In a rare appearance Senator Mike Haridopolos (R-Melbourne) spoke to a large number of members from the Osceola County Landlords Association on December 6th 2007.       He addressed their concerns over huge property tax increases and outlined the plan that will be on the ballot for voters to decide January 29th, 2008.    "Property tax revenue should not exceed personal income" he said, using a chart which depicted the disproportionate increase of the two and how a "bridge" needs to be implemented to bring them back together. 

 He cited the rather flat line which for twenty years had made living in Osceola County affordable. He cited during that time all basic necessities were met. Police, fire, roads and schools, until the spike in 1999-2006.  At which point the expenditures far exceed family income. As Finance Committee Chairman, he noted that Property Taxes for that period rose a sharp 83%. "There needs to be transparency in spending" Haridopolis said. "The goal here is put 27 Billion Dollars back into the economy. We need to lower assessments and ease the burden on taxpayers to stimulate growth." "We have to put government on diet as one taxpayer told me" he said.  

 The plan voters will decide on in January is a four part plan designed to reduce expenditures by government, by curtailing  the exorbitant property taxes landlords of small businesses are currently facing. He cited that recent assessments have risen 20-40% and that many landlords are unable to rely those costs to their tenants. As a result, many have fallen behind in making mortgage payments, and "Intervention was needed" due the recent mortgage crises and stubbornly declining Real Estate market. He noted that Real Estate transactions have declined 63% since last year.  

HOMESTEAD EXEMPTION INCREASE

Voters will have the right to retain their current Homestead Exemption.   It will increase from the current $25,000 property tax exemption to a tiered reduction inclusive of an additional $25,000 for property valued over $75,000.   The example cited was a home with a assessed value of $77,000 would receive the current $25,000 exemption leaving the remaining $22,000 subject to property taxes.  A home worth $200,000 would receive a $50,000 exemption reducing taxes owed on the remaining $150,000. Taxes applied to School and Education would remain unchanged.  

PORTABILITY

 This issue addresses the sale of one property and purchase of another. "The percentage of savings enjoyed with the Save Our Homes benefit, are taken with you when you move" Haridopolis summarized. It would apply to the purchase of a larger home, or a smaller home in 2007.  Once Homesteaded the "credit" would be applied to any future purchase to offset soaring Property Tax increases.  "The problem was when someone bought a home the property taxes doubled or tripled, the average family simply could not afford to move" he said. By taking the tax exemption difference (remainder) and applying to the taxes owed on the newer property, it would effectively prevent the taxes from soaring at a disproportionate level and provide them protection.  Haridopolis said "Many homeowners are forced to stay in their homes because, if they move the taxes will increase and they cannot afford to pay the higher taxes".  There is a cap of $500,000 on the transfer. Starting in 2007 property owners who sell their homestead have up to 2 years to transfer the cap to a new homestead.   NON-HOMESTEAD PROPERTIES If approved in January, the cap on non homesteaded properties would be 10% beginning in 2009. The 10% cap would apply to all levies, with the exception of school districts.  

INTANGIBLE TAX

 Tangible Personal Property (TPP) A new intangible tax exemption of $25,000 will be voted on in January 2008.  If approved by taxpayers the $25,000 TPP exemption would be applied to all levies for the 2008 tax roll. This would apply to mobile home owners as well.    The Roll Back rate which is already law requires cities, counties, and independent districts to adopt the "Rolled Back: Millage Rate each year. The Millage Rates are set to ensure that the tax revenue for the current year must be equal to the tax revenue for the prior year. This excludes new construction and an adjustment for a statewide income growth rate.   

Tom Long, President of the Osceola County Landlords Association said, what Senator Haridopolis is basically saying here is "if you cut taxes, you can reduce prices, if you reduce prices, you see the return of value". Long has worked tirelessly to reduce the burden of taxpayers in Osceola County urging government to provide some sort of relief. Senator Haridopolos attended this meeting as a result of Mr. Long's efforts.  

Both Haridopolos and Long jointly urged Landlords to attend County and City Commission Meetings, make contact with local elected officials and voice their concerns over tax issues.  "Politicians react from pressure" Haridopolis said.   

 Frustrated property owners cite that many cannot vote in local issues because they do live in areas where they own.  They have no vote.   "Email them, call them, make them aware something has to be done" he said.  "Maybe I should sell off my properties here and move somewhere where I can actually afford to live like Georgia, North Caroline or Tennessee said one irate property owner.  

Judy Lafferty of St. Cloud, Florida spoke passionately about the tax difference in her protected Homesteaded Property and a property she purchased six years ago as a rental just a few doors down. The rental property taxes are three and a half times higher, than her protected homestead. Making it impossible to pass those costs along to her long term tenants she fears she will ultimately lose her investment home. "Services have not improved but the taxes have doubled" she said. Nodding in agreement was Mary Dawns also of St. Cloud.   There needs to be reassessment on everyone's home to put things back in balance. 

Ken Pennington, from the Osceola County Tax  Assessor's office said " Call our office, we will meet with you, and review your property and see what can be done to properly assess the value. The cut off for reporting to Tallahassee  was October 4th, 2007 to make any corrections, however, he said "we can work on reassessing the values for next year" He also pointed out that the way properties are assessed is "based on sales from the previous year.

Since sales have been in short supply it makes this a difficult task".  He stated that "the Tax Assessors Office is willing to review any property and suggested that Property Owners contact his office to have an appraiser come to the property they are disputing and see what can be done to reduce the Property Taxes.  Property Owners have been hit hard over the past few years, and the Tax Assessors Office is prepared to make adjustments in the coming year.  Reducing the taxes, will allow landlords to maintain reasonable rents and provide affordable housing for the people who live in St. Cloud, Florida