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Hillsborough Concerned Citizens On Tax Reform!
This group held its first meeting April 25th, 2007. The General agreement points on property taxes.
If you look at the chart below, local governments are utilizing far more revenue than the population growth requires. When the tax becomes a burden to its citizens then something is wrong with the system. The consensus of this group was that local spending is getting out of hand. Local government should control spending by making sure that waste is not the preeminent factor in the equation. This group does not advocate eliminating jobs but rather the elimination of uncontrolled waste.
1. To take effect this year, immediately roll back county and municipal revenue on all property to at least 2003 levels and cap the growth of property tax revenue to no more than inflation and population growth. This capped amount would be the baseline -- future revenue from property taxes for cities and counties could not go up more than the combined total of inflation and population growth. (See the charts below for how spending by local government is out of control.)
The following two items would require voters to pass a constitutional amendment:
2. Make the Save Our Homes benefit portable anywhere in Florida so current tax savings can be taken with homeowners whenever they move.
3. Double the homestead exemption to $50,000.
4. For commercial property, local property appraisers could not use what’s called the “highest and best use” standard, but would be required the “current use” or “income generated” standard, whichever is lower. This action could be accomplished through legislation.
Key points on taxes and spending plus two charts.
Taxing and spending by local government has grown out of control. The charts below show that property tax revenue growth in Hillsborough County from 2001 through 2007 has grown by a whopping 93.1 percent, almost three times - -three times!! – faster than the combination of population growth and inflation. In the City of Tampa, the same problem: property tax revenue growth is a staggering
88.5 percent from 2001 through 2007.
One very large stream of revenue you do not hear about is the Community Investment Tax, the one- half cent local sales tax. These funds – not from property taxes and which will remain unaffected from a rollback in property tax revenue -- are available for the City of Tampa and Hillsborough County governments to spend. Have the taxpayer-paid lobbyists for the city and county told you about these funds? Probably not.
From 2002 through 2007, the City of Tampa received $86 million in CIT revenue, including an estimated $16 million in 2007 alone. The city has bonded some of its CIT revenue, so that over the 2002 through 2007 period, some $157 million -- again, additional funds over and above what the city receives in property tax revenue – has been available for projects in the city. Hillsborough County will have received an estimated $239 million from 2002 through 2007 period. The county has also bonded CIT revenue to generate additional funds for projects.
Question: Why can’t the CIT revenue be used to make up for lower property tax revenue. Why shouldn’t cities and counties prioritize their spending like businesses and families do?
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At An Interview With WEDU on Saturday March 24, 2007 Florida House Speaker Marco Rubio Pushes For Tax Relief For The People Of Florida!
The House Plans roll backs on property tax rates this year, to cap the rate of revenue growth of state and local government limits property tax increases on non-homestead property and eliminates all property taxes on homestead properties.
Following through on their 100 Ideas efforts, House Speaker Marco Rubio talked about the efforts the House is making to reduce the tax burden. Rubio unveiled a comprehensive property tax relief proposal designed to cut Floridians’ property tax bills by nearly 20 percent this year. In addition to reducing property tax bills by nearly one-fifth, the House leaders’ relief plan caps the rate of revenue growth for both state and local government at reasonable levels and gives voters the option of abolishing property taxes on homestead properties and replacing it with a modest increase in the sales tax.
“When we traveled the state last year listening to Floridians’ ideas, we heard a common refrain. Property taxes have grown so burdensome that homeowners and business owners fear being forced out of the homes and businesses that they have worked so hard to build,” said Speaker Marco Rubio (R-Miami). “Floridians were adamant: timid tweaks to the status quo will not do. Our proposal is a bold idea that provides comprehensive reform and meaningful tax relief to all Florida property owners.”
Bringing real property tax relief to Floridians was Idea 96 in the House’s 100 Innovative Ideas for Florida’s Future.
Government should not grow faster than its citizens’ ability to afford it, but that is exactly what has happened throughout Florida these past few years. We want to make sure that taxpayers are getting value from government. Our plan recognizes that it doesn't matter how much money government spends, but how wisely it spends the money it collects that really counts. Our plan will ensure all governments in Florida spend smarter and are more accountable to the taxpayers.
Property tax relief is about more than just the money, it’s about bringing financial security to Florida’s families. It’s about giving peace of mind to homeowners and business owners that property taxes will not force them to abandon their plans and dreams for their family's future.
Property Tax Reform Constitutional Amendment
1. In a 2007 special election, voters would have the option of eliminating all property taxes on homestead property.
2. In addition to eliminating property taxes on homestead property, starting in Fiscal Year 2008-09, state revenue growth would be limited to a reasonable amount that would be allowed under a prescribed formula that accounts for population growth and inflation since 2001-2002.
3. For the first time, Medicaid revenues would be placed within the revenue growth limitation. Currently these revenues are excluded from the state’s revenue limitation.
4. The state revenue limit may be exceeded in any year by a 2/3 vote of each legislative chamber.
5. The constitutional amendment would also limit the continued rapid expansion of local government by containing millage to a rate that produces the same tax revenue as was generated in the previous year plus population growth and inflation, excluding new construction and annexation. The revenue cap may be exceeded through a unanimous vote of the governing body.
6. School districts would not see their budgets reduced under the House’s plan. The future growth of school district budgets from property tax revenues would be limited by the amendment, but state government could choose to put more state revenue into schools.
Abolishing Property Taxes on Homestead Property
1. If the elimination of taxes on homestead property is passed by the voters, the state sales tax will be increased by 2.5 cents on all transactions subject to sales tax to offset revenue losses to local governments, schools and other entities that used property tax revenues.
2. This additional sales tax will be used to replace revenues lost due to the Constitutional Amendment.
3. This replacement revenue will only be implemented if voters approve the Constitutional Amendment that exempts homestead property from property tax.
Statewide Savings for Property Owners Under House Property Tax Relief Plan
Statewide Savings This Year
$5.77 Billion Total 19% Total Savings
Average Taxpayer Savings
Homestead Property Owner: $433
Non-Homestead Residential Property Owner: $767
Commercial Property Owner: $3,353
Statewide Savings Upon Passage of Constitutional Amendment
$13.55 Billion Total Property Tax Reduction
$7.78 Billion in Sales Tax Replacement
$5.77 Billion in Total Tax Savings
Average Taxpayer Savings
Homestead Property Owner: $2,283
Non-Homestead Residential Property Owner: $767
Commercial Property Owner: $3,353 |
