Rick Patrick: Greene Publishing, Inc.
If Florida voters approve a measure recently passed by the State Legislature, many Florida homeowners could see a reduction in their property tax bills. This all depends on whether the voters of Florida vote to approve the measure in November, 2018. If the measure is approved by 60 percent of the Florida voters, it will become law.
The measure comes from House Joint Resolution 7105 (HJR 7105) - Increased Homestead Property Tax Exemption. The resolution calls for an increase in the property tax exemption on homes valued over $100,000 by another $25,000. This would be in addition to exemptions already in place.
Currently, if a house is valued at $125,000 the homeowner would pay taxes on a total of $75,000 worth of the assessed value. Or the value between $25,000 and $50,000 ($25,000) plus the value between $75,000 and $125,000 ($50,000). If HJR 7105 becomes law, that same homeowner would then pay taxes on a total of $50,000 worth of the assessed value - or the value between $25,000 and $50,000 ($25,000) - plus the value between $75,000 and $100,000 ($25,000). The $25,000 worth of home value between $100,000 and $125,000 would be exempt.
This may seem like a tempting proposal, but like the old saying goes, “There's no such thing as free lunch.” The loss of property tax revenue could hit City and County governments with monetary shortfalls which would have to be recovered in other ways. According to Madison County Coordinator Brian Kauffman, Madison County could see a shortfall of $157,387 if the measure is passed. The legislation does allow for many rural counties such as Madison County to get a reimbursement for 95 percent of lost revenues. But, according to Kauffman, that reimbursement is only available on a year-to-year basis. Therefore, that reimbursement cannot be depended on for reoccurring expenses. Cities could be hit even harder because cities are not eligible for the reimbursements. To make matters potentially worse for cash-strapped counties and cities, most general ad valorem funds go to public safety, such as law enforcement and emergency medical services. “Money is tight, but we'll continue to try to do more with less to provide city services. Many of our employees already are multi-tasking, wearing several hats. Although sometimes challenging, this helps us stretch tax dollars. Plus, we'll continue to pursue grants to leverage tax dollars even further,” said Madison City Manager Tim Bennett. “The impact [on Madison] would not be insignificant. It could be as much as $100,000,” said Madison City Commissioner and former Mayor Jim Catron. “It sounds great to get a tax break, but this proposal will take money from essential community services. Not only will EMS (Emergency Medical Services) suffer, but local fire and law enforcement will lose too,” said International Association of EMTs and Paramedics National Director Phil Petit. The Florida League of Cities isalso opposed to the proposal.
Both Rep. Halsey Beshears and Sen. Bill Montford voted in favor of the resolution.