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Guest Column

Amendment means relief

By CAROLYN KLING
Published July 15, 2007

Excessive property taxes are threatening to destroy the American dream of home and business ownership for many Floridians. Without question, we are facing a crisis. If citizens are not being taxed out of their homes, they are held captive. Also, there is ample evidence to suggest that people are starting to leave our state in significant numbers, citing skyrocketing property tax rates as a chief reason. This trend must change. Fast.

Through action taken recently by the Florida Legislature, help is on the way. An important step was accomplished after the June special legislative session when Gov. Charlie Crist signed legislation to roll back and cap local property tax rates. This action should be considered only the beginning of meaningful property tax reform in our state. The Legislature also voted to put a constitutional amendment for historic property tax relief and reform on the Jan. 29, 2008, statewide ballot.

While this proposal will provide significant property tax relief, passage is by no means guaranteed. This is a matter that deserves our full attention and our favorable consideration at the polls.

A vote in favor of the amendment will give property owners the choice of either maintaining their current "Save Our Homes" annual assessment cap, or changing to a new "super homestead exemption." The "super" exemption, combined with the recent statutory changes that "cut and cap" local property tax rates, will provide significant relief for the majority of homeowners. First-time home buyers, buyers of lower-priced properties and those who bought their homestead within the past five years will benefit the most. During a time when housing affordability has become a major issue, this amendment will also help teachers, firefighters, police officers and other vital service providers realize the American dream of home ownership.

In fact, according to an analysis conducted by this newspaper, the new "super homestead exemption" would cut property taxes by about 70 percent for the owner of a new median-priced home in the Tampa Bay area. For example, the owner of a homestead property bought in St. Petersburg in May of 2005, with a just market value of $207,800, would save an estimated $3,000 annually in property taxes - if the amendment passes.

Voter approval will be advantageous for other groups as well. Current homeowners, especially those benefiting under the "Save our Homes" cap, will no longer be punished financially for changing homes, whether they upsize or downsize. Therefore, regardless of their current situation, a vote in favor of the amendment would benefit all homeowners substantially in the future, and, by offering a choice, hold harmless others who have no plans to ever move their homesteads.

As citizens, we have before us a historic opportunity to address the property tax crisis that is overwhelming our state. We are now at an important crossroads that concerns the very future of our state, and Gov. Crist's leadership and support will be instrumental. We hope the "People's Governor" will continue to work aggressively to ensure passage of this historic Property Tax Relief and Reform Constitutional Amendment that will greatly benefit so many of our citizens. If so, he can count on Pinellas County Realtors to be by his side for the duration.

Joined by Realtors around the state, we will continue to work tirelessly over the next seven months to make sure the amendment passes, and that citizens get the property tax relief they are demanding - and so rightfully deserve.

Carolyn Kling is chairman of the Pinellas Realtor Organization.

[Last modified July 15, 2007, 07:13:36]