Lawmakers to take break from tax talk

Lawmakers to take break from tax talk

	Published : Thu, 18 Oct 2007 17:39 By : Agencies Print this Story

TALLAHASSEE, Fla. (AP) - State lawmakers will take a few days off from talks over how to cut property taxes, unable so far to reconcile differences over who should get tax breaks and how much can be trimmed.

House Speaker Marco Rubio told representatives Thursday that the chamber will break until Monday, giving members time to mull over various proposals, and study the potential effects of different plans.

The Senate passed a proposal Wednesday to put a measure on the ballot next year asking voters to overhaul the way property taxes are calculated. That proposal could be accepted as-is by the House, but that isn't likely. The House generally is in favor of a larger tax cut.

The Senate's four-year $11 billion tax cut plan would double the amount of home value that's exempt from property taxes, and prevent large increases in assessed value when people move.

The proposal has a wide range of other provisions, including a business tax cut and an increased tax exemptions for low-income senior citizens and first-time home buyers.

Rubio said the Senate's plan would be part of the mix as the House studies its options.

'I also want it to reflect the priorities of the members of this institution,' said Rubio, R-Miami.

How much property owners would save under the proposals depends on which are included, how many of the various tax breaks they might be eligible for and where they live because of differences in local tax rates. But savings estimates now range from $240 to more than $800 a year.

Both chambers agree that there should be a limit on how much property taxes can go up when people move. Currently, taxable value increases are capped at 3 percent as long as a homeowner does not move. But if they buy a new home, they are assessed on its true value, which means they could be in for a big tax increase. The Senate and House agree that the 'Save Our Homes' cap should continue when people move.

Both also agree that the homestead exemption, which makes the first $25,000 of a primary home's value tax exempt, should be increased, although exactly how much to increase it is still undecided in the House.

Doubling the homestead exemption would save homeowners an average of $240 next year, according to legislative estimates. Being able to take the 'Save Our Homes' limit to a new house could provide average savings of more than $800 next year. Those purchasing their first home could save $500 on average from the proposed break for first-time buyers.

The Senate and House both are supporting a disputed requirement that limits how much local governments can raise property tax rates. That element is despised by cities and counties, who say that local officials and voters best know when taxes should be raised to deal with issues that might come up -- not state lawmakers in Tallahassee.

Most lawmakers want to come up with a proposal that can be put on the Jan. 29 presidential primary ballot, rather than waiting until next November, so voters will see relief sooner and lawmakers can campaign for re-election having given homeowners a tax break.

The Legislature has until the end of October to come up with a proposed ballot measure to be able to get the issue before voters in January.

The House and Senate generally disagree on how much of a tax break to give low-income elderly homeowners, and whether there should be a limit on how much property taxes can go up for non-homestead properties, such as businesses, rental properties or vacation homes. The House wants to limit increases for those properties, but the Senate says that would cost the state too much.

The House also has proposed cutting how much of the state's property tax dollars should go to schools, but replacing that with a 1 percentage point sales tax increase. That would shift some of the burden for education funding from homeowners to people who buy things -- like tourists.

Rubio has made it clear that the plan approved this week by the Senate does not cut taxes enough for his liking, and most of the Republicans in the House agree. Democrats in the House are also getting a say, despite being outnumbered 77-42. Some Democratic proposals are being seriously considered for addition to the House plan.

House leaders will work through the weekend, Rubio said, trying to assess various proposals and get a feel for what the financial hit to the state would be if each were included. But no official meetings will be held before Monday.

Many Florida property owners have complained that as property values have soared in recent years, they have seen enormous tax increases that have outpaced their ability to pay them. Democrats say the problem has been exacerbated by Republican tax cuts at the state level that have shifted more responsibility for paying for schools to local districts, which are funded by property taxes.

Gov. Charlie Crist proposed the expansion of the homestead exemption and making the cap on increases portable. He has generally cheered lawmakers on, and lobbied for them to give voters something to decide on in January, although he hasn't been publicly clear about what exactly he wants to see in the measure.