Property tax negotiators don't move much
Despite the confusion and disagreement, House and Senate members remain confident that they'll reach a compromise on the rollbacks.
By ALEX LEARY
Published April 24, 2007
TALLAHASSEE - House Republicans opened the first day of property tax negotiations Monday by insisting on substantial, bottom-line savings for homeowners, snowbirds and businesses.
But the cuts are so deep - $85-billion over five years - they all but mandate the controversial House plan to increase the sales tax by up to 2.5 cents.
"We've said we're not going to raise taxes; we're going to lower taxes," said Sen. Dan Webster, R-Winter Garden.
At the end of the day, the result was both sides gave little substantial ground, adding pressure to finish a deal before the session ends May 4.
Rep. Dean Cannon, R-Winter Park, said the House would accept no less than $1,200 in average annual savings for primary homeowners, $750 for snowbirds and second-home owners and $3,300 for commercial property.
He said it does not matter how the savings are made, only that they get done.
"We are not committed to any particular approach to achieve needed and essential property tax relief," Cannon said, carefully avoiding references to the sales tax.
An $85-billion cut would gut local government budgets.
The only way to lessen the impact, senators said, would be to find another revenue source.
Raising the sales tax by 2.5 cents would drop the net savings by about $10-billion a year - money that would go back to local government.
The net savings, then, would be about $35-billion.
There was considerable confusion and disagreement over the numbers Monday as the two sides held a final 8 p.m. meeting.
House leaders put the net savings at more than $40-billion.
Either way, it dwarfs the Senate, whose plan calls for more than $12-billion in savings achieved by rolling back the property tax base to 2005 levels and allowing homeowners to carry their Save Our Homes benefit to new dwellings, among other things.
The House calls for rollbacks to 2001 or 2003 and for abolishing property taxes on primary homes for the increased sales tax.
"We're confident we can work together on this," said Sen. Mike Haridopolos. "We're just at step one, guys."
There was some progress Monday.
The House said it would agree to bar city and county government from voting to override revenue caps for the next two years. That has been the Senate position, though some are worried it could hurt smaller communities with building projects already in the works.
Negotiations continue today and will last through the week.