State: Crist finesses property tax cut

TALLAHASSEE - Gov. Charlie Crist will shield Florida school districts from the full impact of his proposed property tax cuts, but he denied Wednesday that he was backpedaling on tax relief.

"I don't think so," Crist said. "My commitment is to want to make sure we reduce property taxes significantly."

Crist initially backed a doubling of the Florida homestead exemption to $50,000, subject to approval by each county's voters. He said his plan had the potential to lower property taxes by $1-billion the first year.

Under his original proposal, the bigger exemption would have applied equally to the taxes collected for all local governments, including school districts. The exemption has been at $25,000 for the past 25 years.

But on Wednesday, Crist acknowledged that he wants to exempt school district taxes from the higher homestead exemption. The result would be that homeowners would have one taxable value for their city and county property tax calculations, and another taxable home value, a higher one, for their school district taxes.

The larger exemption would give homeowners a property tax cut on county and city taxes but not school taxes, which can make up at least 30 percent of the total property tax bill.

School districts and local government officials have argued against the Crist tax cut proposals, saying they cannot afford to lose so much in property tax money. School districts say they are more dependent on property taxes than counties and cities, which can levy a variety of fees and assessments to pay for basic services.

Crist's support for deep tax cuts appeared to have put him at odds with his proclaimed support for public education.

"I'm an education advocate. I'd rather not see their funding be reduced," Crist said Wednesday. "So I think that would be probably the right thing to do."

Crist's first budget calls for a $1.3-billion boost in education spending with more money for class size reduction, reading coaches and 10 percent raises for outstanding teachers.

In pushing for property tax cuts as a candidate, Crist often cited two anecdotal examples of what he called government waste. Both involved schools.

They were Hillsborough County's high costs for land acquisition for new schools, and Broward County's high-rise school administration headquarters dubbed the "Crystal Palace" by critics.

In practical terms the Crist proposal would work like this. The owner of a homesteaded house valued at $200,000 currently pays taxes on $175,000 because $25,000 is exempt. If the homestead exemption is doubled as Crist now proposes, that homeowner would pay city and county taxes on $150,000 in home value, but would still pay school taxes on $175,000 in home value.

The Florida School Boards Association said it has not calculated the effect of an expanded homestead exemption on all 67 school districts.

But the Florida Association of Counties has said the effect of the larger homestead exemption on county government budgets would be $608-million based on the most recent tax roll.

School officials, who last year threatened to file a lawsuit to block the doubling of the homestead exemption, voiced relief at Crist's decision.

"If it were to go through, there wouldn't be any teacher salary increases," said Wayne Blanton of the Florida School Boards Association.

But educators remain alarmed by the much greater financial impact of Crist's other two property tax proposals: allowing people to transfer the annual 3 percent Save Our Homes tax cap to a new home and extending the cap to businesses, vacation homes and nonhomesteaded properties.

Still, Crist's decision on the homestead exemption may mean that the cohesive public school lobby may be less ardent in its opposition to property tax cuts.

Crist dismissed warnings by local governments that less property tax revenue would force layoffs of police and firefighters.

"Reduce government waste," Crist said. "The people are smart. They understand what's going on."

Times staff writers Alex Leary and Jennifer Liberto contributed to this report. Steve Bousquet can be reached at bousquet@sptimes.com or at 850 224-7263.

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by dave	05/19/07 12:17 AM
I work at a local fire department in Manatee County..Manatee couny is a fire district and if prperty taxes get cut before 2005 my department will lay off over 40% of it's online firefighters and close stations. That = a much longer response time.

by George	04/26/07 12:57 PM
I've been a gov't. employee for 18 years, live in the same 3/2 $78K (currently) home and pay neary $700/yr in property taxes. With $2K/mo expenses @ $27K/year salary, why would a tax increase on my food, utilities, etc. be beneficial to me?

by Dave	04/05/07 07:22 PM
there needs to be an exemption on Specialty Districts. Collier County will need to cut their budget back to where it was in 2001. which means layoffs, including my job as a firefighter.

by al	03/26/07 09:26 AM
cut property tax altogether and rise sales tax,no property will bring people back

by PJ	03/12/07 07:35 PM
The counties are receiving a windfall based on the increase in valuations from the now popped housing price bubble. Yes we need relief and the counties need to tighten their belts instead of feeding like hogs at the trough!

by Jay	03/11/07 08:50 PM
These high property taxes are driving people away. No one can afford to live here anymore. I see it in my own neighborhood.

by Blue Moon	02/24/07 08:42 PM
Protect homeowner & renters,get rid of all Property Taxes.Sm Higher sales tax will be enough tax to provide basic services really needed.Put cap on WASTEFUL LOCAL GOVERNMENT OUT-Of-CONTROL SPENDING PROBLEM.Tired of being legally robbed by Local Govt.

by Eugene	02/24/07 01:05 AM
We are a mobile country. Americans move every 7 years, on average. Tax portability is essential. If we cut property taxes altogether, everyone would benefit. The proposed increase in sales tax will be more than offset by RE tax savings.

by Steve	02/22/07 11:46 AM
In response to Sal - Many people own non homesteded property, not just the rich. You can buy a rental property with relatively little down. Its another form of investment that is taxed when sold. I doesn't need to be unfairly taxed relative to others

by John	02/18/07 07:44 PM
Retired second homeowners, and their visitors, increase tourism. The property tax discriminates against us - the new proposals increase the differential. Owners selling up will have a negative impact on tourism, the economy & real estate prices.

by Michelle	02/11/07 07:39 PM
Lisa (02/08/07) is right. I am one of those so-called "rich 2nd-home owners" who is paying huge tax amounts.I am British and retired on a fixed income.I was going to retire to Florida. Now I can't instead I have to sell. The taxes have overwhelmed me

by Georgia	02/09/07 12:28 AM
I have paid homeowner taxes in the state of FL since 1963. I believe that more than qualifies me for the lower SOH rate now. Why does someone who just moves here think I should pay more. I have paid for all his amenities for 43 years. Enough said.

by Pat	02/08/07 11:25 PM
If Pete's house is currently worth $200,000 and he has lived there 25 years and if mine is worth $200,000, but I have only lived in it 1 year, should I pay substantially more than Pete...or shoudl we pay the same amount? SOH unfairly shifts burden.

by Mike	02/08/07 11:18 PM
There should be NO exemptions and NO SOH cap. Why? Because everybody's taxes would go up and then everybody would have an interest in demanding gov't to control spending. Right now if your taxes are capped you have less of an incentive to fight.

by Bob	02/08/07 11:18 PM
SOH has unfairly shifted the burden of property taxes from long term residents to newcomers, commercial property owners and snowbirds. What you paid for your property decades ago doesnt matter. Its current value is the basis for property taxes.

by Tom	02/08/07 09:52 PM
Lets stay with the original proposal.No group wants an income cut. If then this proves to be too severe we should consider an alternative form of increasing their revenue.

by Pete	02/08/07 09:39 PM
I brought my home in 1983 for 38,500. My taxes always have been low (25.00 pr year), but by Bobs words I'm not paying my fair share. You might have paid well over $200,000 for your home being same size only 20 years later! The cap is the answer.

by Kathy	02/08/07 09:32 PM
What Bob said about his neighborpaying less than his share for years. Is so unfair! I know many folks who pay very little on their taxes cause they have lived there for over 25 years. Why should they have to pay more?

by Mary	02/08/07 05:42 PM
How about raising the tax on people that have lived here for 25 years or more and are enjoying all the amenaties of the "newbies" who have paid taxes to supply. Most pay under $1000.

by Bob	02/08/07 02:14 PM
In response to Mike, my neighbor is a longterm homeowner with SOH paying $6500 per year in property taxes. I pay $10,100. Our houses are identical. And now he should get even more of a tax break? He has been paying less than his share for years.

by Tom	02/08/07 01:27 PM
Why is it that education spending never, never decreases? It's time for everyone to take another look at our largest "sacred cow" and its enormous expense. We can begin by understanding that $ do not equal education.

by Jayson	02/08/07 12:40 PM
I'm not sure if i'm even for any tax relief, he says local gov't needs to cut waste,what he means is that he wants them to cut social services like he and his buddy Jeb have done.

by Jim	02/08/07 12:33 PM
From 2004 to 2006, Pinellas County increased its budget/taxes 60% or nearly $300 million! The county population is nearly flat during this same time period. I concur with the govenor we need to reduce the waste!!!

by Colleen	02/08/07 12:03 PM
I think it is interesting that the governor is telling the counties to cut government waste. Maybe it would be better if he cut waste at the state level first then the counties may follow suit.

by Mike	02/08/07 11:01 AM
In response to Bob, The people who are long term SOH homeowners are long term residents and have paid far more in taxes over the years than the people who have recently moved here.

by Lisa	02/08/07 10:21 AM
The tax system is broken, it needs fixing. The assumption that "rich" people own 2nd homes in Florida is simply not true. Middle class people who have purchased with the intent to move there are being overwelmed with tax increases. Wake up!

by Jason	02/08/07 10:09 AM
Pinellas did just fine not too many years ago with much less property tax money. It took an outcry to have the county lower the taxes. Let them make due like everybody else does.

by Tony	02/08/07 10:02 AM
Sal & Michael: Property tax rates(millage)have gone down in the bay area. Values have gone up. Non-homesteaded properties are occupied by renters, who often can't purchase a home. So landlords are having to pass on property tax/insurance increases.

by Bob	02/08/07 10:00 AM
Additional homestead exemption for all is not the answer. This proposal gives still more property tax breaks to longterm SOH homeowners who are paying far less than their fair share of the property tax burden. Equal taxes is the only fair solution.

by Holly	02/08/07 09:41 AM
Raising the homestead exemption to $50,000 only takes more off the tax rolls. I say, scrape the current tax plan and come up with something that makes sense for everyone!

by David	02/08/07 09:32 AM
I'm a education advocate also that's why we voted in the lottery, Please explain that switcheroo again. Also Please tell us what has happened to the windfall tax income of the last three years. Knowing where that money went might help us underatand.

by Mikey	02/08/07 08:53 AM
"My commitment is to WANT to make sure we reduce RE taxes says Charlie! Well, my commitment is to WANT to lose 30LBS.Are we going to have to watch every WORD this guy says like we did with Clinton?? Define WANT for us Charlie

by Sarah	02/08/07 08:51 AM
Instead of doubling the HSEx to 50K,do away with the HS on the first $25k but apply it to the 2nd $25K; that way you bring in all the mobilehomes and other less valuable properties.Everyone gets a break but all pay no matter the value of their home.

by Jim	02/08/07 08:43 AM
The most important item is the retaining the 3% cap. This is critical for the real-estate market to rebound. If I were to buy an equivalent home today, I would be paying $4000 more taxes per year. So, most people simply don't move unless they have to

by Sal	02/08/07 08:05 AM
Keeping school funding on track is fine by me but I don't like giving SOH to non "homes". I could be pursuaded to supporte SOH for business but not non-homesteaded property that is a break for the RICH! How many people have non-homesteaded property

Politics

Crist finesses property tax cut