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...