please send correspondence to Trudi.Williams@myfloridahouse.gov.  All comments are reviewed by Representative Williams.  To receive a response, please include your name, address and telephone number.  To unsubscribe from this e-mail, send a blank e-mail to Trudi.Williams@myfloridahouse.gov with "unsubscribe" in the subject line.