Print

Email story

Comment

Email editor

Politics

Tax proposals at a glance

By the Times staff
Published April 27, 2007

THE HOUSE PLAN

Total savings: at least $47-billion over five years

• The plan has two parts. The first part would require voter approval in a statewide referendum to do this: Eliminate property taxes that fund public schools and replace them with a 1 cent sales tax. Then, voters in each county could get rid of all other taxes on primary homes by approving an additional 1.5 cents on the sales tax.
• The second part is a roll back of tax revenues for cities and counties to 2000-01 levels, or 2003 if voters approve the sales tax replacement program above. Either way, budgets could grow with the population.
• Other pieces: Exempt at least the first $25,000 of business equipment from a tax on tangible property. Limit commercial property assessments to current use, not its highest market value.

THE SENATE PLAN

Total savings: About $20-billion over five years

• Roll back property tax revenues for cities and counties to 2005 levels, where they would freeze for two years. After that, budgets could grow with population and income levels.
• Allow homeowners to carry the Save Our Homes benefit to new dwellings anywhere in the state.
• Give first-time buyers a 25 percent reduction in the taxable value of their new home for the their first year.
• Exempt the first $25,000 of business equipment from a tax on tangible property.
• Limit commercial property assessments to current use, not its highest market value.

THE GOVERNOR'S PLAN

Total savings: $34.5-billion over five years

• Roll back local government tax revenues to 2003, with an exemption for school districts. Budget growth would be limited to inflation and population, including impact and other fees.
• Double the homestead exemption to $50,000.
• Allow homeowners to carry the accrued savings of the Save Our Homes to new homes.
• Give first-time buyers a 25 percent reduction in the taxable value of their new home for the their first year.

[Last modified April 27, 2007, 19:26:44]