Seems like there is a push here in Florida to do away with property taxes and increase the state sales tax by a few cents.  The current statewide sales tax is 6% with some counties being a half-penny or penny higher.  I saw one estimate that said the state sales tax could go as high as 13%.  Some of the House leaders in Tallahassee will be unveiling a plan today to Governor Crist, which is sure to spark more contentious debate.  From News-Press.com in Southwest Florida: 

Their plan, to be unveiled today, also would roll back taxes on all businesses, second-homes and rental properties to a pre-boom year like 2001. 

“It eliminates everyone who has homesteaded property from complaining about their property taxes,” said Rep. Dave Murzin, a Pensacola Republican who is part of a property tax reform panel touring the state. “They wouldn’t have any.”

The property taxes here in Florida have been skyrocketing the last few years due to the increasing property values.  Homesteaded properties enjoy a benefit whereby property taxes are capped by 3% per year.  Non-homesteaded properties such as businesses, rentals, and second homes do not enjoy this benefit.   All who pay property taxes are looking for relief but are facing staunch opposition from local and county governments, whose budgets have swollen from the increased revenues. 

This should be very interesting to watch in the coming days and weeks. 

 

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In the ever changing debacle of homeowner insurance in Florida, comes yet another proposition being floated.  Pay Now Or After The Big One? outlines the gamble that some legislators would like to take as a solution to the insurance crisis.  Lawmakers are considering letting the Florida tax payers shoulder more of the burden if a catastrophic hurricane were to hit.  This would be done via an increase in the state sales tax. 

Rick Greene, owner of Southwest Insurance Associates of Sarasota, said reducing rates and capping exposure for carriers is a good approach, but many questions need to be answered.

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I’ve written in the past about the Florida homeowners insurance problems, and now another financial issue facing homeowners is going to be addressed.  Florida legislators have announced that they will conduct a series of Town Hall meetings to hear ideas on the current property tax problems. 

Some ideas currently making the rounds include the increase of the $25,000 homestead exemption along with the portability of the property tax cap (which caps property tax increases to 3% in a given year).  Guess who is opposing these?  Local city and county governments, whose budgets have soared in recent years with the increase of property taxes.  But Florida legislators are clearly interested in changing Florida’s reliance on property taxes.  These include a state income tax (which reportedly is off the table), or a dramatic cut in property taxes with an increase in utility fees.  I’ve even read some suggestions of making a state wide sales tax.  These meetings ought to be very interesting and most likely, well attended. 

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