June 27, 2007 Citizens to decide on tax cut…
The Florida Legislature last week in special session passed an interesting tax cut in two parts… First, the tax-cut requires cities and counties to hold tax rates at 2006 levels – and then cut up to another 9 percent, depending on how much they raised taxes over the past five years. Those that raised the most will have to cut the most.
However, the more interesting (to me) component will come in January. In January FL voters will vote on to change the state’s constitution to increase the property exemption for primary residential homes. It will take 60 percent of the voters to approve the measure, which would exempt 75 percent of the first $200,000 of a home’s value from property taxes. Homes valued between $200,000 and $500,000 would get an additional 15 percent exemption.
I’m curious how the campaign will go the next few months…of course we all want lower property taxes, but what are we willing to give up? Or will this just cause a shift in public finance (higher impact fees for developers, higher sales tax for residents, etc)?Florida Gov. Crist signs tax-cut legislation last week (I love how this kid with the truck is so uninterested in the Governor).