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Politics

Rollback of taxes advances

By ALEX LEARY and STEVE BOUSQUET
Published March 8, 2007

TALLAHASSEE - House Republicans moved swiftly on the second day of the legislative session to advance a plan that would force counties and cities to roll back property tax rates to 2001 levels, trimming billions from local budgets.

"Procrastination equals inaction," said Rep. Carl Domino, R-Jupiter. "We need to do something. There's a demand for relief."

But county and city lobbyists warned that the $5.8-billion rollback, which would lower the average tax bill by 19 percent, could mean less police protection. A lobbyist for counties, Sarah Bleakley, said a county sheriff might not be available when "a woman in the unincorporated area has a burglar at her door."

The issue of property taxes is the biggest facing the Legislature this session, and the angry cries from across the state have put enormous pressure on lawmakers and Gov. Charlie Crist to deliver relief.

House Democrats share the concern, and are working on their own proposal, but accused Republicans on Wednesday of rushing the legislation without understanding the financial implications.

"Why are we railroading this thing through without careful deliberation?" asked Rep. Franklin Sands, D-Weston, one of five Democrats who opposed the bill.

"Enough is enough," said Rep. Frank Attkisson, R-Kissimmee, one of many lawmakers who have traveled the state hearing irate Floridians complain about high-flying property taxes. "We are extracting dollars from citizens that they can't afford to pay."

The House proposal would roll back the tax rates to Jan. 1, 2001, then adjust them upward for inflation and population growth. School districts would not be affected by the rollback.

Counties, cities and special taxing districts could collect only future taxes based on the rate of inflation.

The bill would allow the tax rate to be increased by a super-majority vote of the local governing body.

But the bill's fate in the Senate is unknown, and Gov. Charlie Crist has only called the ideas "intriguing."

House Speaker Marco Rubio, R-Miami, also wants to eliminate all property taxes on homesteads, making up for billions in lost revenue with a 2.5 percent sales tax increase. That plan would require voter approval during a special election later this year.

Local mandates

Counties and cities are strongly opposed to the rollback. They said big portions of their budgets are mandated by the state for retirement benefits, nursing home care and homeland security, or are affected by rising health care premiums and union contracts.

A legislative analysis estimates the bill would cut county property taxes by $3.3-billion statewide, city taxes by $1.5-billion and special district taxes by $1-billion.

Hillsborough would have to cut taxes by 22 percent, or $176.3-million.

Pinellas County would be required to cut taxes by an estimated 29 percent, or $152.9-million. County budget director Jerry Herron had even higher figures, saying Pinellas would lose $259-million of the $507-million in property tax revenue it expects to collect this year, or more than 50 percent.

Pinellas Commissioner Susan Latvala, who this year serves as president of the Florida Association of Counties, faulted plan backers for their unwillingness to hear out skeptics and local leaders. "They don't want to listen to anybody," she said. "They want to do something bold and pat themselves on the back."

Today, the association plans to release an analysis of how Florida counties have spent the record property tax windfalls they have enjoyed from 1999 until 2006.

Latvala said the report shows that most of the money has gone to meet court and jail needs and cost increases outside the control of local government.

Commissioners in Tarpon Springs, facing more than $2-million in cuts, are so worried that earlier this week they approved their city manager's request to spend the final six weeks of the legislative session in Tallahassee lobbying lawmakers on the matter. The city of 20,000 usually doesn't employ a legislative lobbyist, and it estimates it will spend $4,600 to have City Manager Ellen S. Posivach there.

Bleakley, special counsel to the Florida Association of Counties, predicted "draconian choices" in roads, law enforcement, EMS, libraries, court facilities, growth management programs and environmental programs.

Republican push

Skeptical Republicans dismissed the warnings.

"We're talking about people's homes," said Rep. Julio Robaina, R-South Miami. "The last thing they're worried about is a park."

Democrats in the House pleaded with Republicans to delay a vote on the bill, saying the impact of the property tax rollback is not fully known.

Rep. Jack Seiler, D-Wilton Manors, sent Rubio a letter Tuesday, urging him to be "patient, prudent and responsible" in crafting a tax cut plan. But the Republican majority forged ahead and the bill easily cleared Wednesday's hurdle on a 10-5 party line vote.

"If I could vote for it twice, I would," said Rep. Rob Schenck, R-Spring Hill, whose county, Hernando, would lose $25.5-million in tax revenue under the bill.

Rep. Ed Homan, R-Tampa, also voted yes. Rep. Michael Scionti, D-Tampa, voted no.

"I do support Speaker Rubio in trying to find meaningful and comprehensive reform," Scionti said. "I was just hoping we'd see a more measured, a more balanced approach."

The legislation heads next to the House Policy and Budget Council. A workshop is scheduled for Friday and a vote could be made the following Friday. Then the bill would head to the House floor. "It's a 60-day session; there's going to be a lot of discussion," said Rep. Andy Gardiner, R-Orlando.

[Last modified March 8, 2007, 01:28:46]