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Forum: To fix tax pain, cut spending

Residents blame local governments for their property tax problems.

By ALEX LEARY
Published February 16, 2007

	Linda Hayward of Brooksville speaks during Thursday's hearing. "Local governments have become incredibly greedy,'' she says.
[Times photo: John Pendygraft]

TAMPA - The anger burned slow during a property tax hearing Thursday night at Hillsborough Community College. Few shouted or pounded their fists. No one taunted the lawmakers before them.

But speaker after speaker, dozens in all, delivered a central, unmistakable point: Government spending is out of control.

"Please don't just patch the system," implored Linda Hayward, 48, of Brooksville. "The real problem is local governments have become incredibly greedy and stolen our money."

Her words brought applause from the more than 200 west-central Florida residents attending the hearing, which was called by the Legislature to collect ideas to address soaring property taxes.

"We need to tell the local governments that are getting fat off our backs that they can't have our money any more," said David McKalip of St. Petersburg, organizer of the citizen group Cut Taxes Now, which advocates a spending cap on government.

In the past six years, property tax levies have doubled to $30-billion, far outpacing population and personal income growth.

"We all thank Gov. (Charlie) Crist for starting the debate," McKalip said. "But it's not enough."

Crist recently proposed doubling the homestead exemption to $50,000, making the 3 percent Save Our Homes cap on annual assessments transferable to new homes and extending the cap to businesses, second homes and other nonhomesteaded property.

Those ideas have many supporters and would save them billions of dollars. People who benefit from Save Our Homes say they feel trapped in their homes because moving to even a smaller dwelling could result in substantially higher taxes. Portability would help them greatly.

But each of Crist's proposals has the downside of perpetuating inequities or creating new ones. Portability, for example, wouldn't address the tax rates for new Florida residents.

Many view a cap on government spending or taxes as a fairer solution.

"The Legislature must act because local officials cannot do it and will not do it," said Carl Mathews, 72, of South Tampa.

This month, Hillsborough County became the first government entity to agree to rein in spending with a cap. Hillsborough commissioners voted to tie their own yearly spending increases to population growth and inflation.

Few other cities and counties are expected to follow Hillsborough's example voluntarily.

Sen. Mike Haridopolos, R-Melbourne, said the government cap has been a major theme at other tax hearings across the state.

"Governments need to go on a diet," Haridopolos said.

Manatee County Commissioner Jane von Hahmann defended local spending, saying it is often driven by state mandates, including a need to meet the communities legal needs with a new judicial center.

"We didn't frivolously spend those dollars," she said.

Though the emotion was generally restrained, people who turned out carried plenty of pain.

Maggie Jackson said she was recently divorced and was forced to move. To keep her daughter, Jennica, in the same school district, she found a home in Odessa.

Doing so resulted in an 80 percent higher tax bill, she said. Now Jackson is not sure she can stay. "I lost my cap. It's just not fair," Jackson said, on the verge of tears.

David Miesch of Hernando County supported Crist's idea of portability. Miesch said two years ago the state took his west Tampa home through eminent domain to expand Interstate 275.

He was paid for his home but, in moving, lost his cap and now pays two-thirds more in property taxes for a smaller place. "I'm extremely bitter," Miesch said.

Jean and Jim Overby, 20-year residents of Treasure Island, said they want to move to a smaller home but cannot because the taxes would be too much due to the loss of Save Our Homes protection.

"It's actually made us think seriously about moving back to Virginia," said Jim Overby, 66.

They, too, would benefit from portability. But that's not the answer to the problem, Overby said, adding he would prefer a standard assessment for all property.

Pierre Mathurin, 45, of Tampa was one of few voices calling for caution. He said rushing to cut taxes in the short term could cause long-term problems, including cutbacks in essential local services.

Taxes are necessary, he said.

As he returned to his seat, a few people quietly booed him. "Pay my tax bill," a woman called out.

It was a rare break from decorum in a meeting that lasted four hours.

State Sen. Victor Crist, R-Tampa, said the forum would last as long as it took. He ordered pizza for the panel of lawmakers, "so we don't pass out."

Someone in the crowd yelled, "Victor, did you order some for us?"

No, he said.

"I only had 60 bucks in my pocket. I had to pay my taxes."

[Last modified February 16, 2007, 00:51:42]