Realty Blog

Part one (HB 1B, SB 2B)

Cuts the 2007-08 budget for nearly every special district, municipality and county next year by either 3, 5, 7 or 9 percent.

• Requires a 3 percent cut in the 2007-08 budgets of special districts known as municipal service taxing units, which provide medical or fire rescue services.

• Lets local governments avoid the cut and collect the same amount of property taxes as this year with a two-thirds vote of the governmental body.

• Lets local governments use the same tax rate as this year, which would result in more revenues due to increased values and new construction, with a unanimous vote.

• Requires a referendum to increase both revenues and the tax rate for 2007-2008.

• Requires the state to tell local governments by June 25 how much property taxes need to be cut, and requires the property appraiser to provide local governments with instructions about how to compute new tax rates.

• Requires local governments to verify the amount cut back to the state by July 2 or risk having elected local officials removed from office by the governor.

• Starting in 2009, caps property tax revenues for local governments at the rate of personal income growth in the state, which has averaged 4.2 percent during the past 20 years.

• Exempts special districts and municipalities less than five years old from the cap.

• For the 2008-09 budget, local governments would need a two-thirds vote to increase the cap by 67 percent of the rate of personal income growth. For example, if the rate was 3 percent, a two-thirds vote would be needed to increase that cap to 5 percent.

• For 2009-10 and future years, local governments would need a two-thirds vote to increase the cap to 10 percent.

• All local governments except those with boards of nine members or more require a unanimous vote of the governmental body or a referendum of the people to increase beyond 10 percent. Local governments with nine members or more would need a three-fourths majority to exceed the revenue cap beyond 10 percent.

• Withholds a half-cent sales tax for one year from local governments that violate the cap without a proper vote, unless local governments reduce the tax rate upon notification by the state.

• In the case of an improper tax increase, requires the tax collector to hold revenues that exceed the cap. Those revenues would be used the next year to reduce the tax rate.

• Requires governments to hold a hearing within 15 days of being notified of by the state of being in violation of the cap.

• Lets the director of the state Department of Revenue adopt emergency rules related to the changes or give local governments up to 21 additional days to comply with the changes this year.

• Removes protections from the tax cut for land-poor cities known as a municipality of special financial concern. Does not affect any cities in Palm Beach, Martin or St. Lucie counties.

• Exempts counties with a hospital surtax from reducing the tax rate that pays for a county public hospital. Applies to Miami-Dade County's Jackson Memorial Hospital.

Part two (HJR 3B, SJR 4B)

• Phases out Save Our Homes protections in exchange for increasing the $25,000 homestead exemption to 75 percent of the first $200,000 of home value plus 15 percent of the value from $200,001 to $500,000.

• Increases the $500,000 threshold by the rate of personal income growth each year.

• Lets the legislature increase the $500,000 threshold with a two-thirds vote.

• Sets the minimum exemption at $50,000.

• Gives low-income seniors a minimum exemption of $100,000.

• Gives businesses a $25,000 exemption for tangible personal property.

• Allows current homesteaders the choice of keeping their Save Our Homes benefits as long as they own their current home or of switching to the new 'super' exemption, regardless of which provides a greater tax savings. However, any switch to the new exemption is irrevocable.

• Land owned by a community land trust and used to provide affordable housing would be assessed based on the sale price, not on potential use.

• Creates an application process to classify property as workforce and affordable rental housing property. Such property would be assessed based on generated income.

• Penalizes owners who misrepresent their property as workforce or affordable rental housing with an interest rate of 15 percent on taxes due plus 50 percent of the taxes due.

• Lets lawmakers change how working waterfronts are assessed.

• To go into effect, still needs 60 percent of the vote in the statewide presidential primaries Jan. 29.