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News & Notes
Property Tax Update
On Thursday, House and Senate leaders told their members they would not be convening before the start of next week. While many members returned to their districts, others stayed behind to try and reach an agreement.
Senate members have expressed frustration that a new deal was being discussed rather than sticking to the deal originally put forth. Meanwhile, on Friday the House released a plan that included a 5% cap on all nonhomesteaded properties.
At this point it is difficult to say what - if anything - will happen next week. We will keep you posted when and if the Legislature releases any county-by-county numbers or if a new deal is negotiated. While discussions are being had or your legislative members are at home, we strongly encourage you to continue discussing with them the two issues outlined below. Regardless of the final deal it is critical that it not contain language that would limit the authority of local governments and that whatever reductions on Save Our Homes develop, provide local governments with an opt-out.
For questions or comments, please contact FAC at (850) 922-4300.
PROTECT LOCAL CONTROL
Proposed: "By general law, the legislature shall limit the authority of counties,
municipalities, and special districts to increase ad valorem taxes."
Fiscal Impact: Indeterminate
FAC Position: The Florida Association of Counties is also seeking an amendment
to the proposed joint resolution on constitutional amendments to strike
the following language and retain constitutional authority over establishing
millage rates.
FAC Discussion Points:
- Protect residents' ability to decide how their community grows. Keep their voices in the decisions that affect them and their neighbors. These decisions can range from whether a community should purchase environmentally sensitive land for future generations, build a new ballpark, pave new roads, or invest in the local economy.
- Without the ability to make local decisions, our communities will be forced to turn to Tallahassee and compete against one another for funding and authority. We should keep that authority at home and allow residents and their local leaders to make the decisions that are the best for their unique community.
- Counties provide services that add to the quality of life in Florida's communities. For example, counties provide their citizens with public transportation, parks, libraries, community health care, affordable housing, animal services, and economic development.
- The FAC and its members support property tax reform. We recognize the imbalances of the system and the importance of providing fairness and equity to all property tax payers. However, Florida's 67 counties do not believe it is right - or honest - for state government to place the burden of property tax relief on local governments, while state funding responsibilities totaling more than $1 billion annually are assessed to local governments.
PROVIDE FLEXIBILITY
Proposed: To double the homestead exemption by providing an additional
$25,000 exemption on the $50,000 - $75,000 portion of homes assessed
value.
FAC Position: The Florida Association of Counties is seeking a legislative
remedy to the override provisions that would begin to apply during the 2008-
09 budget development process by establishing only one a super-majority
vote requirement to exceed the maximum mileage rate. This supermajority
vote would replace any need for a unanimous vote of the board of county
commissioners or a referendum vote to exceed the maximum millage rate.
FAC Discussion Points:
- Current proposals to overhaul Florida's property tax structure could have dire consequences for Florida's 32 small counties, where property tax revenues are already inadequate to pay for essential services.
- With lower property values than the rest of the state, small counties already have a higher percentage of their property off the tax rolls thanks to the $25,000 homestead exemption and agricultural land use designations. Thus, small counties have higher property tax rates-many are at or near the 10 mill cap-and lower revenue-raising abilities.
- The shortfall resulting from lower property tax revenues is not alleviated by other funding sources for small counties. State shared revenues and local option sales taxes authorized specifically for small counties do not offset deficiencies in the property tax.
- The needs for these services are as unique as the 67 counties in Florida. A one-size-fits-all mandate from Tallahassee may work for one community while hindering the success of another.