Property tax debate in public's hands
Jun 17, 2007
TALLAHASSEE -- Now that the politicians have spoken, Florida's property
tax debate is headed for a seven-month public campaign that could pit
businesses, teachers and firefighters against state legislators and tax
critics.

The Legislature passed one reform Thursday that takes effect now:
providing a tax cut to all property owners in this year's bills and
capping the growth of local governments.

That immediate relief will result in the tax bills delivered in November
reflecting 7 percent budget cuts in Escambia and Santa Rosa counties,
5 percent cuts in Pensacola and Milton, and 3 percent cuts in Gulf Breeze
and Jay.

But the biggest potential payoff for resident homeowners will be decided
Jan. 29 when voters statewide will be asked to eliminate the Save Our Homes
law that limits property tax increases to 3 percent a year. Instead, if
approved, it will be replaced by a super homestead exemption.

"People are going to vote on whether it helps or hurts them," said Steve
Reecy, a Tallahassee engineer who also owns six townhomes he rents out.

While the tax cut and cap lawmakers imposed on local governments this
fall will save him money, he's noncommittal about the amendment -- which
would direct billions of dollars in breaks to help homesteaders alone.

"I own a house, so I'll benefit," he says. "But I think it will really
hurt the people who are tenants."

Republican supporters of the plan acknowledge it will be hard to convince
60 percent of the electorate to pass the amendment if teachers and law
enforcement officers barnstorm against it.

Ballooning the amount of home value that could be exempted from the tax
rolls will mean billions of dollars less for public schools if the
amendment passes. Lawmakers are asking voters to trust that they'll
replace those dollars down the road.

"The voters are going to have to say 'We trust the Legislature to do
the right thing,' " said Sen. Burt Saunders, R-Naples. "The teachers,
firefighters, policeman, they have incredible sway with the voters.

"If they don't have a level of comfort, they will be out in force and
it will be very difficult to pass."

Democrats complained bitterly that Florida was taking an awful risk.

If the economy sours or a natural disaster strikes, lawmakers could
easily be forced to forgo that promise, they contend.

Published - June, 17, 2007



Aaron Deslatte
News Journal capital bureau
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