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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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.

The insurance industry seems to like these ideas, although for the Florida taxpayer it doesn’t sound like too good of a plan.  If this measure is adopted, then even tourists to the State of Florida will wind up paying for damage, and I am not too certain there will be a lot of tourists if the “big one hits.” 

It appears that lawmakers are interested in “just getting the rates to do down” rather than the long-term consequences.  It reminds me of the person buying a home they cannot afford because they can get an interest only mortage and they can make the monthly payments.  Sooner or later, it will catch up with you.   

I hope that the committees working on some solutions to the property tax issue are discussing their ideas with the homeowner insurance committees.  Both groups are touting an increase in the state sales tax as an answer to their respective problems. 

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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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