Political stunts aren't tax reform
A Times EditorialPublished December 13, 2006
Just the words "tax revolt" are enough to send most Florida lawmakers into a panic attack, so the appointed Property Tax Reform Committee is supposed to provide a steady hand. But as the group prepares Friday to complete its preliminary report, it is actually considering a recommendation that all property taxes simply be abolished.
This is adult supervision?
Eliminating the property tax would require the state to raise its sales tax from the current 6 cents on the dollar to 13.5 cents, making an already regressive system intolerable. Yet Donna Arduin, a committee member who was the former budget director for Gov. Jeb Bush, acts as though fairness is a quaint concept. "The property tax system we have now isn't exactly the opiate," she told members, according to published reports. "Let's not just use the old adage 'regressive' and dismiss it."
With such flippant discourse, the committee last month agreed to keep the issue alive and undermined their credibility as a competent, realistic panel.
The committee was appointed by Bush to review concerns about rising property tax bills, and its members have diligently listened to taxpayers in a series of meetings throughout the state. The work is proceeding at the same time as that of the Department of Revenue, which the Legislature has ordered to thoroughly analyze the impact of property tax exemptions and rates.
The biggest current problem is that a tax exemption called Save Our Homes, passed by voters in 1992, has created enormous tax inequities between homeowners. The constitutional amendment artificially limits the taxable value for those who stay put in their homes, which has led some homeowners who have moved to pay double or triple the amount of their neighbor. Save Our Homes also has shifted the tax burden to all other property owners, including the owners of businesses and investment properties. This year, the property rate statewide could have been reduced an average of 20 percent if Save Our Homes were not in effect.
The committee is looking at a whole of range tax issues, including the inequities. But it needs to be careful to avoid getting caught up in the politics of the debate. Lawmakers undoubtedly will be looking for a quick fix during this spring's regular session, but quick fixes and bumper-sticker solutions are mostly to blame for the current predicament.
To his credit, Hillsborough Property Appraiser Rob Turner, a member of the committee, has asked to take the long view. He wants to do something that politicians would consider heresy but amounts to sound tax policy. He would ultimately do away with Save Our Homes with the promise that no current owners would be affected and that the standard $25,000 homestead exemption would be increased.
Turner's idea is still in its formative stages, but it is worth serious consideration and reflects a reasonable attempt at a long-range, comprehensive approach. It is precisely the kind of antidote to political pandering that an appointed committee is in the best position to recommend. On the other hand, suggesting Florida abolish property taxes and drastically raise the state sales tax would be just another political stunt that should be beneath a committee intent on producing recommendations that are thoughtful and reasonable.