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Tax
Plan Passes: The People Have Spoken
By Jim Ash
Florida Capital Bureau Chief
Tallahassee.com
January 30, 2008
ST. PETERSBURG — Amendment 1 passed easily Tuesday night, riding
comfortably on the coattails of its No. 1 supporter, Gov. Charlie
Crist, and defying pollsters.
Realtors gathered in a
hotel bar at the bay front Renaissance Vinoy Resort cheered as the
results were splashed across large-screen TV's. Fireworks could be
seen exploding over Tampa Bay.
"The people of Florida have
spoken and they have demanded relief, tax relief," Lt. Gov. Jeff
Kottkamp told a cheering crowd of about 50 supporters. "This is a
great day for Florida."
With 99 percent of the
precincts reporting, here was the vote on Amendment 1:
Yes: 2.63 million votes, 64
percent
No: 1.47 million, 36
percent
The victory was more about
the dismal state of Florida's economy and lawmakers will have to be
more creative than ever to keep schools afloat, warned Florida
Education Association chief Andy Ford, one of the measure's chief
critics.
"Tonight the voters of
Florida have indicated that they are strapped financially and that
they need immediate relief ... even at the cost of funding our
schools and other vital services," he said in a written statement.
Buoyed by the results,
lawmakers are poised for another round of tax- cutting proposals,
including measures that would make it easier for property owners to
challenge their assessments in court and giving breaks to waterfront
hotels and marinas.
"This is not the end of the
fight," said Sen. Mike Haridopolos, R-Indialantic and a key Senate
negotiator for the proposal. "I think it sends the message that the
people of Florida are ready to put a limit on the money local
government spends."
The results mean that for
the first time, homeowners will be able to take their accumulated
Save Our Homes assessment savings with them when they move. Homes
worth more than $50,000 will get a boost to their $25,000 homestead
exemption, but not for school taxes, saving the average homeowner
$240.
Commercial and
non-homestead property owners will see a 10 percent annual Save Our
Homes-like cap on their assessments. Businesses will get a $25,000
exemption on the tangible personal property taxes they pay on items
such as equipment, wiping more than 1 million small businesses off
the rolls entirely.
Opponents, including
teachers, firefighters and government worker unions, were bracing
for the worst. Teachers predicted more failing schools and local
governments warned about loss of services and cutbacks in police and
fire protection.
The race was close until
the polls opened. Crist adviser and former Chief of Staff George
LeMieux said earlier in the day that internal polls as late as
Sunday showed the measure reaching only 59 percent, just 1 percent
shy of the 60 percentage points needed for passage.
The passage was not only a
personal victory for Crist, but a testament to the power of
fundraising. Supporters at Yes on 1 racked up more than $4.1
million, including $1 million donations each from the Florida
Association of Realtors and Florida Power & Light.
Opponents, including the
Florida Education Association and the Florida Professional
Firefighters and the Florida League of Cities, raised a little more
than $2 million.
Tax Chaos
Reigns, Not Reform
By Pamela Hasterok
NewsJournalOn Line.com
September 27, 2007
FRESH TALK
Three blind mice ..,
they all run after the farmers wife,
she cut off their tails with a carving knife,
did you ever see such a sight in your life
as three blind mice.
Indeed, we have.
Gov. Charlie Crist, Senate President Ken Pruitt and House Speaker
Marco Rubio are acting out the nursery rhyme on front pages across
the state. They've been running blindly about since Monday, when a
Leon County judge threw their property-tax measure off the ballot
for being misleading and inaccurate.
The state appealed the ruling, but what happens next is still a
mystery.
The governor wants to rewrite the state constitutional amendment
during next week's special session so Floridians can vote on it Jan.
29.
The Senate president wants just to defend the amendment in court.
The speaker wants to do both.
The House would like the satisfaction of proving the judge wrong,
but also wants to rewrite the amendment to offer bigger tax cuts.
The Senate is concerned more cuts could derail city and county
budgets. It prefers to let the court settle the question and to keep
the issue out of the special session to cut $1 billion out of state
spending.
Crist just wants to make good on campaign promises to lower taxes
for Floridians. Rewriting the amendment is the fastest way to get it
to voters.
The original amendment would have allowed a homeowner to write
off $195,000 of assessed value on their property up to $500,000. In
return, they would relinquish the Save Our Homes cap that limits a
homeowner's tax bill to a 3 percent increase per year.
Only current homeowners could keep the cap, and it would last
only as long as they stayed in their home. Eventually, Save Our
Homes would be eliminated.
But the amendment didn't say that -- it said it would preserve
and revise it. That's the misleading part.
It also said every homeowner would get at least a $50,000
exemption. That's the inaccurate part. Anyone keeping the assessment
cap would receive a $25,000 exemption.
Republican lawmakers knew their amendment was deceptive and that
it contained an error. They passed it anyway, wanting voters to
believe that Save Our Homes was safe even though the amendment
ultimately eliminated it.
They thought we wouldn't figure it out.
The only thing that stands between many Florida homeowners and an
apartment is the assessment cap. It's the guarantee that they can
afford their property taxes. At a recent public hearing in New
Smyrna Beach, folks figured it out, all right, and they were plenty
peeved. Monday, so was Chief Circuit Judge Charles Francis.
"The summary is just not correct," he wrote.
The state's appeal will likely end up in the Florida Supreme
Court. Unless the high court rules favorably before Oct. 28, the
question won't make it to the Jan. 29 ballot.
So Republicans, who control the Legislature, must choose. Take
their chances that the court will find for them or write a new
amendment.
But lawmakers have a third option. They could wait until the tax
commission they appointed this spring recommends how to fix
Florida's unequal tax system. Their solution could go on the
November ballot next year.
Meanwhile, chaos reigns. Will voters see tax reform on the ballot
in January or November or at all? Will the Legislature's solution
actually help homeowners?
Floridians are waiting for Crist, Pruitt and Rubio to turn from
mice into men and lead the state out of the mess they created.
Judge
Rejects Tax-cut Wording
Halts State Amendment Vote
By Marc Caputo
The Miami Herald
September 25, 2007
The biggest tax-cut vote in
state history has been blocked from the Jan. 29 ballot, for now,
after a Leon County judge ruled that the Legislature's proposed
constitutional amendment language was ''confusing'' and
''misleading'' to voters.
''Try as this court has,''
Circuit Judge Charles Francis wrote Monday, ``this Court cannot find
that the language is clear, concise, unambiguous and fair.''
The reason: The
Legislature's proposed ballot summary didn't tell voters that they
would be phasing out the popular Save Our Homes tax cap limiting
taxable homestead value increases at 3 percent a year. Instead, the
ballot summary said voters would be ''preserving'' and ''revising''
Save Our Homes.
Also, the ballot summary
said ''everyone'' would get a minimum $50,000 homestead tax
exemption. But the new exemption was meant to apply only to those
who would opt into the new system -- which calls for a maximum
$195,000 exemption on a home with a $500,000 assessed value.
The Legislature is sure to
appeal or fix the ballot language in the Oct. 3 special lawmaking
session concerning state budget cuts.
The man who brought the
suit, Weston Mayor Eric Hersh, urged the Legislature to quickly
correct the error, which stemmed from the rushed vote and secret
negotiations that produced the tax-cut package at a June lawmaking
session.
''This is a big opportunity
to make this right,'' Hersh said. ``They need to tell people this
eventually eliminates Save Our Homes. The problem is, they know it
won't pass if they do that.''
Already, polls show a
minority of voters favor the measure -- far short of the 60 percent
threshold needed to amend the Constitution. Gov. Charlie Crist and
House Speaker Marco Rubio of West Miami have announced separate
efforts that together could raise upward of $10 million to campaign
for the amendment.
None of the Republican
leaders -- Rubio, Crist and Senate President Ken Pruitt -- would say
what they plan to do next. Rubio said in a written statement that
the ballot summary ''accurately'' stated its purpose and vowed ``to
provide tax relief one way or another.''
Amendment Vote
Hersh, a Democrat, wants
citizens to vote on the amendment during the November general
election -- not during the Jan. 29 primaries. Fewer people are
expected to vote in January -- especially Democrats. Their national
party has said their vote in the presidential primary won't count
because the Florida party broke the rules by scheduling a vote so
early in the year.
One campaign already has
begun: The effort to stop Hersh. A Republican consulting firm, the
New Jersey-based David Millner Group, ran Comcast TV ads telling
viewers that Hersh needed to ``stop suing and start serving.''
Hersh is acting in his
private capacity. His attorney, Jamie Cole, argued before Francis
that the Legislature improperly set the date of the property-tax
vote. But Francis declined to rule on that because he invalidated
the ballot summary language itself.
Francis also ruled against
Hersh's contention that the Legislature overstepped its authority in
limiting the taxing authority of local governments through a system
of tax-rate rollbacks and caps.
That part of the two-phase
tax-cut package will yield less than the five-year, $15.6 billion
savings the Legislature projected because various local government
boards have taken super-majority votes to avoid steep cuts.
Democrats joined
Republicans to approve that part of the plan in June but balked at
the ''super-exemptions.'' Democrats worried about school cuts and
forcing people out of Save Our Homes if they saved even a dollar
under the new system.
Republican leaders changed
that provision to give homeowners an ''irrevocable'' option to avail
themselves of the super-exemption, dropping the estimated savings to
about $9 billion through 2012. But Republicans refused to change the
ballot summary language, even though House Democrats noted the
language appeared misleading.
Said House Democratic
leader Dan Gelber of Miami Beach: ``Well, this is what happens when
you rush things, limit debate and decide everything in secret. It
doesn't inspire confidence in the leadership of the Florida House.''
Miami Exempted
Gelber noted the
Legislature accidentally exempted Miami from a list of cities that
were to cut taxes the deepest.
Miami Republican Rep.
Carlos Lopez-Cantera said he's filing legislation to fix that and
hopes the constitutional amendment language will be fixed.
''If we're going to be up
there and we're going to take up the property tax issue, it kind of
makes sense to fix this, too,'' Lopez-Cantera said.
Miami Herald staff writer
Natalie P. McNeal contributed to this report.
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