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Commission gets 2nd plan to cut property tax
This proposal would give all residential property a 25 percent "super exemption."
Published March 7, 2008
TALLAHASSEE - A second major property tax-cutting proposal advanced Thursday in a commission that proposes state constitutional amendments, but only one is likely to go on the November ballot.
The new plan being considered by the Taxation and Budget Reform Commission would provide a 25 percent "super exemption" for all residential property, including second homes and rentals.
For the first three years, the amendment would impose a 0.5 percentage point increase in sales tax to temporarily replace $4-billion to $5-billion a year that school districts and local governments would lose.
Another approach that would cut taxes 25 percent was previously cleared for commission action.
The earlier plan would repeal the portion of property taxes the Legislature requires school districts to levy. The Legislature would have several options to replace the $8-billion annual loss, including a sales tax increase and the repeal of some sales tax exemptions.
Another committee sent the full panel a proposed amendment that would cap state and local revenue - taxes, fees and other income. The caps would let revenue increase to match inflation and population or school enrollment growth plus 1 percent.