Because I sent a letter to the Florida Senate urging them to come up with viable solutions to tax reform, I received a letter from Senator Lisa Carlton. She included an overview of the new tax relief, reform and protection. Here is how the Senator presented it:
Tax Relief, Reform and Protection
Overview
- The Florida Legislature--in response to the cry of property owners burdened by runaway tax hikes--passed the largest tax cut in Florida history!
- HB 1B and SJR 4B will save Florida taxpayers up to $31.6 billion over the next five years.
- --15.6 billion in tax relief and reform starts in 2007. (Statutory)
- --Up to $16 billion in further tax relief with the passage of the constitutional amendment.
- *Voters will make their choice on the Presidential Primary (Jan 29, 2008)
- The relief is immediate--all property taxes will begin to drop this year.
- The reform is long term--our statutory changes and proposed constitutional changes reform the tax property tax system ensuring that unaffordable tax spikes will never occur again.
HB 1B (statutory changes)...The statutory change accomplishes two things: tax cuts now and a revenue cap forever
- The legislation requires that all cities and counties cut property taxes in the upcoming 2007-2008 fiscal year to the 2006-2007 revenue levels, minus 3-9%
- The bill caps local government spending so that government will not grow faster than a family's ability to pay.
- This bill recognizes the needs of firefighters and environmentally sensitive lands. It requires more modest cuts to special districts and fiscally challenged cities and counties--protecting essential services from dramatic revenue cuts.
This legislation respects local control. All local governments have the option to override the roll backs and caps on revenue (by extraordinary votes).
SJR 4B (constitutional amendment)...On January 29, 2008 voters can create a new "super tax exemption"
- The constitutional amendment provides for substantial increase in the homestead exemption. Homeowners will receive between $50,000 and $195,000 super exemption (depending on the value of their home), as compared to the flat $25,000 exemption in Save Our Homes.
- Going forward, these property owners would benefit from the cap on local government spending.
- This innovative plan offers measure of portability without violating the U.S. Constitution
- SJR 4B preserves all existing constitutional property exemptions (veterans, low-income seniors, etc)
- Florida businesses will benefit from the constitutional amendment with a $25,000 exemption from ad valorem taxes on tangible personal property (TPP). Of the 1.3 million businesses expected to file this year, 1 million will receive a total exemption. Furthermore, they will never have to file the burdensome paperwork associated with the tax again.
- The plan offers a reduced tax assessment on properties used to provide affordable housing.
- In addition, the SJR authorizes the legislature to provide a tax reduction to working waterfronts assessments.
- Finally, the plan allows each homestead property owner to choose between the new super exemption OR the current "Save our Homes" plan.
- Though some have said the tax cut will translate into a cut in education, the claim is simply not true.
- --Education funding is protected by the state constitution
- --Each year, rain or shine, the Legislature has increased funding.
We can have tax cuts and a quality education for our children.
Folks, that's it exactly how it was presented to me. I think we are finally moving forward with tax reform in our Florida. I think it's a work in progress and will take some time to work out all the kinks, but it IS a start and I'm happy to see it come to fruition.
Comments(0)