In addition to the Presidential preference primary on January 29, Florida voters will be asked to vote on Amendment 1 which would raise the property tax homestead exemption from twenty five thousand to fifty thousand dollars. The amendment also allows homeowners to transfer their present homestead exemption if they sell their home. This is a very important issue as the cost of home ownership and property taxes have skyrocketed in Florida over the past ten years. Working families are simply unable to afford home ownership or losing their property to foreclosure.
Even though real estate prices have declined slightly in Florida, a modest home purchased ten years ago for 100K may be still worth two to three times that amount today. Thanks to the Same Our Homes amendment passed in 1992, Floridians with resident homestead exemptions on their property are limited to a three percent per year increase in property taxes. The problem is that sometimes our circumstances change and we need to sell our homes and move.
Even though real estate prices have declined slightly in Florida, a modest home purchased ten years ago for 100K may be still worth two to three times that amount today. Thanks to the Same Our Homes amendment passed in 1992, Floridians with resident homestead exemptions on their property are limited to a three percent per year increase in property taxes. The problem is that sometimes our circumstances change and we need to sell our homes and move.
A working or middle class family cannot afford to sell their house and move in Florida under the present circumstances. Just moving to the same size residence in a similar kind of neighborhood across town might mean paying ten times as much in property taxes. A senior citizen selling a three bedroom house and moving to a one bedroom condo will end up paying more in property taxes. If you live in a starter home or a condo and desire a larger home - forget it unless you win the lottery. The situation is just intolerable. Important people like teachers, police officers, firefighters and nurses cannot afford to buy homes in many areas of Florida. Unless we have another Great Depression, the housing market is not going to fall enough to remedy this problem.
Over the past few years, local governments have reaped a tremendous windfall in revenue thanks to the housing boom and skyrocketing tax assessments. Local political hacks like Jacksonville Mayor John Peyton are using scare tactics with claims that police officers and firefighters will be laid off Amendment 1 passes. Public employee unions have bought into these arguments even though their members would benefit from the passage of Amendment 1. One way for local governments to make up the lost revenue is to stop giving tax breaks to big business and impose impact fees on developers.
Over the past few years, local governments have reaped a tremendous windfall in revenue thanks to the housing boom and skyrocketing tax assessments. Local political hacks like Jacksonville Mayor John Peyton are using scare tactics with claims that police officers and firefighters will be laid off Amendment 1 passes. Public employee unions have bought into these arguments even though their members would benefit from the passage of Amendment 1. One way for local governments to make up the lost revenue is to stop giving tax breaks to big business and impose impact fees on developers.
I am not convinced that our local governments cannot find ways to operate with greater efficiency. While I am far from a knee-jerk anti-government type and certainly support labor unions, we have to recognize that our working families simply must have tax relief. I happen to share the concerns that many opponents of Amendment 1 have about possible reductions in services but can also see how the American Dream of property ownership is slipping away from Florida's working families. Our working and middle class families need property tax relief now. Unfortunately, many of our elected officials have forgotten that government exists for the people rather than the other way around.
Many of the same arguments used in opposition to Amendment 1 were similarly raised against the Save Our Homes amendment in 1992. The sky didn't fall after Save Our Homes and passed and it will not happen once Amendment 1 is approved.
The main force behind Amendment 1 is Florida Governor Charlie Crist. As a Democrat, I don't generally have a lot of praise for Republican politicians but Charlie Crist's efforts for tax relief are worthy of applause. Many Democratic elected officials could learn a thing or two from Governor Charlie Crist. There is little doubt that Crist's populism, moderate approach to social issues, tough stand on crime and minimal partisanship could make an effective platform for Democrats seeking the Statehouse in a number of other states. Another good role model for Democrats at the Statehouse is our party's Arkansas Governor Mike Beebe who successfully lowered sales taxes on groceries which certainly benefits working families.
The main force behind Amendment 1 is Florida Governor Charlie Crist. As a Democrat, I don't generally have a lot of praise for Republican politicians but Charlie Crist's efforts for tax relief are worthy of applause. Many Democratic elected officials could learn a thing or two from Governor Charlie Crist. There is little doubt that Crist's populism, moderate approach to social issues, tough stand on crime and minimal partisanship could make an effective platform for Democrats seeking the Statehouse in a number of other states. Another good role model for Democrats at the Statehouse is our party's Arkansas Governor Mike Beebe who successfully lowered sales taxes on groceries which certainly benefits working families.
I urge all Floridians to vote for Amendment 1 on January 29.
3 comments:
I respect that Florida’s working families need some help, I am a member of a working family in Florida. Amendment 1 does provide $240 in relief for families, thanks to the doubling of the homestead exemption. So we can make 2 more trips to the grocery store should 60% of the voters vote in favor of the amendment. And being able to transfer the accumulated benefits of Save Our Homes to another primary property may take the “golden handcuffs” off of some who wish to move up (or down). But what about the Florida family that I met yesterday? The first time buyers looking in the $250k price range. Should they purchase at that price they’ll face property taxes of around $4500 once their new property is reassessed, OK $4260 should we double the homestead exemption. Meanwhile the folks next door who have lived in that home for 10 years pay 25% of that, for the same services? Where’s the fairness in that? The sky did not fall immediately due to Save Our Homes, but is sure has over the long term. We are left with an inequitable, unfair system of taxation for real estate. Amendment 1 is a band-aid for something that needs minor surgery to say the least. Thanks for your input.
What's going on in Florida sounds like what is going on in North Carolina. Rich Yankees (no offense to anyone from up north)are coming in and building million dollar homes on our scenic beauty and driving up the price of land and property taxes. Many senior citizens,which have lived on the same land for years, have been forced of their lands due to taxes. I pray that Amendment 1 passes for the people of Florida.
It's important to know that a key reason we're having this property tax problem is the result of the inequities and government tax income shifts that came as a result of the Save Our Homes initiative. Save Our Homes has insulated some people too much from natural systemic tax increases while providing no such protection to some others.
This initiative is merely another instance of the legislature passing the buck because it could not come to resolution. It's astounding that a 500-word amendment covering myriad separate items is even being considered. If this gets in, it won't be easy to remove if it brings disaster, mostly because the disasters will be localized.
Every fiscal wonk who has studied this concurs that it is impossible to tell what the results of this measure will mean as far as revenue streams are concerned.
They don't know how many people will sell as a result.
They don't know how many will move from high-real-estate-value areas to low value areas, and then pay almost zero property tax...forever.
They don't know what this will do to the actual pool of buyers from out of state.
They don't know what unintended consequences might come of its various convolutions. For instance, I'm all for having personal property tax relief for up to $25K in business FF&E, but I'd rather see that item stand alone rather than be mashed in with other potentially onerous measures.
I'm concerned that the legslature will force school boards to raise millage rates through the roof to compensate for shortfalls that will likely occur as tax burden inequities spread. It's likely to cripple many small businesses that have significant property holdings.
If saving $270 today is enough for you to overlook potential massive costs and problems in the future, then vote for this.
Yes, there are problems and inequities in Florida property tax laws that must be addressed, but I'm not willing to buy into a crappy solution that can't be undone quickly and easily.
What we need to do is demand that our legislators get over their differences, pass some fixes first, and then come to us with a series of separate one-issue amendments instead of a mess of potential unintended consequences.
I'm dead set against this initiative.
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