President Teresa Jacobs OpEd on Amendment 1
January 2008
Lately there’s been a lot of talk about property taxes. But on January 29th the talk stops and you will have an important decision to make about whether to amend the State’s constitution to change the way property taxes are assessed.
The last major constitutional change to our taxing structure occurred in 1992, when Save Our Homes was adopted to protect homeowners from being taxed out of their homes. This protection limits their tax increases to a maximum of 3 percent annually.
As a result, while rising property values have driven up taxes for many, those who own their homes haven’t been hit by these large increases. Others, such as business owners, second homeowners, and renters who pay property taxes indirectly through their rent, do not have the same protections. Many of them have seen large tax increases. Yet, this amendment provides most of the relief to homeowners, while providing little, if any, relief to those who have borne the brunt of the recent tax increases.
Beyond the issues of equity and fairness, the potential impacts to public services will be shared by all of us. So, as you weigh the benefits and costs of this amendment, consider not only what it will do to your tax bill but the long-term consequences this change to the state’s constitution may mean to you, your community and our state.
Let’s face it, we all know there’s no such thing as a free lunch. There’s also no such thing as free government services. Nobody likes paying them, but property taxes fund police officers, fire fighters and ambulance service. They build schools, operate libraries, parks, community health programs and a litany of other public services you depend on and expect from your local government.
I’m not saying all of these services will disappear if this amendment passes. The truth is -- the impacts will vary city by city and county by county. But here are a few things you may not have considered.
First, Amendment 1 is the second part of a plan by state lawmakers to control local property taxes. Imagine if you will, your neighbor decided to start managing your financial matters without your permission or with any in-depth knowledge of your expenses.
New laws were passed last year that required most local governments to cut taxes. County governments alone reduced their budgets by over $1.5 billion to accommodate these cuts. And this year, counties will face additional state control on local taxes as a result of last year’s laws.
Second, no one has fully analyzed the long-term affect these changes may have on the stability of Florida and her local governments’ ability to provide basic public services. But when fundamental changes are made to something as complex as Florida’s taxing system, there are bound to be unintended consequences.
Finally, state lawmakers who offered these tax cuts aren’t the ones who will have to make tough choices about which local services or programs to reduce or sacrifice altogether; your local elected officials will have to wrestle with these decisions.
So before casting your ballot on January 29th, know the true impact of your vote! Contact your local government representative, school board member, fire chief, and police chief or sheriff to find out what affects these reduced tax revenues will have on the services they provide.
You have a right to know the impact this amendment will have on you, your community and the future of our state.
Teresa Jacobs
FAC President 2007-08
Orange County Commissioner