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Update on Florida Tax Issue

Posted by Laura on 20 August, 2007 in Library News

Tax Relief Package Adopted – After only three days of a special session on property taxes, legislators adopted SJR 4B, a constitutional amendment, permitting voters to decide in January 2008 if they want to trade the existing “Save Our Homes” amendment for a “super-sized” homestead exemption. (A homeowner would have the choice of the “super-sized” exemption, or remaining at the 3% cap under the Save Our Homes amendment.) In addition to the homestead exemption, the amendment also includes exempting up to $25,000 worth of business equipment from paying the tangible personal property tax. HB 1B also freezes city and county property tax rates at their 2006-2007 levels and then cuts those rates anywhere from 3%-9%, depending on local government tax increases over the past five years. Gov. Crist (R) has indicated he intends to sign the rate freeze while 60% of voters would have to approve the homestead exemption in the Jan. 29 election (HB 5B establishes the Jan. 29, 2008 election). The Gov. signed HB 1B and HB 5B June 21.

Mayor Hersh (D) of Weston has filed a claim with the Florida Supreme Court challenging the constitutionality of the local government budget caps, the associated tax cuts as well as the option of preserving the Save Our Homes amendment or choosing the “super-sized” homestead exemption; the Mayor claims the wording on the upcoming referendum is unclear. The state Supreme Court held the claim must follow the ‘usual path,’ beginning with a hearing in the lower court, the Leon County Circuit Court. In another ruling issued Aug. 6, a Tallahassee Circuit Judge held the Save Our Homes amendment did not violate the U.S. Constitution’s equal-protection and right-to-travel provisions.

The Legislature adjourned May 4. A special session was held June 12-15. A special session is scheduled for Sept. 18 through the first week of October to cut approximately $1.1 billion from the state’s budget.