Current Sarasota Real Estate News

Florida House Advances Property Tax Reduction Plan

Posted July 05, 2007

    A Florida Republican plan to cut local property taxes by nearly $6 billion cleared a House panel with Democrats complaining the bill was being railroaded. The partisan 10-5 vote in the Government Efficiency and Accountability Council came one day after the Legislature opened its annual session with its Republican leadership urging lawmakers to focus on problem-solving rather than politics.  Democrats objected to the quick vote, not necessarily the goals of the Republican bill, because its ramifications are not yet fully known. City and county lobbyists also objected saying the tax relief will force local service cuts.  House Democrats are developing their own a property tax reform plan, but neither party has yet offered one in the Florida Senate.

    The first half of a Republican plan to cut local property taxes by nearly $5.8 billion cleared a House panel Wednesday on a party-line vote, with Democrats complaining it was being railroaded through the chamber.

    The Republican sponsored bill would roll property taxes back to their Jan. 1, 2001, level but allow annual increases to account for population growth and inflation.  The rollback would affect all levels of local property taxes, except those levied by school districts.  Average statewide savings are expected to be about 19 percent, but actual amounts would vary depending on the kind of property a taxpayer owns and where.

    Average statewide savings are expected to be 19 percent, but actual amounts would depend on the kind of property a taxpayer owns and where.   According to a Sarasota Herald Tribune article, the smallest savings, $433 million, would be for primary homes -- those eligible for homestead exemptions.  Owners of second homes and rental real estate would get $767 million in savings, while businesses would reap the biggest savings, $3.35 billion.  Tax rate reductions also would vary by county and city.

    The second part of the House Republicans' reform package is a proposed constitutional amendment that would require voter approval and supersede the curent proposed bill.  The amendment would abolish property taxes on homesteads and roll them back for other real estate property in the same manner as the current proposed bill.  To offset local government losses, that bill would increase the Florida sales tax from 6 percent to 8.5 percent.  Cities and counties, though, would still face the same $5.8 billion overall loss.

    You may also want to read Sarasota Real Estate: Process for Filing an Appeal of Property Valuation.

      For a permanent home, vacation getaway or an investment property, the Sarasota real estate market, with its recent price correction, is hard to beat.  I invite you to request my free Sarasota Real Estate Package or call me directly at 941-228-2321 or toll-free at my Sarasota RE/MAX Office at 800-966-2334.