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Today's Letters: House plan can add up to savings for taxpayers

By LETTERS TO THE EDITOR
Published February 28, 2007

House Speaker Marco Rubio's plan to abolish the property tax is being falsely criticized, mainly because he is a Republican. Liberals trumpet their old, usual, "Favors the rich," "Trickle down," "Is unfair" hate fantasies.

Before the liberal media, politicians and their lockstep supporters sour the plan, people on restrictive budgets should consider this:

A senior couple on a fixed income, who saved their money and fell for the cheap-living-in-Florida promotions, move here and pay cash to build a small home. It is valued at $130,000 and taxed at $1,800. It is surrounded by much larger, 10-year-old homes valued around $250,000 and owned by higher-income persons. The Save Our Homes cap has them paying only $1,300 in property tax.

The senior couple has income of $25,000. If they spend every nickel of it, about half would be for untaxed food and medicine. They would be paying 6 percent sales tax on approximately $12,500, or $750 annually. Thus their property and sales taxation would total $2,550 as things are now.

The Rubio plan would add 2.5 percent to their sales tax, equalling $312.50, making a total sales tax of $1,062.50. It would eliminate the $1,800 property tax, giving them a savings of $1,487.50 annually.

There also would be comparable savings for those with less or more income, depending on their current property tax and spending.

If saving money is important to you, contact your state politicians and demand that they support the Rubio plan. If not, sit quietly and let the liberals defeat the plan.

Fred Miller, Hernando

Rubio tries to sell tax change Feb. 27, story

Taxing income is fair

An increased sales tax is not the answer to the property tax dilemma. The property tax laws as they stand now are incredibly unfair, and the additional sales tax would be unfair to those who own no property and have not been paying the tax. (You really don't think landlords will lower the rent do you?)

The only fair, across-the-board tax is an income tax set to kick in at, say, $25,000. Most seniors and the poorest of the poor would not be affected, those with higher incomes would pay proportionately. Those who use their homes only part-time would pay an annual tax based on their home state income.

It won't happen because the richest of the rich will ensure it doesn't, and the poorest of the poor will continue to carry the burden.

J. Kay Kelly, Clearwater

Redo assessments

As a homeowner, I'm disturbed by the number of people who seem to want a free ride. Homeowners want their property value to rise so they can make more should they sell, but don't want to pay the associated property taxes. What sense does that make? Under this new tax proposal, homeowners will still be paying taxes, except now it will be an outrageous rate on everyday items, such as laundry detergent and diapers.

I don't think the same people who support this measure would be so gung-ho if legislators proposed instituting a state income tax in place of the property tax. After all, wouldn't that be more fair and truly based on income?

Legislators should look at assessing property taxes better and not at creating a financial crunch for all Florida residents.

Kim Smith, Wesley Chapel

An equitable plan

The Save Our Homes cap on homestead property is working as intended. Folks can stay in their homes essentially without worrying about their taxes outstripping their income, which allows senior citizens and others to enjoy the benefits of home ownership.

However, there is a large disparity between the taxes paid by new homeowners and those paid by their long-time homesteaded neighbors on property that has essentially the same market value. These newer residents are bearing the escalating costs of maintaining the infrastructure.

The issue of portability of the homestead cap has also been discussed as further relief for homesteaders. Some proposals have been made to double the $25,000 exemption. Others include dropping the property tax completely and raising sales tax by 2.5 percent to help make up the difference.

My proposal for providing property tax equity is for the county tax assessors to keep a record of the yearly difference between the SOH cap taxes and the taxes that would be paid without the cap. Each year the over-the-cap taxes would be recorded and added up as unpaid tax. This over-the-cap total would grow on paper as a consequence of yearly taxes and increasing property value.

When the property is refinanced or sold these "over the cap accrued taxes" would be paid from the equity earned over the years by the homeowner.

I know there could be variations on this scheme as well as uncertainties and questions, and that is good because I think it deserves to be publicly vetted. I don't think I have heard of this being proposed or in effect anywhere, and I believe this system would resolve a number if issues regarding property taxes in Florida.

Sheldon Schwartz, St. Petersburg

Sales tax isn't too bad

In the past year my wife and I had the opportunity to spend time in New Zealand, where we learned about some of their tax system. The New Zealanders do have a small tax on the amount of property they own. However, and this is what will probably give some people pause, their sales tax is 12.5 percent. At first I was of the opinion that was terrible. However, when making a purchase, the tax is included with the price of the item so the tax is not noticeable.

I would be glad to pay 2 percent more in sales tax if the government would eliminate the property tax. Remember, everyone should pay their share.

Lloyd Goodwin, Gulfport

Try a combination

I propose a combination of property tax relief coupled with an offsetting increase in the state sales tax.

Simply put, the first $200,000 of property assessment - on all properties, regardless of use - with an additional $50,000 homestead exemption for those whose homes are their primary residence, would be exempt from property taxes. Any assessments of more than $200,000 (or $250,000 on homesteaded property) would be taxed as normal. The current cap of no more than a 3 percent annual raise in taxable home values on a homesteaded property would remain in force.

To offset this, the sales tax would be raised by 1 percent, with counties and cities permitted to raise their sales taxes by no more than an additional 0.5 percent.

As it stands, the proposal to eliminate property taxes altogether (in favor of an astronomical rise in sales taxes) would be a windfall blessing to the wealthy, while serving as a near-punishment for the poor. In all good conscience, this should not be allowed to happen.

Rod Barken, Brandon

House: End property tax, raise sales tax Feb. 22, story

Snowbirds suffer

It would seem that lawmakers have once again forgotten about the hundreds of thousands (millions?) of seasonal residents. While the House plan would benefit year-round residents, those of us who occupy our homes for the winter months would still be subject to property tax, and we will also pay the increased 8.5 percent sales tax!

Without an effective voice, snowbirds have reached the breaking point in subsidizing voting Floridians - and now the insurance mess. It is small wonder that so many are quietly laying plans to move to more friendly parts of the Sun Belt.

Hugh S. Hardy, Palm Harbor

Retirement goes cold

Florida property taxes are a nightmare for people who dreamed of making Florida their retirement home. In fact, for some of us the taxes have gutted our dreams.

Three years ago, my wife and I decided to retire in St. Petersburg. We found a beautiful condo downtown and bought it. Because I couldn't retire until December 2006, we rented the condo.

When we bought the condo, the owner was paying $3,000 in taxes. Our initial tax bill was $8,500. This year, we paid $14,000. The huge increase put us in financial jeopardy. As a result, we have to sell it before we can even move into it.

Ironically, our Realtor, who also lives in the building, is paying $1,400! As she said to me, "Richard, why do you think we can't afford to move?"

Florida, do something to save your state! But by the time you do, we will have sold our retirement dream and gone back to frigid Chicago.

Richard Damashek, Chicago

[Last modified February 28, 2007, 14:48:37]