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The Vote on The Florida Property Tax...Amendment 1...is just days away. The Governor, The Media, The Florida Association of Realtors and many other groups are trying to appease homeowners with a "band-aid" fix to the Florida Property Tax issue. Local Governments are using the "scare tactic" that we will lose our basic services. I am a longtime-homeowner and a Real Estate agent. I am TIRED of the media failing to give Floridians ALL of the facts, so I have spent many months researching this issue and explaining why I am opposed to it. I want REAL tax reform, not a band-aid that perpetuates the problem. This article is VERY long...please take the time to read it and VOTE at the end. I am tired of the pressure from FAR and the Governor's office.  It is a self-serving attempt to create a few more real estate sales in a sagging market, but it is NOT the solution to the inequity in the tax system.  It further divides "old homebuyers" and "new homebuyers" and I WELCOME any Intelligent comments from agents who believe further discrimination between those groups is the right thing.  Please DO NOT tell me you are in favor of it, because it will "pad your wallet" this year with a few sales due to the portability. That makes me sick.  And, tells me all I need to know about your "ethics"... !"Focus on "doing the right thing", not "doing the right thing for YOU.


For MONTHS, I have been discussing the ongoing saga of the Property Tax Reform Issue. In my opinion, the latest plan is the WORST yet.

Let's start with the reason we are in this situation in the first place....The "Save Our Homes" amendment...what was intended to keep longtime Florida homeowners from being taxed out of their homes has become a nightmare. The annual 3% cap on assessed property values required by the amendment has kept many property owners "trapped" in their homes, because moving to a smaller home could still raise their tax bill. Neighboring homeowners pay drastically different property tax bills, based on the time they purchased. Recent homebuyers pay the lion's share of the taxes in the state, because of the rise in market values over the past several years. Let's use the correct term for this inequity...DISCRIMINATION. Long-time homeowners are treated differently, and taxed differently, than new homeowners. Let's call it "age discrimination" of the worst kind. The bizarre twist in all of it, is that long-time homeowners really feel "entitled" to "steal" from the recent homebuyers.

If you bought a car in the year 2000, would you expect to still pay "year 2000" prices for gas? Do you expect Verizon to charge you "year 2000" prices for your phone service, while your new neighbor subsidizes your phone bill with "year 2008" rates? It is absolutely ludicrous that this tax system was ever introduced, or allowed to continue.

I'm not sure how anyone could claim that properties with the same market value should not be assessed at the same rate, but therein lies the problem created by the "Save Our Homes" amendment. To further compound the problem, now the latest plan includes "portablility"...the ability to take your "Save Our Homes" capped assessment with you to the next house...That is a great way to perpetuate the problem...but it sounds great to the voters who don't understand the long-term implications. The "old" homeowners get to take their savings with them to a new home and the "new" homeowners continue to subsidize them.

** Again...discrimination...long-time homeowners get all the tax breaks at the expense of new homeowners.** The solution: a much-lowered millage rate AND the elimination of the discriminatory practices in the tax system. Or, "consumption-based" taxes tied to a new sales tax. Low-income residents, young, or old, would benefit. Taxes would be fair and equitable.

The average homeowner will get a $240 tax break with this plan. What they will also get, is the END to any further property tax reform. If this amendment is passed, the deal will be done and the discrimination will continue.


I have said this many times...IF WE VOTE NO, THE PLAN GOES TO THE FLORIDA BUDGET AND TAXATION COMMISSION FOR A NEW PLAN...THEY ARE ALREADY WORKING ON IT...

I would like each of you to think about what happened to the "windfall" of taxes created by the increased property taxes of the past few years. Think about why the local governments are vehemently opposed to cutting property taxes. Think about whether we have had an increase in services, better roads, etc. The answer is NO. From 2001 to the present, our population grew less than 15%, while our tax revenues grew by over 60%, some reports put that number at over 90%. Where did all that revenue go? Answer: Into the benefits packages and increased wages of government workers...well beyond the annual cost of living increase. The local governments took the windfall and SPENT, and SPENT AND SPENT! Now, they are whining about Budget cuts and claiming your services will be cut. They aren't offering to take their benefits packages back to the pre-windfall levels, though. They are just whining. And the media isn't telling the real story about where our tax dollars were spent. Why? The lobbyists...they lobby for the cigarette industry, for the tourism industry, for the counties, for the alcohol industry...Who lobbies for the Property Owners? NO ONE. We have to lobby for ourselves.

We should expect our government officials to exercise fiscal responsibility. They need to follow the example of what a CEO in a private company would do: CUT BACK...eliminate benefits, freeze wages, get government workers to understand they are not "entitled" to anything that the tax revenues cannot provide. How many employees would choose to leave for a career in private industry where they would be subject to the "real world" of budgets. Not many. Services would not be cut, but the government would learn to operate more efficiently. We need to review our leaders fiscal responsibility before every election!

I AM in favor of meaningful Property Tax Reform...one that benefits all property owners. I AM in favor of spreading the tax burden across all Floridians, and all of those who visit this State and enjoy it's benefits without sharing in it's burden. I just returned from a week in Las Vegas, where I attended two Real Estate conferences. I was "floored" by the high taxes on everything related to the hotel and restaurant industries. Florida, and the lure of Disney and the beaches, is not dissimilar, but our taxes related to tourism are far less. I AM in favor of more consumption taxes: hotels, alcohol, cigarettes, sales taxes. I AM in favor of little or No Property Tax, with an increase in consumption taxes. Non-homestead property owners should pay property taxes, but at significantly lowered rates. With an increase in sales taxes (which are tax deductible on your Federal Tax return) those who buy more services and goods, would pay more in taxes. More disposable income would create more spending and more tax revenue. Home ownership would be affordable, not a financial burden. The elderly would not be taxed out of their homes.

That, in a nutshell...is my solution. I am Voting "NO" on January 29th, because this plan is not the long-term solution for a better Florida.   Less Government...less taxes...that is the solution. No one is "entitled" to anything, and all property owners are equal. What do you think? Leave me a comment .

Here is the latest proposal from Florida Speaker of the House, Marco Rubio...what do you think? It's MUCH better than the plan that is up for a vote...

 

12 Comments on Florida Property Tax Reform...Why I am Voting "NO" on Amendment 1

JAN
17
2008
482,745 Points 1 Featured Post Localism Sponsor Outside Blog
Morning Jackie,  Just wondering how many replies you will get. Yes, I read the artical and agree that the current proposal is at best a poor answer.   Certainly seems like FAR has bought in to the deal, doesn't it ?  BTW, I plan on voting  " NO ".
10:39am • #1
JAN
20
2008

I have attended town meetings and listen to the pros and cons.  I have heard one person who is the head of a realtors association say voting NO is "like throwing the baby out with the bath water" and advised voting YES.  Another realtors such as Margie with Volusia Tax Reform at the same meeting is against the amendment because it may open SOH to suit in U.S. Supreme Court and we may lose SOH completly.  Plus The roll back may actually increase later on property taxes.  Not sure about that one.

 Anyway, your thoughts on what I mentioned esp. division between the realtors ?

John
9:04pm • #2
122,437 Points Localism Sponsor

I agree with a lot of what you've written and I too will vote NO.  But I'd like to point out two things I don't agree with:  

1.  I don't think SOH was a terrible idea when created.  It so happens that prices skyrocketed and a tremendous inequity was created, however I doubt that was anticipated.  The error (IMO) is the 3% max.  Had it been around 6 or 7%, I believe it would have been much better.  Yes an inequality would still exist but that gap would partially close in down cycles.

2.  Your example using 2000 prices does not quite work.  If values increase by at least 3% per year since 2000 (which they have) then after 7 years, you're paying 2000 prices + 23%, not simply 2000 prices.  Just an FYI.

 

11:55pm • #3
JAN
21
2008
1 Featured Post Localism Sponsor

The Save Our Homes amendment was intended to keep the elderly from losing their homes due to rising taxes, while they had limited income.  The result is far from that.  It should never have been done as an Amendment, but rather some legislation which offered tax breaks to low-income residents. 

Obviously, if prices increased 3-5%, and all residents payed the same tax burden, we would not be in this position.  It is a matter of discrimination between longterm and short-term homeowners and there is absolutely no one who can justify that.  It is surprising that it hasn't hit the court system, but I expect it will.

On the issue of the division of realtors...most realtors are only concerned with making a few more sales this year with the portability option and don't really care about the fact that this is NOT a solution to the tax problem and, if it passes, there will be little incentive to fix the real issues.  There was a recent editorial that said "Amendment 1 is treating the fever, not the illness..." and that is exactly right.  It's a bad band-aid.  I wish people would vote to do the "right thing", not the "easy thing".

I have certainly gotten the attention of FAR, and it's president, Nancy Riley.  You can read about that in one of my previous articles....it was one of my highest readership days!   

7:32am • #4
I'm definitely voting NO!  And to slap us in the face again, Charlie Crist replied "I'm not afraid of the people" when asked what he would do if the amendment failed to pass.  The way I look at it Crist is our employee and should be afraid of us.  We pay his salary and we allow him, for the moment, to be governor.  Come election time Mr. Crist just may be looking for another job.
9:46pm • #5
JAN
22
2008

I have heard from several "inside" sources in the Republican party that Charlie Crist was hoping to get on the VP ticket by getting this amendment passed, since Florida is such a key player in the Presidential election.  He is clearly not focused on the RIGHT plan, but just something to get him a little push to Washington.  We need to stay focused on the right solution and VOTE OUT all of the legislators who don't do the same.  I also know that Republican legislators  have been TOLD to publicly support the Governor's plan, or else...

Realtors who are voting "no" need to speak up.  I heard that only 47% of Floridians are voting yes, in the latest poll, but all of those "Vote Yes" commercials are misleading and speak to the lowest common denominator.  All they hear is "tax cut".  I get so frustrated with people who choose not to be informed...believe the propaganda ...and head to the polls.  

Jackie Colson-Miller
8:06am • #6
JAN
25
2008
597,151 Points 45 Featured Posts Outside Blog

Jackie - I voted No by absentee ballot before I headed to Hawaii to teach this CLHMS class and attend Sellabration. Started to comment on why, but it got long, so I wrote my own post and linked to this one.

9:19am • #7
1 Featured Post

If the people would actually take the time to sit down long enough and review this ammendment and how it will NOT be in the best interest of the people for the State of Florida, I think more NO votes would be forthcoming.

I have heard people say that it is wonderful that the homestead is now going to be doubled from $25,000 to $50,000. They are missing some ingredients on that factor and we have all been misled purposely on that. It is not an automatic doubling. What "fine" work our State Association and Legislature has done to mislead us.

I read your other post and your comment to Nancy Riley. I'm not surprised she took that stance, as she does not want anyone who is against this to be heard. I wrote a scathing email to FAR's VP telling him how dare he speak for me on such a critical issue. I have my own voice and DO NOT agree with this ammendment! I will be voting NO. We need to force the legislature to do their job and correct what has been done.

6:33pm • #8
JAN
26
2008
I am with you, Chris.  I am so annoyed that FAR spoke out without polling it's members and Nancy made a number a comments about me that I won't even print! I guess you must have to be "brainless" or "a FAR robot" these days to be licensed in Florida. 
Jackie Colson-Miller
7:54am • #9
JAN
27
2008
210,996 Points 14 Featured Posts

those who disagree with you are not unethical. you seem to make assumptions for their rational. increased sales not only generates Realtor income there is other accompaning tax revenues.

i'm from new hampshire originally and we lived on consumption taxes. i'm very much in favor of these.

cut backs are absolutely needed. governments get even more reckless with spending when revenues are freely flowing without truly being monitored as they were just a few years back.

it's easy for marco or any other politician to stand up now and say we need this, that, and the other thing, BUT if they could have gotten it passed why wasn't it done in the first place.

6:33am • #10
A consumption tax, hmmm, that sounds like the Fair Tax, not a bad way to go.  
7:09pm • #11
JAN
30
2008
122,437 Points Localism Sponsor
It appears that the LCDs raised the 47% up to around 64%.  More proof that we need to spend more on education?
10:53pm • #12

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Jackie Colson-Miller,Tampa Real Estate www.RealEstateSizzle.com

Tampa, FL

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