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Politics

Plan would end tax on homestead property

By ALEX LEARY
Published February 20, 2007


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TALLAHASSEE - House Republicans are developing a proposal to eliminate property taxes for all homesteads while increasing the sales tax by a few pennies to make up the difference.

The plan, which has quietly gained favor among House leaders in recent days but lacks detail and has yet to be announced, also calls for capping property taxes on businesses, second homes and other nonhomestead property.

The cap would likely be tied to population growth and inflation.

"Everyone's pretty excited about it," Rep. Anitere Flores, R-Miami, said after emerging from a property tax summit in the House on Monday afternoon.

Property taxes promise to be the most challenging issue in the Legislature's upcoming session, in part because of the inequities in the current system, which favors long-term homeowners over new residents while pushing more of the burden on nonhomestead property.

An increasing number of lawmakers feel the best remedy is to simply get rid of property taxes homestead owners pay to schools, cities, counties and special taxing districts. The idea is contained in House Speaker Marco Rubio's book 100 Innovative Ideas for Florida's Future.

Doing so would require a voter-approved change to the Florida Constitution.

To offset lost revenue, the sales tax would be bumped up nearly 3 cents. The current sales tax is 6 cents per dollar, although some local governments have gotten voter approval for slightly higher amounts.

Each cent increase generates about $3.75-billion.

"I don't think it's a tax increase; it's a tax shift," said Rep. Carlos Lopez-Cantera, R-Miami.

But an increased sales tax could hurt businesses in North Florida, where shoppers could go to Georgia or another state. Also, sales taxes hurt the poor more than other income groups. Vacationers, too, would pay more to visit Florida.

"The devil will be in the details," said Sarah Bleakley, a lobbyist for the Florida Association of Counties.

[Last modified February 20, 2007, 05:41:21]


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Comments on this article
by Nancy 05/09/07 10:22 AM
I am the widow of a veteran who was 100% service-connected disabled when he died; he died of the disability. SC gives me 100% property tax relief. I would like to move to Florida - would this law include the widows?
by linda 05/04/07 08:39 PM
Someone is finally using their brains. Watch prop.values rise quickly again as American and Canadian snowbirds migrate south again and spend thier money here instead of Arizona and N. Mexico.
by Shadow 04/20/07 11:07 PM
We 100% permanent and totally disabled veterans are exempt from property taxes, and barely get enough to live on from the Federal Government in service-connected compensation - how will we pay the additional sales taxes?
by Ramon 04/13/07 07:04 PM
The greatest, fairest idea ever! I've been paying for this for a long time> Florida will be the The Land of the Free!!free from trax bondage!!!Hoorayyy!
by Robert 03/27/07 06:07 AM
I believe it is about time.No one should ever be taxed out of their property.
by Nick 03/26/07 06:04 PM
Florida will have an influx of millions of people who will register to vote and vote out all the deadbeats. retribution can be fair and just also.
by joe 03/18/07 02:48 PM
awesome were do I sign?
by Maria 03/11/07 11:46 AM
I'm all for it. If you can't afford to buy luxury items don't buy it, but paying R.E taxes is not an option.
by carmen 03/08/07 06:03 AM
If this passes, we will finally realize "The American Dream, true ownership of your home"! As we have it now, the goverment owns your home even after you get it paid off, you never really own it! I love it !
by FB 03/07/07 07:23 PM
When is the big day? This is something we should mark on our calendars, but I can't seem to find the vote date anywhere. Anyone know when it it?
by Dexter 03/06/07 12:00 AM
What is needed in getting a sometype of tax revolt / Petition drive to lower NOW the Property taxes and the Homeowner Insurance rates in Florida? Ex Community Organizer/ Activist from New York
by Phil 03/04/07 01:12 PM
This is a great idea, get it into action! It will make owning a home more affordable. We have a modest old home and our taxes are killing us! For the renters out there, you will finally be able to buy! It's only $9.00 sales ter per $100. Worth it!!!!
by WatchYourWallet 03/01/07 12:54 AM
Believe it or not, a person with a house worth $20mln probably only "consumes" 3-4 times as much as a person with a house worth $200k yet he is currently paying 100 times more in RE tax.A switch away from RE tax to sales tax benefits him the most.
by RealityCheck 03/01/07 12:38 AM
This is another Republican scam. The fact is that replacing RE taxes with sales taxes merely alleviates wealthy people from an onerous tax burden and spreads the difference out over the masses. Believe it or not, a person worth ....
by Bob 02/28/07 10:23 PM
This is a great idea. Florida will be the biggest boom state of all time. Lets make this happen. I know about three thousand people in my city who would vote yes. This bill would pass by 90 percent. Lets make this happen.
by jc 02/28/07 09:38 AM
Yes, vacationers would pay more also, but where else are they going to go to get sand and sea with tropical weather, and all of the top services that we offer? A sales tax makes EVERYONE pay for the services we enjoy.
by jc 02/28/07 09:32 AM
5. Sales tax must NEVER be applied to grocery items as this is a real injury to low income households. 6. The whole key is controling spending by govt, including salary controls..can you vote yourself a raise or retirement plan?
by jc 02/28/07 09:28 AM
1. A sales tax is completely fair, wealthy persons spend far more and thus pay more taxes. 2. Renters will pay LESS because their landlord will not have to pay exorbitant non homestead taxes on their rental. more on next commentary
by j.c 02/28/07 09:26 AM
3. Real estate will begin to sell again and yes, another real estate boom could happen...which brings in more taxpayers. 4. Why should a homeowner with an expensive home pay more taxes than others? They do not use any more govt services than you.
by Joe 02/25/07 11:24 PM
This will create a boom in realeastate and land value. Retiries would flock to Florida and finally the middel class can stop supporting the dead beats who dont want to work, and use our tax money.So when they go out and buy those shine new rims Bamm.
by bob 02/24/07 03:36 PM
Don't complain about the rich people not paying. Their the ones that pay most of our wages so we can afford a good life, own a home, drive a car and eat. They also will be paying a higher sales tax too!Stop complaining,their paying for your free ride
by bob 02/24/07 03:29 PM
The complaint by renters that it's bad news for them is bogus, They are getting a free ride for everything the property owners pay for. How many renters have children that use public schools, ride school buses, use public library's, public roads etc.
by bob 02/24/07 03:18 PM
Absolutely the best way to go.Charge the sales tax, those that don't pay property tax but use all of the facilities and amenities that are furnished with this property tax money, will now pay there share of the taxes needed to run our city and county
by Mark 02/23/07 10:41 AM
This is a terrible idea.. the formula: higher land prices higher sales tax low Florida rate = elevated homeless rate and exodus from Florida. Bad for business and tourist.
by Jeff 02/23/07 01:17 AM
This has got to be the best news I heard in a long time. WOW! Finally I dont have to live paycheck to paycheck a true tax relief
by slade 02/22/07 09:52 PM
THIS WOULD BE AWESOME!!! PEOPLE COULD ONCE AGAIN AFFORD TO MOVE TO FLORIDA AND HAVE A HOME!
by chuck 02/22/07 12:43 PM
Great idea, as the sales tax gets everybody that use the services, including tourists.Finally a tax that we can control vs. government, yahoo. Don't want to pay tax, you don't have to. The more one spends the more one pays.
by Sylina 02/22/07 09:49 AM
Great Idea...bring it On!!!!!
by Rick 02/21/07 11:08 PM
Yes, let the voters decide. A truly innovative idea that for the first time makes sense and distributes the tax burden evenly. More lower and middle income families would be able to afford homes in our State.
by Guy 02/21/07 11:02 PM
This is a great idea!! Each person could control their own taxes by controling their own spending. It will help those who struggle with monthly payments. Since it only applies to homesteads this will tax speculators and give real homeowners a break.
by Bob 02/21/07 09:24 PM
Well, we could start by rolling back the pay in House Speaker Rubio's office back to the 2000-2001 level instead of rolling back local government expenses for police officers, firemen, and teachers. Do it Rubio. Cut YOUR staff numbers and expenses.
by Jim 02/21/07 11:33 AM
To Sam: People who previously could not afford to buy a home due to property tax increaese will now be able to. Homestead property would not pay property tax. It helps lower income home ownership!
by Jim 02/21/07 10:40 AM
To KB: Sales Tax would now be itemized on your Federal Return instead of primary home property tax. To Sam: My home has increaed significantly in value. Our income will not keep up with current property taxes without 3% cap.
by Jake 02/21/07 09:06 AM
The plan would make all land in Florida a real bargain for speculators to hoard for future development without paying any taxes on it and drive the price for land higher. This is pure Republicanism at its worst. Concentrate wealth into fewer hands.
by Ima Fedup 02/21/07 06:00 AM
Why not just remove all exemptions, do away with SOH, limit government spending to 5% increase with a provision for a super majority vote to increase the budget for any unexpected needs
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