LTC 060-2007 New Property Tax Reform Proposal
lD
MIAMI BEACH
OFFICE OF THE CllY MANAGER
NO. LTC # r:m-2ffi7
LETTER TO COMMISSION
FROM:
Mayor David Dermer and Members of the City Com ission
Jorge M. Gonzalez, City Manager ~
March 5, 2007 0
TO:
DATE:
SUBJECT: NEW PROPERTY TAX REFORM PROPOSAL
The purpose of this LTC is to follow up on LTC No. 038-3007 (Property Tax Reform
Proposals) with information regarding the latest proposal on property tax reform. The
proposals described in the prior LTC included proposals that had the potential of effectively
reducing the City's operating millage rate from 7.374 to somewhere between 5.958 and
6.286. The latest proposal is excruciatingly more onerous than either of those or anything
else seen to date.
This proposal was released by House Speaker Marco Rubio and House Policy and Budget
Council Chairman Ray Samson, and proposes to place caps on revenue growth by both
State and local governments. Additionally, it would eliminate property taxes on homestead
property and replace it with a 2.5% increase of the sales tax.
Essentially, the proposal is a series of legislative changes effective July 1, 2007 and a
proposed Constitutional Amendment that would be presented to the voters in November
2007 for implementation for Fiscal Year 2008/09. The various elements of the proposal,
which was discussed at a February 23, 2007 workshop by the House Council on Policy and
Budget, are described below. Materials from that meeting are also attached.
Homestead Exemption
The proposal provides a total exemption from property taxes to homestead properties
beginning with 2008 tax bills. Currently, Homesteaded property in the City of Miami Beach is
valued at $3.629 billion, with approximately $25,249,720 in ad valorem taxes.
2006107
Homesteads $3,628,958,013
Non-Homesteads. $18,324,993,887
New Construction $785.995.928
Taxable Value $22,739,947,828
2007/08
$3,737,826,753
$19,241,243,581
$250.000.000
$23,229,070,335
2008/09
$0
$20,203,305,760
$200.000.000
$20,403,305,760
2009/10
$0
$21,213,471,048
$1.200.000.000
$22,413,471,048
.Existing Non-Homestead property taxable value growth projection of 5% annually
Proposed Limits to Local Government
. For property taxes levied for the fiscal year beginning in 2008, except school district
taxes, millage rates are limited to what they would have been had the limitation been
in place with 2000-2001 as the base year, and applied each year up to and including
2007.
Letter to Commission - Property Tax Reform
March 5, 2007
Page 2 of 8
. For the 2009/10 fiscal year and thereafter, millage rates are limited to the rolled-back
rate, plus the change in the Consumer Price Index for all urban consumers (CPI-U),
U.S. City Average (although the CPI-U is not necessarily indicative of cost of living
changes in Florida).
. Taxes may be levied in excess of the limitation, if approved by a unanimous vote of
the governing board adopting the millage rate.
. The limits do not apply to taxes for the payment of bonds, or for a 2-year period
when authorized by a vote of electors.
The Administration has conducted a preliminary analysis of how the millage rate would be
affected if rolled back to 2001, and then carried forward using the proposed roll-back rate
and CPI methodology (Attachment C). Although the City estimates that the rolled back rate
would be approximately 4.549 in 2008/09, the Agenda for the House Policy and Budget
Council included an estimate of the rolled back 2008109 millage for each city and county in
Florida, in which the estimate for Miami Beach's rolled back rate was 3.602 with an impact'of
$84 million (second highest in the State - a list of the top 18 hardest hit cities is attached as
Exhibit D). The potential impact of this proposal could be a reduction between 42-51 % in Ad
Valorem Tax collections, with the following impact to the General Fund Operating Budget:
Potential Impact Using Potential Impact Using
eMB Millage Estimate: House Millage Estimate:
CMB Ooeratino Budoet % from 06/07 CMB Ooeratino Budoet % from 06/07
2006/07 $237,673,096 2006/07 $237,673,096
2007/08 $174,201,905 -27% 2007/08 $169,469,647 -29%
2008/09 $178,182,890 -25% 2008109 $168,582,243 -29%
2009/10 $183,415,920 -23% 2009/10 $173,333,555 -27%
City Center RDA ICity TIFl % from 06/07 City Center RDA ICity TIFl % from 06107
2006/07 $18,991,324 2006/07 $18,991,324
2007/08 $10,105,535 -47% 2007/08 $9,476,287 -50%
2008109 $10,511,741 -45% 2008/09 $9,235,142 -51%
2009/1 0 $11,039,174 -42% 2009/10 $9,698,521 -49%
The City Center RDA would be impacted further due to reductions that will also occur to the
County's millage rate as well. The State estimates that the County Millage would be reduced
by approximately 35%. Total revenue to the City Center RDA for the current year is
estimated at approximately $33.8 million. This could be reduced as low as $16.5 million in
FY 2009110, a reduction of 49%.
This proposal may have an Impact of between $59-$84 million dollars to the City's
OperaUng Budget In the first year of Implementation, and an overall Impact as high as
$72 million by FY 200912010, not Including addlUonal revenue loss of future year
growth. The Impact to the City Center RDA could be between $16-11 million In each of
the first three years of Implementation, plus the loss of future growth.
Letter to Commission - Property Tax Reform
March 5, 2007
Page 3of8
Potential Impact to the Mlllaae Rate
City Operating
City Debt
School
Other/FIND/SoFia
County Operating
County Debt
Children's Trust
Librarv
Total
Current
7.374
0.299
8.105
0.736
5.615
0.285
0.4223
0.486
23.3223
State Proposed
3.602
0.299
8.105
0.736
3.649*
0.285
0.4223
0.486
17.5840
Under this proposal, although the City's millage is projected to be reduced by 51 % and the
County's by 35%*, the total tax rate for properties in Miami Beach will decline by 24.6%.
Therefore, while taxpayers would receive an approximately 25% reduction in their total
property tax bill, there could be a reduction to the operating budget for City services of up to
47%; these are the services that are the closest and most visible to the taxpayers. This could
have significant negative impacts on the taxpayers' perception of the value of City services
for tax dollars paid.
FY 2006107 City of Miami Beach General Fund Budaet
To put the impact of the latest proposal in perspective, the growth factors from FY 2005/06
to the FY 2006/07 General Fund Operating Budget and the FY 2006/07 General Fund
Expenditure Categories are detailed below:
Growth Factors
FY 2005106 Adopted Budget........................................................................................ $207,925,117
Maintain Current Service Level (CSL) in 06107 (8.1% increase).................................... $16,940,264
FY 2006/07 CSL Budget .............................................................................................. $224,865,381
Add~ional items:
Pension Restructure ..................................................................................................... $2,715,000
Service Enhancements ................................................................................................. $3,652,111
lntemal Service Fund Enhancements.............................................................................. $209,724
Increase of Homeowner's Dividend .............................................................................. $1,630,880
Absorbing part of WASD fee impact............................................................................. $1,000,000
Structural Enhancements ............................................................................................. $3,600,000
Adopted FY 2006107 Budget........................................................................................ $237,673,096
Exoenditure Cateaories
Mayor and City Commission ......$1,418,860
City Attorney............................... $4,319,400
Operations................................ $43,874,615
Citywide Accounts .................... $13,227,866
Homeowner's Div. Fund.............$4,900,Ooo
Admin Support ............................... $14,542,848
Econ. Dev. & Cultural Arts.............. $15,570,210
Public Safety ................................ $118,555,792
Cap. Renewal/Replacement ............ $3,525,086
Transfers (Reserve, Paygo, etc.)... $17,738,419
Potential eltv of Miami Beach Implications
Essentially, the two primary methods available to address are the ad valorem reductions
contemplated by the proposal are through service reductions and/or increased revenues. It
is too early to determine specific potential budget adjustments; however, at this point I
cannot state that public safety services will not be impacted. The budgeting impacts could
also severely impact the City's ability to respond to disaster scenarios and the adequate
proVision of services for major events. Increased revenues could be achieved through the
creation of new fees for service and/or increases of existing fees, fines, etc; however, this
conflicts with recent City policies, such as the reduction of Parks and Recreation fees.
Letter to Commission - Property Tax Reform
March 5, 2007
Page 4 of 8
Additional analysis of revenue enhancement opportunities from other sources may be
needed as the Legislature gets closer to the final recommendation of property tax reduction.
The proposal also impacts fiscal practices of the City, such as maintaining reserves and
continuing Paygo, capital expenditures, technology investments and capital upkeep
accounts. The proposal could remove the ability to continue budgeting capital projects as
pay-as-you-go expenses, and encourages the issuance of debt. However, due to factors
including covenants to budget, fund balances, coverage ratios, and potentially impacted
reserve levels, the City's credit rating could be negatively impacted.
Therefore, the proposal could force the City to Incur debt, while at the same time
Imposing restricUons on the City that Increase the cost of the debt the City Is forced
to Issue.
In addition the proposal ignores the upcoming GASB 45 (Retiree Health Insurance Cost)
requirement which forces all local govemment agencies to reflect the accrued liability and
establish a plan to fund it. For Miami Beach this liability could exceed $100 million.
The proposal is intended to free up money to the taxpayers, allowing it to flow in the
economy. However, local govemment is already one of the best generators of local
economic activity; whether it is by paying wages, purchasing goods, or investing hundreds of
millions of dollars in construction projects, the vast majority of local govemment investment
and spending is done in the local economy. It is doubtful that the additional spending that is
'freed-up' for infusion to the local economy would match the level currenUy achieved by local
governments. It could even result in a net decline of local economic activity as higher net
worth individuals shift some of their savings into other investment vehicles.
Proposed Sales Tax Increase
If the elimination of taxes on homestead property is passed by the voters, the state sales tax
will be increased by 2.5 cents to offset some revenue losses to local governments, schools,
and other entities.
The Administration understands that this revenue will be distributed based on a formula that
takes into account the amount collected in each jurisdiction, and the impact to that
jurisdiction of the elimination of the property tax on homesteads. Since Miami Beach has
fewer homesteads (as a percentage) than most jurisdictions, the proposed formula will likely
negatively impact the City. Inclusion of population as a factor in the formula will further erode
the amount the City would potentially receive. CMB will not receive the full 2.5% sales tax
generated within the City; however, the Administration has not seen a proposed formula at
this time.
This proposal will not offset the revenue losses that occur due to the elimination of the
property tax on homesteads. The amount of property taxes collected from homesteaded
property in Miami Beach for the current fiscal year is $25,249,720 in City tax, and
$82,040,053 in taxes paid to all taxing authorities. In order to offset this amount with an
additional 2.5% sales tax, $3.4 billion in taxable sales would have to take place in Miami
Beach in 2009, and 100% of the incremental sales tax would have to stay within the taxing
jurisdiction. Current taxable sales in Miami Beach are estimated to be approximately $2.1-
$2.4 billion.
Under the proposal, however, the distribution formula would not be finalized until the 2008
Letter to Commission - Property Tax Reform
March 5, 2007
Page 5 of 8
Legislative Session, following its authorization by voters in November 2007. This provides
significant opportunity for further erosion of the Miami Beach share, given the length of time
between implementation of the more onerous parts of the proposal on the front end, and the
promise of partial relief sometime in the future. Due to the reduced local revenues as well as
the proposed limits on state spending, cities and counties will end up competing with each
other and with school districts for their fair share of the offsetting sales tax revenue as the
yet-to-be-released distribution formula is developed.
Limitation on State Revenue Growth
1. Changes the current state revenue limitation to limit growth in state revenues to the
growth in population and inflation.
2. Includes state revenues needed to match Medicaid within the limitation.
3. For the 2008/09 fiscal year, state revenues are limited to the state revenues that
would be allowed under the formula, if the formula had been in place since 2001/02,
with 2000/01 as the base year.
4. The state revenue limitation may be exceeded in any year by a 2/3 vote of the
membership of each house.
5. State revenues collected in excess of the limitation may be deposited in the Budget
Stabilization Fund or used for local government tax relief.
Please note that unlike the local government requirement for a unanimous vote of the
governing body to exceed the millage cap, the Legislature can exceed their cap with
only a 2/3 vote.
Impact on Renters
While this proposal could deliver tax savings to property owners of up to 25%, renters (2/3 of
Miami Beach households) will not realize proportionate savings, assuming that /andlords
pass on 100% of their tax savings, which is highly unlikely.
Rent Savings
$857.43 $49.77
$1,523.96 $54.53
Median
Average
Percent
5.8%
3.6%
Economists generally consider the Sales Tax to be a regressive tax, with a higher
proportionate impact on lower income households as well as renters, notwithstanding the
exemptions on food and medicine.
Non-Homestead Property
The proposal to eliminate property taxes on homestead property provides an incentive for
property owners to designate their non-homesteaded properties as their homestead, and as
such a proposal like this is incomplete without enforcement provisions and severe penalties
for fraud. The likelihood of this occurring cannot be predicted; however, the table below
demonstrates the incentive:
Average Taxable Value
Average Tax Paid (all tax authorities)
Number of Properties
Total Taxable Value
Total Taxes Paid (all tax authorities)
Total Taxes Paid (CMB only)
Non-Homestead
Single Family Home
$1,602,830
$37,381
1,184
$1,897,751,262
$44,259,924
$13,994,018
Non-Homestead
Condominium
$308,959
$7,205
26,097
$8,062,893,051
$188,045,211
$59,455,773
Letter to Commission - Property Tax Reform
March 5, 2007
Page 6 of 8
Other Fundina Impacts
There is significant potential for additional negative impacts to local govemments as the cuts
due to the proposed limitation on state revenue are applied to state programs. These cuts
could reduce funding that has traditionally been available to local govemments through grant
programs, and they could also continue the shift of additional responsibility from the state to
the local level.
For the current year, House Speaker Marco Rubio has already advised House members
(attached) thatfunding for member projects (Community Budget Issue Requests) will not be
available in this year's State budget. House Council Chairs have been directed that in order
to fund member projects, funds must be provided through a cut to programs in the Council's
continuation budget which funds existing service delivery.
An InteresUng point In the Speaker's memo on member project funding Is that the
largest decline of general revenue funds so far this year Is from sales tax collecUons,
which Is precisely the fiuctuation-prone source that Is proposed to replace a more
consistent and stable form of revenue (property tax).
The point has also been made that property tax is not the only source of revenue for local
govemments (revenue sharing, gas tax, etc). However, some of the other sources of
revenue have also been targeted through state legislation in the past, such as the
communications services tax, as well as efforts to eliminate local cable and telephone
franchises. There is no reason to believe that efforts to reduce and/or eliminate these other
statutorily authorized taxes will not continue in the future.
Additionally, the proposed limitations on local govemment revenue will have significant
impact on the City's ability to leverage local funds into additional funding assistance by
providing a match for state and federal grant programs, as well as reducing the ability to
demonstrate a high local cost share when the City pursues Federal earmarks.
Local funding assistance is also being reduced by the Federal government. Two weeks ago,
the U.S. Senate approved legislation that had already passed the House which revised the
Section 8 Housing formula, resulting in a negative impact of over $28 million to the State of
Florida, $9.5 million to Miami-Dade County, and $1.6 million to the Miami Beach Housing
Authority.
The President's Budget includes significant cuts to local government programs, including:
Federal Proaram
CDBG
State Clean Water Revolving Loan Fund
Homeland Security
Local and State Law Enforcement
Current
$4.2B
$1.1B
$2.7B
$1.8B
ProDOsed
$3B
$688M
$1.9B
$542M
Economic Development Proarams
Local govemments will also have to carefully consider their participation in the State's
economic development programs (assuming these programs survive the State budget cap).
The ability to provide a local match for State programs such as the Govemor's Quick Closing
Fund and the Innovation Fund will essentially be eliminated, limiting the State's ability to
attract new investment such as Scripps and Torrey Pines. In fact, this proposal will require
careful evaluation of their commitment to the Torrey Pines project by the City of Port St.
Lucie. These programs require a significant local funding commitment ($1 0+ million) in order
Letter to Commission - Property Tax Reform
March 5, 2007
Page 70f8
to participate; however, this program will cause local business recruitment efforts throughout
the state to shift from high-tech, bio-medical research type establishments to sales tax
producing businesses. for which the State provides very little in terms of incentives.
Other important economic development programs that could be impacted are the local
incentives through Enterprise Zone and Historic Property programs that provide property tax
abatements and/or credits to encourage private capital investment and rehabilitation.
It will also be difficult for CRAs to effectively administer either tax increment financing or pay-
as-you-go, since the imposition of the roll-back rate + CPI could restrict increment growth to
less than 5% per year and reduce the ability of new CRAs to issue debt for projects that
would spur new investment. In fact, this proposal could all but eliminate CRAs as an
effective redevelopment tool in Florida, given last year's elimination of eminent domain
authority and this proposal's impact on tax increment financing.
eoncluslon
This proposal discourages a number of growth management and fiscally responsible
practices:
. Rewards the issuance of debt and punishes Pay-As-You-Go while increasing the
cost of debt and/or causing bond defaults;
. Provides a disincentive to implement growth management initiatives, since new
construction will be the only way to increase the tax base, even as funding to service
the new growth will be restricted;
. Diminishes the effectiveness of economic development programs, while at the same
time local govemments try to attract sales-tax producing businesses;
. Provides an incentive for fraudulent homestead claims;
. Partially replaces a stable revenue source with one prone to unpredictable
fluctuations;
. Effectively eliminates Home Rule with the concept that lawmakers in Tallahassee
understand how to address local needs better than local elected officials.
The House Council on Policy and Budget will conduct another WOrkshop on this proposal on
March 9, 2007, and floor vote by the House could take place as early as March 23, 2007.
The Council anticipates local government input at the March 9th workshop, most likely by the
Florida League of Cities and the Florida Association of Counties.
Information on this issue such as proposed legislation, newspaper articles from around the
state, and other related documents can be found on the City's website, at the Legislative
Affairs link from the E-Govemment tab.
At this point, this is only a proposal from the House of Representatives, and it appears to
have only 'lukewarm' reception outside of those chambers. The Administration has been and
will continue communication with the City/County Managers Association and the League of
Cities as well as other municipalities and CRAs regarding this issue. Additionally, staff has
been advised of this issue and has been directed to evaluate the implementation of any new
initiatives until the City receives clear direction on the final property tax reform initiatives. In
the meantime, please contact me if you have any questions or comments.
JMG/KB/kc
C: Executive Staff, Management Team
F:IECON\$ALLIKEVIN\LegIoIatlve PricxitloslState LogIsIative\2007 _\Property Tax\propefIy tax Itc '.doc
Letter to Commission - Property Tax Reform
March 5, 2007
Page 80f8
Attachments
Attachment A - Projections Based on Roll-Back Millage Rate with CMB Estimates
Attachment B - Projections Based on Roll-Back Millage Rate with House Estimates
Attachment C - Schedule of Projected Roll-Back Rates 2001-2009
Keep Local Taxes Local- Florida League of Cities
House Majority Office Press Release
Speaker Memo on Funding for Member Projects
House Council on Policy and Budget Materials:
Constitutional Amendment Overview
Statewide Impacts
Miami-Dade County Relief Package
Rate Reduction Proposal Estimated County Government Impacts
Rate Reduction Proposal Estimated Municipal Impacts (CMB page only)
Proposed House Joint Resolution
LTC No. 038-3007 Property Tax Reform Proposals, February 8, 2007
Attachment A
Projections Based Rolled Back Millage Rate with CMB Estimates
2006107 2007/08 2008/09 2009/10
Homestead $ 3,628,958,013 $ 3,737,826,753 $ $
Non Homestead $ 18,324,993,887 $ 19,241,243,581 $ 20,203,305,760 $ 21,213,471,048
Total Existing Values $ 21,953,951,900 $ 22,979,070,335 $ 20,203,305,760 $ 21,213,471,048
New Construction $ 785,995,928 $ 250,000,000 $ 200,000,000 $ 1,200,000,000
Taxable Value $ 22,739,947,828 $ 23,229,070,335 $ 20,403,305,760 $ 22,413,471,048
CPI 3.00%
Millage 7.374 3.8412 4.5490 4.3488
Ad Valorem Tax $ 161,815,422 $ 86,104,129 $ 89,565,201 $ 94,059,188
Change from 06/07 -47% -45% -42%
City Center RDA $ 18,991,324 $ 10,105,535 $ 10,511,741 $ 11,039,174
Change from 06/07 -47% -45% -42%
General Fund
Ad Valorem Operating $ 129,064,617
Capital R&R $ 3,266,096
Total Operating Ad Valorem $ 132,418,662 $ 71,753,799 $ 74,638,040 $ 78,383,048
Change from 06/07 -46% -44% -41%
South Pointe Ad Valorem $ 7,977,241 $ 4,244,796 $ 4,415,421 $ 4,636,967
Change from 06/07 -47% -45% -42%
Other Revenues
Franchise Taxes $ 8,675,000 $ 8,735,725 $ 8,796,450 $ 8,858,025
Utility Taxes $ 13,478,300 $ 13,572,648 $ 13,666,996 $ 13,762,665
Business Licenses $ 3,720,000 $ 3,727,440 $ 3,734,880 $ 3,742,350
Permits $ 9,305,335 $ 9,323,946 $ 9,342,556 $ 9,361,241
Intergovernmental Revenue
Sales Tax Proceeds $ 2,100,000 $ 2,690,195 $ 3,280,390 $ 4,202,328
6 cent local option gas $ 1,280,000 $ 1,268,480 $ 1,256,960 $ 1,245,647
3 cent local option gas $ 475,000 $ 470,725 $ 466,450 $ 462,252
Motor Fuel Tax $ 830,000 $ 822,530 $ 815,060 $ 807,724
Local Gov't 1/2 Cent Sales Tax $ 6,120,000 $ 6,133,078 $ 6,146,156 $ 6,159,290
Other Intergovernmental $ 355,640 $ 352,439 $ 349,238 $ 346,095
Charges for Service
General Govemment $ 180,000 $ 180,180 $ 180,360 $ 180,540
Public Safety $ 1,707,500 $ 1,709,208 $ 1,710,915 $ 1,712,626
Culture and Recreation $ 5,602,850 $ 5,608,453 $ 5,614,056 $ 5,619,670
Fines and Forfeits $ 1,826,000 $ 1,838,782 $ 1,851,564 $ 1,864,525
Interest Eamings $ 5,300,000 $ 5,326,500 $ 5,353,000 $ 5,379,765
Rents and Leases $ 2,934,251 $ 3,022,279 $ 3,110,306 $ 3,203,615
Miscellaneous $ 6,013,515 $ 6,019,529 $ 6,025,542 $ 6,031,568
Other Intergovernmental $ 27,373,802 $ 27,401,176 $ 27,428,550 $ 27,455,978
Total General Fund $ 237,673,096 $ 174,201,905 $ 178,182,890 $ 183,415,920
Change from 06/07 -27% -25% -23%
Attachment B
Projections Based on Rolled Back Millage Rate with House Estimates
2006107 2007/08 2008/09 2009/10
Homestead $ 3,628,958,013 $ 3,737.826,753 $ $
Non Homestead $ 18,324,993,887 $19,241,243,581 $ 20,203,305,760 $21,213,471,048
Total Existing Values $ 21,953,951,900 $ 22,979,070,335 $ 20,203,305,760 $ 21,213,471,048
New Construction $ 785,995,928 $ 250,000,000 $ 200,000,000 $ 1,200,000,000
Taxable Value $ 22,739,947,828 $ 23,229,070,335 $ 20,403,305,760 $ 22,413.471,048
CPI 3.00%
Millage 7.374 3.8412 3.601 3.4425
Ad Valorem Tax $ 161,815,422 $ 86,104,129 $ 70,900,773 $ 74,458,262
Change from 06/07 -47% -56% -54%
City Center RDA $ 18,991,324 $ 10,105,535 $ 8,321,207 $ 8,738,728
Change from 06/07 -47% -56% -54%
General Fund
Ad Valorem Operating $ 129,064,617
Capital R&R $ 3,266,096
Total Operating Ad Valorem $ 132,418,662 $ 71,753,799 $ 59,084,272 $ 62,048,861
Change from 06/07 -46% -55% -53%
South Pointe Ad Valorem $ 7,977,241 $ 4,244,796 $ 3,495,295 $ 3,670,673
Change from 06/07 -47% -56% -54%
Other Revenues
Franchise Taxes $ 8,675,000 $ 8,735,725 $ 8,796,450 $ 8,858,025
Utility Taxes $ 13,478,300 $ 13.572,648 $ 13,666,996 $ 13,762,665
Business Licenses $ 3,720,000 $ 3,727,440 $ 3,734,880 $ 3,742,350
Permits $ 9,305,335 $ 9,323,946 $ 9,342,556 $ 9.361,241
Intergovernmental Revenue
Sales Tax Proceeds $ 2,100,000 $ 2,690,195 $ 3,280,390 $ 4,202,328
6 cent local option gas $ 1,280,000 $ 1,268,480 $ 1,256,960 $ 1.245,647
3 cent local option gas $ 475,000 $ 470,725 $ 466,450 $ 462,252
Motor Fuel Tax $ 830,000 $ 822,530 $ 815,060 $ 807,724
Local Gov't 1/2 Cent Sales Tax $ 6,120,000 $ 6,133,078 $ 6,146,156 $ 6,159,290
Other Intergovernmental $ 355,640 $ 352,439 $ 349,238 $ 346,095
Charges for Service
General Government $ 180,000 $ 180,180 $ 180,360 $ 180,540
Public Safety $ 1,707,500 $ 1,709,208 $ 1,710,915 $ 1,712,626
Culture and Recreation $ 5,602,850 $ 5,608,453 $ 5,614,056 $ 5,619,670
Fines and Forfeits $ 1,826,000 $ 1,838,782 $ 1,851,564 $ 1,864,525
Interest Earnings $ 5,300,000 $ 5,326,500 $ 5,353,000 $ 5,379,765
Rents and Leases $ 2,934,251 $ 3,022,279 $ 3,110,306 $ 3,203,615
Miscellaneous $ 6,013,515 $ 6,019,529 $ 6,025,542 $ 6.031,568
Other Intergovernmental $ 27,373,802 $ 27,401,176 $ 27.428,550 $ 27,455,978
Total General Fund $ 237,673,096 $ 174,201,905 $ 161,708,996 $ 166,115,439
Change from 06/07 -27% -32% -30%
Attachment C
Schedule of Projected Roll-Back Rates 2001.2009
Rolled Back Ad
Valorem Collection New Construction
Taxable Value Estimate CPI Roll Back + CPI Value
2000/01 $ 8,100.000,000 $ 59,121,900
2001/02 $ 9,500,000,000 $ 62.273.795 1.58% 6.5551 $ 338.232,674
2002103 $ 10.560,000.000 $ 65,591,955 2.28% 6.2114 $ 305,716,104
2003104 $ 12,094.166,000 $ 70,140,558 2.66% 5.7995 $ 483,118,130
2004105 $ 14,040,817,000 $ 74,365.060 3.39% 5.2983 $ 348.941,191
2005106 $ 17,445,766.000 $ 80.575,590 3.23% 4.6166 $ 825,278,283
2006107 $ 22,739,947,828 $ 85,695,905 2.68% 3.7685 $ 785,995,928
2007/08' $ 23,229.070,335 $ 89,227,077 3.00% 3.8412 $ 250,000,000
2008109' $ 20.403.305,760 $ 92,813,680 3.00% 4.5490 $ 200.000,000
'2008 and 2009 projected taxable values are based on five percent growth of non-homestead property.
and the elimination of property tax on homesteads In the 2009 budget year.
2008 and 2009 CPI is estimated at 3% for the purpose of this analysis
The roIl-back rate increases in 2009 based on a reduced tax base due to offset the elimination of the
property tax on homesteads.
Florida House of Representatives
HOUSE MAJORITY OFFICE
402 South Monroe Stred
Tallahassee. Florida
32399-1300
Marty Bowen
Majority Leader
322 The Capitol
(850) 488-1993
FOR IMMEDIATE RELEASE
February 21, 2007
CONTACT: Alberto Martinez
(850) 488-1993
SPEAKER RUBIO, HOUSE LEADERS PROPOSE
RESPONSIBLE, IMMEDIATE PROPERTY TAX
RELIEF
House Plan rolls back property tax rates this year, caps the rate of revenue growth of state and
local government, limits prbperty tax increases on non-homestead property and eliminates all
property taxes on homestead properties
TALLAHASSEE, FL - Following through on their 100 Ideas efforts, House Speaker Marco
Rubio, Chairman Ray Sansom, and other House leaders this morning unveiled a comprehensive
property tax relief proposal designed to cut Floridians' property tax bills by nearly 20 percent
this year. In addition to reducing property tax bills by nearly one-fifth, the House leaders' relief
plan caps the rate of revenue growth for both state and local government at reasonable levels and
gives voters the option of abolishing property taxes on homestead properties and replacing it
with a modest increase in the sales tax.
"When we traveled the state last year listening to Floridians' ideas, we heard a common refrain.
Property taxes have grown so burdensome that homeowners and business owners fear being
forced out of the homes and businesses that they have worked so hard to build," said Speaker
Marco Rubio (R-Miami). "Floridians were adamant: timid tweaks to the status quo will not do.
Our proposal is a bold idea that provides comprehensive reform and meaningful tax relief to all
Florida property owners."
Bringing real property tax relief to Floridians was Idea 96 in the House's 100 Innovative Ideas
for Florida's Future.
"Government should not grow faster than its citizens' ability to afford it, but that is exactly what
has happened throughout Florida these past few years," added Representative Ray Sansom (R-
Destin). "We want to make sure that taxpayers are getting value from government. Our plan
recognizes that it doesn't matter how much money government spends, but how wisely it spends
the money it collects that really counts. Our plan will ensure all governments in Florida spend
smarter and are more accountable to the taxpayers."
(more)
House Leaders Propose Property Tax Relief
February 21, 2007
Page 2
"Property tax relief is about more than just the money," said House Majority Leader Marty
Bowen (R-Haines City). "It's about bringing financial security to Florida's families. It's about
giving peace of mind to homeowners and business owners that property taxes will not force them
to abandon their plans and dreams for their families' future."
Parts of the tax relief proposal will be workshopped in the House this week in the Committee on
State Affairs on Wednesday and the Policy & Budget Council on Friday. The components of the
House's plan are described below:
Meanin!!ful Propertv Tax Relief This Year
1. Effective July I ofthis year, property taxes for Floridians will be reduced by nearly 20%.
2. With an adjustment forward for a reasonable increase in the size and cost of government,
local government millage will be reduced to a rate generating the same tax revenue as was
generated in the previous year.
3. The rate of growth for government will be determined by population growth plus inflation set
off a base year of 2000-2001.
4. Local governments may choose to raise revenues above the capped rate through a unanimous
vote of their governing body. These limits do not apply to taxes levied for school districts, for
bond repayments, or for a two-year period when authorized by a vote of electors.
5. School district revenues would not be rolled back.
Propertv Tax Reform Constitntional Amendmeut
1. In a 2007 special election, voters would have the option of eliminating all property taxes on
homestead property.
2. In addition to eliminating property taxes on homestead property, starting in Fiscal Year 2008-
09, state revenue growth would be limited to a reasonable amount that would be allowed
under a prescribed formula that accounts for population growth and inflation since 2001-
2002.
3. For the first time, Medicaid revenues would be placed within the revenue growth limitation.
Currently these revenues are excluded from the state's revenue limitation.
4. The state revenue limit may be exceeded in any year by a 2/3 vote of each legislative
chamber.
5. The constitutional amendment would also limit the continued rapid expansion oflocal
government by containing millage to a rate that produces the same tax revenue as was
generated in the previous year plus population growth and inflation, excluding new
construction and annexation. The revenue cap rnay be exceeded through a unanimous vote of
the governing body.
6. School districts would not see their budgets reduced under the House's plan. The future
growth of school district budgets from property tax revenues would be limited by the
amendment, but state government could choose to put more state revenue into schools.
Abolish;n!! Property Taxes on Homestead Propertv
1. Ifthe elimination of taxes on homestead property is passed by the voters, the state sales tax
will be increased by 2.5 cents on all transactions subject to sales tax to offset revenue losses
to local governments, schools and other entities that used property tax revenues.
(more)
House Leaders Propose Property Tax Relief
February 21, 2007
Page 3
2. This additional sales tax will be used to replace revenues lost due to the Constitutional
Amendment.
3. This replacement revenue will only be implemented if voters approve the Constitutional
Amendment that exempts homestead property from property tax.
Statewide Savinl!s for Property Owners Under House Property Tax Relief Plan
Statewide Savings This Year
$5.77 Billiou Total
Average Taxpayer Savings
Homestead Property Owner:
Non-Homestead Residential Property Owner:
Commercial Property Owner:
19% Total Savings
$433
$767
$3,353
Statewide Savings Upon Passage of Constitutional Amendment
$13.55 Billion Total Property Tax Reduction
$7.78 Billion iu Sales Tax Replacement
$5.77 Billion in Total Tax Savings
A verage Taxpayer Savings
Homestead Property Owner:
Non-Homestead Residential Property Owner:
Commercial Property Owner:
$2,283
$767
$3,353
A veral!e Savinl!s in Selected Localities
Property Tax Relief This Year
Broward County
Ft. Lauderdale
Homestead Property
Owner
$290
$ 539
Miami-Dade
Couuty
City of Miami
$490
$ 1,007
Duval County
$ 91
Escambia Couuty
Pensacola
$ 114
$166
Nou-Residential
Homestead
.
.
$ 912
$ 1,873
$110
$ 213
$ 309
(more)
%
Commercial Saviugs
$ 3,571 13
$ 6,646 19
$ 4,356 21
$ 8,949 29
$ 577 5
$ 804 11
$ 1,166 12
House Leaders Propose Properly Tax Rei ief
February 21. 2007
Page 4
Homestead Property Non-Residential cyt.
Owner Homestead Commercial Savings
Hillsborough
County $ 324 $ 403 $ 2,846 14
Tampa $ 533 $664 $ 4,685 18
Lee County $ 471 $ 863 $ 3,948 21
Cape Coral $ 926 $ 1,695 $ 7,754 31
Leon County $ 140 $ 149 $ 963 8
Tallahassee $ 268 $ 286 $ 1,849 13
Orange County $ 247 $ 377 $ 3,393 12
Orlando $ 403 $ 615 $ 5,527 14
Palm Beach
County $ 519 $ 833 $ 4,978 18
West Palm Beach $ 1,059 $ 1,701 $ 10,163 25
Pinellas County $ 319 $ 566 $ 2.627 17
St. Petersburg $ 526 $ 935 $ 4,338 20
* not available at this time
Property Tax Relief Upon Passage of Constitutional Amendment
Broward County
Ft. Lauderdale
Homestead Property
Owner
$ 2213
$ 2867
Non-Residential
Homestead
*
*
Commercial
$ 3,571
$ 6,646
Miami-Dade
County
City of Miami
$ 2354
$ 3514
$ 912
$ 1,873
$ 4,356
$ 8,949
Duval County
$ 1791
$ 110
$ 577
Escambia County
Pensacola
$ 1034
$ 1331
$ 213
$ 309
$ 804
$ 1,166
Hillsborough
County
Tampa
$ 2279
$ 3009
$ 403
$ 664
$ 2,846
$ 4,685
(more)
House Leaders Propose Property Tax Relief
February 2],2007
Page 5
Homestead Property Non-Residential
Owner Homestead Commercial
Lee County $ 2269 $ 863 $ 3,948
Cape Coral $ 30 J3 $ 1,695 $ 7,754
Leon County $ 1727 $ 149 $ 963
Tallahassee $2115 $ 286 $ 1,849
Orange County $ 2099 $ 377 $ 3,393
Orlando $ 2846 $ 615 $ 5,527
Palm Beach
County $ 2879 $ 833 $ 4,978
West Palm Beach $ 4285 $ 1,701 $ 10,163
Pinellas County $ 19]4 $ 566 $ 2,627
St. Petersburg $ 2624 $ 935 $ 4,338
* not available at this time
###
The Florida House of Representatives
MEMORANDUM
To: Members, Florida House of Representative
From: Marco Rubio, Speaker MI"-
Date: 02/19/2007
Re: Funding for Member Projects
Dear fellow members:
You may have recently read in the news clips some comments Chairman Sansom made
to the freshman class regarding funding for member projects. Chairman Sansom and I
had talked about this earlier in the week and I completely agree with his assessment of
the situation. Based on our conversation I would like to take this opportunity to layout in
more complete detail where Chair Sansom and I are on the budget, and to describe the
House policy regarding funding for member projects this session.
In preparing our budget, we must be mindful of the two new constitutional requirements
enacted by the voters last fall. Article III, Section 19, of the Florida Constitution requires
.Unless approved by a three-fifths vote of the membership of each house, appropriations
made for recurring purposes from nonrecurring general revenue funds for any fiscal year
shall not exceed three percent of the total general revenue funds estimated to be
available at the time such appropriation is made." In addition, the constitution requires us
to prepare a long range financial outlook.
With these two new requirements in mind, the first thing we need to know to prepare our
budget is how much revenue we have available to spend. Last November our revenue
estimating conference reduced the estimate for recurring general revenue for fiscal year
2007-2008 by approximately $467 million dollars. Since that time, we have had three
months of actual collections. The downward trend in these collections suggests that the
forecast may need to be reduced even further.
Actual Collections for the month of January were nearly $108 million dollars below the
official estimate. Cumulatively for the three months - November, December and January -
general revenue collections were close to $160 million dollars below the estimate. The
largest decline comes from sales tax collections, representing $70 million of the January
shortfall and $165 million of the total revenue loss.
There will be one more month of actual collections before the next official General
Revenue Estimating Conference in March. If this downward trend continues during
February, the general revenue estimate will likely be reduced. We do not know the
418 The Capitol, 402 South Monroe Street, Tallahassee, Florida 32399.1300
02/19/2007
Page 2
amount of the reduction, but it could be significant. The official forecast from the March
conference will be used in preparing our budget this spring.
My purpose in sharing this information with you is to be as transparent as possible about
our budget situation. I have already begun to discuss budget priorities with our council
chairs. Based on this most recent revenue collection data and the potential for a
downward revision in our revenue estimates, one possible scenario is that we will have
only enough revenue to fund a continuation budget.
The good news is that a continuation budget means that each council will be given a
spending allocation which is sufficient to continue traditional levels of service delivery.
We will have adequate revenues to fully fund priorities like enrollment growth in K-12,
Medicaid, KidCare, safety and security needs, and ongoing environmental programs like
Florida Forever.
The bad news is that a continuation budget does not include funding for program
expansions, new initiatives, or member projects. If a council determines that it wants to
fund new priorities including member projects, this must be accomplished through making
reductions to the continuation budget. Thus, it will be up to each council chair to
determine whether to fund member projects through the elimination of items in the
continuation budget.
We will not know the actual amount of money available for budget priorities until after the
mid March General Revenue Estimating Conference. Hopefully, the scenario will be
brighter than the one I have outlined here. However, if the reduction in the general
revenue estimate is very large, we may have to make reductions to the continuation
budget.
Regardless of how the revenue projections come out, I am confident of the House's
commitment to passing a sound budget which funds the state's priorities, stays below the
constitutional 3 percent threshold for the expenditure of non-recurring revenue on
recurring programs, and carries forward sufficient revenue to balance the budget in future
years without raising taxes. Given the awesome talent of this great institution, I know that
the Florida House of Representatives will pass a budget which meets these requirements
with flying colors.
Thank you for taking the time to review this information and I will continue to update you
as new information becomes available on the budget.
CONSTITUTIONAL AMENDMENT
I. PROVIDES A TOTAL EXEMPTION FROM PROPERTY TAXES TO
HOMESTEAD PROPERTIES BEGINNING WITH 2008 TAX BILLS.
II. LIMITS LOCAL GOVERNMENT AND SCHOOL DISTRICT MILLAGE RATES
BEGINNING IN 2008.
A For the 2009-2010 fiscal year and thereafter, millage rates are limited to
the rolled-back rate, plus change in the Consumer Price Index.
B. For property taxes levied in 2008, except school district taxes, millage
rates are limited to what they would have been had the limitation been in
place with 2000-2001 as the base year.
C. Taxes may be levied in excess of the limitation, if approved by a
unanimous vote of the governing board adopting the millage rate.
D. The limits do not apply to taxes for the payment of bonds, or for a 2-
year period when authorized by a vote of electors.
III. 2.5% SALES TAX FOR DISTRIBUTION TO LOCAL GOVERNMENTS
BEGINNING ON JUL Y1. 2008.
IV. LIMITATION ON STATE REVENUE GROWTH BEGINNING IN 2008
A. Changes the current state revenue limitation to limit growth in state
revenues to the growth in population and inflation.
B. Includes state revenues needed to match Medicaid within the
limitation. The current limitation excludes these revenues.
C. For the 2008-2009 fiscal year, state revenues are limited to the state
revenues that would be allowed under the formula, if the formula had been
in place since 2001-2002, with 2000-2001 as the base year.
D. The state revenue limitation may be exceeded in any year by a 2/3
vote of the membership of each house.
E. State revenues collected in excess of the limitation may be deposited
in the Budget Stabilization Fund or used for local government tax relief.
V. SPECIAL ELECTION 2007
STATE WIDE IMPACTS
2
3
,
5
5
7
.
9
10
11
12
13
14
15
Relief Packaoe
r Cui tax rale. to Rolled Back Rate + CPllnflalion carried forward from FY I
2000-01.
Tax Rates
Government Type Current ProDosed %Oiff
County Government (Non-debt) 6.864 4.856 -29%
Cities 4.643 2.889 -38%
Independent Special Districts 1.551 0.924 -40%
Schools (Non-debt) 7.358 7.358 0%
Aaareaate Averaae Tax Rate 18.472 14.971 -19%
TOTAL TAX RELIEF I $5.8 Billlion I
Reoresentativ8 TaXDIVer Imoacts:
Non-
Homestead Commercial
Homestead Residential Ilndus!r!al
Taxable Value:
Average $ 123.596 $ 219,105 $ 957.778
Average State Taxpayer:
Tax Savings:
Average $ 433 $ 767 $ 3.353
Savings % 19% 19%
16
17
18
"
20
21
22
23
"
25
26
27
28
Reform Packa e
Eliminate Rolled Back Property Taxes and School Taxes on Homestead Property
and Replace with Sales Tax
29
30 TOTAL ADDITIONAL PROPERTY TAX RELIEF
31
32
33
..
35
36
$7.8 Billlion
Salea Tax Replacement:
Tax rate Increase
Amount (BiI $)
2.2%
7.78
Re resentatlye Tax a er 1m acts:
37
36
39
40
"
42
43
"
"
"
"
"
"
Homestead
Non-
Homestead Commercial
Residential !Industrial
Property Tax Reduction:
Average $ 1.850 $
Sales Tax Replacement:
Household w!lncome $30k - $40k $ 420
Household w!lncome $50k - $70k $ 580
$30,000 Automobile Purchase $ 750
$
Total Plan
50
51
52
TOTAL PROPERTY TAX RELIEF 1$13.6 Billlionl
SALES TAX REPLACEMENT -I $7.8 BUllion I
---------
----------- -
NET TAX REDUCTION = I $5.8 Blllllon 1
Reoresentatlye Taxoa\ler Impacts:
Non-
Homestead Commercial
Homestead Residential !Industrlal
Property Tax Reduction:
Average $ 2.283 $ 767 $ 3,353
Sales Tax Replacement:
Household wI Income $30k - $40k $ 420
Household wI Income $50k - $70k $ 580
$30,000 Automobile Purchase $ 750
53
"
55
56
57
,.
59
60
51
62
63
Tax Rates (mills)
Government Tvoe Current Proposed %Diff
County Government (Non-debt) (1) (2) 8.264 5.386 -35%
Cities 6.049 3.428 -43%
Independent Special Districts (2) 1.042 0.382 -63%
Schools (Non-debt) 7.691 7.691 0%
Total 23.046 16.887 ~27%
Miami 8.375 4.643 .45%
Representative Taxpayer Impacts:
Non-
Homestead Commercial
Homestead Residential Ilndustrial
Representative Taxpayer:
Taxable Value:
Average $ 138,521 $ 257,590 $ 1,230,795
Median $ 89,705 $ 181,090 $ 350.774
Non-City Taxpayer:
Tax Savings:
Average $ 490 $ 912 $ 4,356
Median $ 317 $ 641 $ 1,241
Savings % 21% 21%
Miami Taxpayer:
Tax Savings:
Average $ 1,007 $ 1.873 $ 8,949
Median $ 652 $ 1,317 $ 2,550
Savinas % 29% 29%
Miami-Dade County
Relief Package
Reform Package
Representative Taxpaver Imoacts:
Non-City Taxpayer:
Average
Median
$
$
1.864
1,207
Miami Taxpayer:
Average
Median
$
$
2,507
1,624
Total Plan
Representative Taxpayer Impacts:
Non-City Taxpayer:
Average
Median
$
$
2,354
1,525
Miami Taxpayer:
Average
Median
$
$
3,515
2,276
Notes:
(1) County government tax rates include less-than-cQunty-wide, county-purpose
levies and municipal service taxing unit levies, which may result in displayed tax
rates greater than 10.
(2) This is an aggregate average tax rate, which equals total levies in the county
divided by total county taxabie value.
Property Tax Rate Reduction Proposal
Estimated County Government Impacts
County
ALACHUA
BAKER
BAY
BRADFORD
BREVARD
BROWARD
CALHOUN
CHARLOTTE
CITRUS
CLAY
COLLIER
COLUMBIA
DESOTO
DIXIE
DUVAL
ESCAMBIA
FLAGLER
FRANKLIN
GADSDEN
GILCHRIST
GLADES
GULF
HAMILTON
HARDEE
HENDRY
HERNANDO
HIGHLANDS
HILLSBOROUGH
HOLMES
INDIAN RIVER
JACKSON
JEFFERSON
LAFAYETTE
LAKE
LEE
LEON
LEVY
LIBERTY
MADISON
MANATEE
MARION
MARTIN
MIAMI-DADE
MONROE
NASSAU
OKALOOSA
Tax Rates (mills) (1)
Current ProDosed % Diff Tax Amount (mil $1
10.469 7.949 -24% -28.2
8.459 6.256 -26% -1.6
4.595 2.896 -37% -29.8
9.376 8.194 -13% -1.0
6.358 4.485 -29% -73.5
5.690 4.440 -22% -198.0
9.995 8.996 -10% -0.3
6.415 2.539 -60% -94.1
7.124 5.589 -22% -17.8
8.760 7.208 -18% -14.3
4.640 2.212 -52% -187.0
8.864 7.272 -18% -3.7
7.706 5.618 -27% -3.7
12.633 6.361 -50% -3.8
9.335 8.522 -9% -42.7
9.301 7.407 -20% -27.8
4.666 2.229 -52% -26.6
3.844 1.497 -61 % -9.4
10.000 8.994 -10% -1.2
11.000 7.558 -31% -2.0
11.953 7.925 -34% -2.7
5.625 2.880 -49% -7.9
10.009 9.030 -10% -0.7
9.000 5.850 -35% -4.6
6.500 5.424 -17% -3.0
9.315 6.742 -28% -25.5
8.500 5.650 -34% -16.8
10.258 8.015 -22% -176.3
9.750 7.469 -23% -0.9
5.360 4.213 -21% -20.5
8.000 7.670 -4% -0.4
10.000 7.981 -20% -1.0
10.000 8.243 -18% -0.4
6.616 4.069 -39% -48.2
5.419 3.443 -36% -177.2
8.490 7.163 -16% -19.6
7.900 4.785 -39% -7.2
10.000 6.046 -40% -0.8
9.250 7.701 -17% -1.0
7.919 5.127 -35% -85.4
7.420 6.320 -15% -19.3
7.405 5.282 -29% -45.4
8.264 5.386 -35% -613.1
3.116 2.593 -17% -13.9
7.507 4.012 -47% -25.4
3.650 2.631 -28% -18.2
Property Tax Rate Reduction Proposal
Estimated County Government Impacts
Countv
OKEECHOBEE
ORANGE
OSCEOLA
PALM BEACH
PASCO
PINELLAS
POLK
PUTNAM
ST. JOHNS
ST. LUCIE
SANTA ROSA
SARASOTA
SEMINOLE
SUMTER
SUWANNEE
TAYLOR
UNION
VOLUSIA
WAKULLA
WALTON
WASHINGTON
Tax Rates (mills) (1)
Current Pro Dosed % Diff Tax Amount (mil $l
5.847 4.903 -16% -2.1
7.832 6.436 -18% -128.8
6.800 3.816 -44% -65.1
6.008 4.026 -33% -319.1
6.999 6.493 -7% -13.1
7.066 5.042 -29% -152.9
8.806 6.215 -29% -78.4
9.921 7.129 -28% -10.9
6.989 4.043 -42% -65.1
7.925 4.696 -41% -78.8
6.617 5.059 -24% -13.8
4.190 2.927 -30% -74.4
6.828 4.936 -28% -56.2
6.386 5.878 -8% -2.4
8.992 6.418. -29% -4.0
9.122 7.274 -20% -2.4
10.499 9.566 -9% -0.2
6.248 4.494 -28% -66.8
8.180 5.247 -36% -4.2
3.869 2.219 -43% -26.8
8.500 4.976 -41 % -3.5
STATEWIDE AGGREGATES 6.864 4.856 -29% -3,270.8
(1) County government tax rates include less-than-county-wide, county-purpose levies
and municipai service taxing unit levies, which may result in displayed tax rates greater
than 10. Levies for debt service are not inciuded. This is an aggregate average tax
rate, which equals total levies in the county divided by total county taxable value.
Property Tax Rate Reduction Proposal
Estimated Municipal Government Impacts
County Current Proposed %Dlff Tax Amount (mil $)
JEFFERESON MONTICELLO 7.000 5.489 -28% -0.1
LAFAYETTE MAYO 2.500 1.875 -17% -0.3
LAKE AST A TULA 4.500 1.480 -78% -0.2
CLERMONT 3.729 2.289 -20% 0.0
EUSTIS 5.500 4.002 4% 0.0
FRUITLAND PARK 4.390 2.875 .8% 0.0
GROVELAND 5.650 3.412 -21% 0.0
HOWEY IN THE HILLS 5.445 4.194 -28% -0.1
LADY LAKE 2.200 1.639 -26% -0.1
LEESBURG 4.500 3.457 -21% -0.3
MASCOTTE 5.999 3.170 -57% -0.5
MINNEOLA 4.150 2.166 -36% -1.3
MONTVERDE 2.990 1.951 -66% 0.0
MOUNT DORA 5.975 4.732 -9% -0.2
TAVARES 5.420 3.403 .47% -0.4
UMATILLA 6.240 4.258 -21% -0.9
LEE CAPE CORAL 4.879 1.899 -29% -49.4
FORT MYERS 6.800 3.427 -17% -1.2
SANIBEL 2.500 1.163 -24% -2.2
TOWN OF FORT MYERS BEACH 0.610 0.518 4% 0.0
CITY OF BONITA SPRINGS 0.792 0.696 4% 0.0
LEON TALLAHASSEE 3.700 2.474 -47% -0.3
LEVY BRONSON 3.200 2.016 -42% -1.6
CEDAR KEY 3.125 0.818 43% 0.1
CHIEFLAND 4.939 3.621 -13% -0.6
INGLIS 4.500 2.250 -54% -3.2
OTTER CREEK 3.000 1.944 -48% 0.0
WILLISTON 5.500 2.369 -7% 0.0
Y ANKEETOWN 1.500 0.682 -13% 0.0
FANNING SPRINGS 2.000 1.189 -18% 0.0
LIBERTY BRISTOL 3.000 1.984 -10% 0.0
MADISON GREENVILLE 9.210 9.638 -6% 0.0
LEE 6.670 5.300 -17% -0.1
MADISON 7.000 5.720 4% 0.0
MANATEE ANNA MARIE 2.000 0.909 -22% -0.1
BRADENTON 4.750 2.881 -33% 0.0
BRADENTON BEACH 2.488 0.998 -67% 0.0
HOLMES BEACH 1.800 0.996 -39% -2.9
PALMETTO 5.165 2.629 -27% -1.4
MARION BELLEVIEW 3.819 2.965 -35% -0.2
DUNNELLON 6.500 4.085 -40% -0.9
MCINTOSH 1.054 1.094 -23% -0.1
OCALA BASIC 5.676 4.303 -25% -0.5
MARTIN JUPITER ISLAND 2.249 1.811 -23% -1.4
OCEAN BREEZE PARK 3.482 2.495 -47% -0.5
SEWALL'S POINT 2.400 1.202 -48% -1.0
STUART 5.100 2.279 -35% -0.1
MIAMI-DADE BAL HARBOR VILLAGE 2.902 1.853 -21% -1.1
BAY HAROUR ISLAND 4.750 2.263 -37% -1.5
BISCAYNE PARK 9.200 4.585 -32% -0.2
CORAL GABLES 6.150 3.391 -61% -64.6
EL PORTAL 8.700 3.488 -50% -20.0
FLORIDA CITY 8.900 3.959 -53% -6.7
GOLDEN BEACH 8.590 4.687 -15% -0.3
HIALEAH 6.800 4.719 -12% -0.9
HIALEAH GARDENS 6.120 3.725 -33% -12.4
HOMESTEAD OPERATiNG 6.250 3.497 -37% 0.0
INDIAN CREEK 8.250 5.313 -74% -0.6
ISLANDIA 8.193 8.279 -27% -0.2
MEDLEY 6.900 4.060 -50% -0.2
MIAMI 8.375 4.643 -35% 0.0
NORTH MIAMI 8.300 4.441 -57% -0.4
SOUTH MIAMI 5.881 4.020 -55% -0.1
WEST MIAMI 8.495 4.989 -41% 0.0
MIAMI BEACH 7.374 3.601 -34% 0.0
NORTH MIAMI BEACH 7.500 4.123 5% 0.0
MIAMI SPRINGS 7.500 5.056 -21% 0.0
MIAMI SHORES 8.250 4.904 -18% -0.1
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1 House Joint Resolution
2 A joint resolution proposing amendments to Sections 1, 4,
3 6, and 9 of Article VII and the creation of Section 19 of
4 Article VII and section 27 of Article XII of the State
5 Constitution to revise the methodology for limiting state
6 revenues and the manner of distributing excess collections
7 each year, exempt homestead property from all ad valorem
8 taxation and delete all provisions relating to assessing
9 and taxing homestead property, provide a methodology for
10 limiting increases in ad valorem taxes, impose an
11 additional state sales and use tax to replace revenues
12 lost from homestead property taxes, and provide an
13 effective date and applicability.
14
15 Be It Resolved by the Legislature of the State of Florida:
16
17 That the following amendments to Sections 1, 4, 6, and 9 of
18 Article VII and the creation of Section 19 of Article VII and
19 section 27 of Article XII of the State Constitution are agreed to
20 and shall be submitted to the electors of this state for approval
21 or rejection at the next general election or at an earlier
22 special election specifically authorized by law for that purpose:
23 ARTICLE VII
24 FINANCE AND TAXATION
25 SECTION 1. Taxation; appropriations; state expenses; state
26 revenue limitation.--
27 (a) No tax shall be levied except in pursuance of law. No
28 state ad valorem taxes shall be levied upon real estate or
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29 tangible personal property. All other forms of taxation shall be
30 preempted to the state except as provided by general law.
31 (b) Motor vehicles, boats, airplanes, trailers, trailer
32 coaches and mobile homes, as defined by law, shall be subject to
33 a license tax for their operation in the amounts and for the
34 purposes prescribed by law, but shall not be subject to ad
35 valorem taxes.
36 (c) No money shall be drawn from the treasury except in
37 pursuance of appropriation made by law.
38 (d) Provision shall be made by law for raising sufficient
39 revenue to defray the expenses of the state for each fiscal
40 period.
41 (e) Except as provided herein, state revenues collected for
42 any fiscal year shall be limited to state revenues allowed under
43 this subsection for the prior fiscal year multiplied by a plus an
44 adjustment for growth factor.
45 ill As used in this subsection, the term "growth factor"
46 means the product of multiplying:
47 a. The percentage change in the Consumer Price Index for
48 all urban consumers, U.S. City Average, all items 1982-84 = 100,
49 or its successor index, over the 12-month period through January
50 prior to the beginning of the fiscal year, plus 1; by
51 b. The percentage change in state population as of the
52 first day of July prior to the beginning of the fiscal year,
53 using population as annually determined by federal census
54 estimates, plus 1 an ameunt equal to the average annual rate of
55 gre~th in Florida personal incemc over the mest recent t~cnty
56 qu~rtcr8 timeD the Dt~tc rc~cnuco 311e:;cd under this ouhscction
57 for the prier fiscal year.
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58 ill For the 2008-2009 1995 1996 fiscal year, the state
59 revenues allowed under this subsection for the prior fiscal year
60 shall equal the state revenues that would have been allowed
61 celleetcd for the 2007-2008 1991 1995 fiscal year if the
62 limitation set forth in paraqraph (1) had first been applied to
63 the state revenues collected in the 2001-2002 fiscal year. For
64 the 2001-2002 fiscal year, the state revenues allowed under this
65 paraqraph for the prior fiscal year shall equal the state
66 revenues collected in the 2000-2001 fiscal year. Fleriea personal
67 incsme shall ee determines ey the le~iolature, from infermatien
68 a~~i13s1e from tfio URitocl St3tC8 DC~3rtmcnt ef Commeroe er ita
69 successor en the first day ef Fesruary prior te the be~innin~ sf
70 the fiDeal year.
71 ill State revenues collected for any fiscal year in excess
72 of this limitation shall be transferred to the bud~et
73 stabilization fund until the fund reaches the maximum balance
74 specified in Section 19(9) of Article III or to a special reserve
75 account that may be used solely for local government tax
76 reductions, ana thereafter shall ee refunece te tal~aycrs as
77 provided by general law.
78 (4) The state revenue limit provided for re7cnucs alle~ed
79 under this subsection for any fiscal year may be exceeded if
80 approved increased by a two-thirds vote of the membership of each
81 house of the legislature in a separate bill that contains no
82 other subject and that sets forth the dollar amount by which the
83 state revenues allowed will be increased. The vote may not be
84 taken less than seventy-two hours after the third reading of the
85 bill.
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86 ill For purposes of this subsection, "state revenues" means
87 taxes, fees, licenses, and charges for services imposed by the
88 legislature on individuals, businesses, or agencies outside state
89 government" However, "state revenues" does not include: revenues
90 that are necessary to meet the requirements set forth in
91 documents authorizing the issuance of bonds by the state;
92 rc~cnuco that 3re liDed te ~ro~ide m~tchin~ funds for the fcdcE31
93 Pleeicaie E'rogram ",lith the eltception sf tfie re,,;enueD uDed to
94 oupport tho I'l:lslic Hcclio.J.l }\~ooizt.J.neE: Trust FURe. or i to :JuCGe-seer
95 program and ~ith the eltccption sf Dtate matching fundD usee to
96 hIRe clecti-:e eltpansienD made after July 1, 19911 proceeds from
97 the state lottery returned as prizes; receipts of the Florida
98 Hurricane Catastrophe Fund; balances carried forward from prior
99 fiscal years; taxes, licenses, fees, and charges for services
100 imposed by local, regional, or school district governing bodies;
101 or revenue from taxes, licenses, fees, and charges for services
102 required to be imposed by any amendment or revision to this
103 constitution after July 1, 1994.
104 ~ An adjustment to the revenue limitation shall be made
105 by general law to reflect the fiscal impact of transfers of
106 responsibility for the funding of governmental functions between
107 the state and other levels of government. The legislature shall,
108 by general law, prescribe procedures necessary to administer this
109 subsection.
110 SECTION 4. Taxation; assessments.--By general law
111 regulations shall be prescribed which shall secure a just
112 valuation of all property for ad valorem taxation, provided:
113 (a) Agricultural land, land producing high water recharge
114 to Florida's aquifers, or land used exclusively for noncommercial
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115 recreational purposes may be classified by general law and
116 assessed solely on the basis of character or use.
117 (b) Pursuant to general law tangible personal property held
118 for sale as stock in trade and livestock may be valued for
119 taxation at a specified percentage of its value, may be
120 classified for tax purposes, or may be exempted from taxation.
121 (0) ~7\~11 pero0fl8 0Rtitlcd te .J. hOfficotc.J.d CHcHlI9tion URt3.0r
122 Sectisn € sf this Rrticle Ghall ha7e their homestead aooeoscd at
123 juot 7alue as sf JanHary 1 of the year fsllowiR~ the effective
124 eate of this amendment. This assessment shall chan~e only ao
125 !3Ee~:iaecl fl0!'8in.
126 (1) ~osesomeRts subject ts thio ~r07ision shall be changed
127 annually on January 1st of eaeh yearl but those ohanges in
128 aoseGomento oha1l net ellOeed the lm;er of the fol1mdng:
129 a. Three ~ercent (3%) ef the assessment for the ~risr year.
130 b. The ~crccnt 8A..J.Rf3C in the Conoumer Prisc IflacH fer .:1.11
131 urban COfloumers, U.8. City R7erage, all items 1967 100, or
132 successor reports for the preeedifl~ calendar YCDr as iRitially
133 reported by the URitsd States De~artffient of Labor, Dureau of
134 Labsr Statiotics.
135 (2) Ns assessment shall eReeed juot 7alue.
136 (3) l\fter any chaR~e of o'.mershi~, as prs-;iEied by ~eneral
137 la~, hOffieotead prs~erty shall be assessee at juot 7alHe as of
138 January 1 sf the followin~ year. Thereafter, the homesteaEi shall
139 be .:1.0800006 .:1.8 ~r0~idcd herein.
140 (1) Ne'.; homesteaEi property ohall lae DSGcssed at jHSt -;alue
141 as sf January 1st of the year fol10wiR~ the establishment of the
142 homeotead. That assessment shall 8Rly change as ~ro7ided herein.
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143 (5) Chan~ea, additiono, reductieno, or im~revemente to
144 homeetead ~roperty ahall be asses oed aD ~revides for by ~eneral
145 10'..'1 pre.;idoa, A.0",J07Cr, .J.ftOE the .J.djuotmcnt fer .J.ny CHaRge,
146 odcliti0B, roduction, SE impro~cmcRt, the ~ropcrty shsll be
147 :L~ocoscd:LS ~:ro7idcd herein.
148 (6) In the event sf a terminatien sf homeoteas status, the
149 property shall be aooesses aD provised ~y ~eneral law.
150 (7) The ~rovioisns of thia ameRament are oeverable. If aRY
151 sf the ~rovisieno of this amendment shall ~e held
152 unesRstitutional ~Y any court ef eo~etent juriedietion, the
153 deciaion sf ouch eeurt ohall not affect sr impair any remainin~
154 pro~iaieRo af tRio .J.fficnamcnt.
155 lEl+e+ The legislature may, by general law, for assessment
156 purposes and subject to the provisions of this subsection, allow
157 counties and municipalities to authorize by ordinance that
158 historic property may be assessed solely on the basis of
159 character or use. Such character or use assessment shall apply
160 only to the jurisdiction adopting the ordinance. The requirements
161 for eligible properties must be specified by general law.
162 (e) 7'. county m;).y, in the manner preDcrieed by gCFlCral la'.:,
163 providc for a reduction in thc aosesDed value of hsmestead
164 property te the elltent of any increaee in the aSGeGGca value of
165 th3t ~roperty \:hich ECDelto from the conotructisn eE
166 EecenotEuctiefl of tho ~r0pcrty for tHe pur~eoc of ~ro~iding
167 li~iRf3 q~.J.:rtcro feE eRC or more R:Ltural eE Qdopti~c gr.J.ndp.J.rcnts
168 or parentD sf thc s'.mer of the ~rs~eLty SL of the O\;ner's SPOUOD
169 if at leaot ene of the ~rans~aLentD SL parentD for ~hsm the
170 living quaLterD aLe provides ie 62 yearD of a~e or slser. Such a
171 Lssuotisn may not elloced the leaaer of the follo'.;ing:
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172 (1) The inGrea~c in ~oocooca ~~luc reoulting fram
173 conotruction or reconotruction of tfie property.
174 (2) T~enty ~ercent of the total aooeoee~ value of tfic
175 property ilO impro..-ed.
176 SECTION 6. Homestead exemptions.--
177 (a) Every person who has the legal or equitable title to
178 real estate and maintains thereon the permanent residence of the
179 owner, or another legally or naturally dependent upon the owner,
180 shall be exempt from taxation thereon, except assessments for
181 special benefits, u~ te the aooeoocd valuation of fi..-e thouoand
182 dollaro, upon establishment of right thereto in the manner
183 prescribed by law. The real estate may be held by legal or
184 equitable title, by the entireties, jointly, in common, as a
185 condominium, or indirectly by stock ownership or membership
186 representing the owner's or member's proprietary interest in a
187 corporation owning a fee or a leasehold initially in excess of
188 ninety-eight years.
189 (b) Not more than one exemption shall be allowed any
190 individual or family unit or with respect to any residential
191 unit. No exemption shall exceed the value of the real estate
192 assessable to the owner or, in case of ownership through stock or
193 membership in a corporation, the value of the proportion which
194 the interest in the corporation bears to the assessed value of
195 the property.
196 (c) By '3eneral 1 a',. and oUBject to cenditiono e~ecificd
197 therein, th0 cJrcmptisfl. 8ft.).ll be iFlOEO;J.ocd to a tat.).l of t\:enty
198 fi..-e theuoand do11aro cf tfie aosesoed yalue of the real cotatc
199 for each sefiool ~istrict le..-y. By '3encral law and sUBject to
200 conditions opecified therein, the enem~tion for all other lC'Jieo
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201 m~)" be iFlOrC3.Gecl up te 3Ft :l.Ffl.ount not CH800EiiFl~ ten thou03F.1.d
202 dallars af the assessed value sf the real estate if the a~ner haa
203 .J.tt3incd GlC3C ointy fi~vTe OJ:' io tot.:llly aHa porm..J.ncntly oio:110100
204 .J.na if the S".:BCE i.o not cRti tIea te trAC cncmptien proTyTiclcd in
205 subseetion (d).
206 (d) By general la~ an~ subjeet to eonditiono speoified
207 tRerein, tho cHcmption ahall 60 iFlCrC.:l.:Jcd to .J. tet.J.l sf the
208 follo~ing amounts of assesse~ value of real ostate fer eaoh levy
209 other' thaFl these sf ooheol diotrict8: fiftoeR theuo:l.na doll:l.ro
210 with respect to 1980 asoeoomentsl t~enty theusand ~e11aro ~ith
211 reopeet to 1981 assessmentsl t~enty five tkeusand ~ollare ~lth
212 respect to asseooments for 1982 an~ eaoh year thereafter.
213 Ilm:e-:er, such inorease shall net a)3)31y ',Jitk respect to any
214 assessment rell until such roll is first ~etermine~ te ee in
215 COffLFlli.:J.F100 ',;ith the p1Ee+....ioiono ef oE:ctiGn 1 by a st3.tc 3gCFlCY
216 dcai'3nate~ by general la\:. Thio aubseetisn akall atane rC)3ealed
217 on the offeeti-:e eate ef any amendment to oeetion 1 '..hieh
218 l?E0~iacs for the :l.ooceomcnt of homCGtC:l.6 ~ro~crty 3t a specified
219 pereentage sf its just value.
220 lEl+et By general law and subject to conditions specified
221 therein, the Legislature may provide to renters, who are
222 permanent residents, ad valorem tax relief on all ad valorem tax
223 levies. Such ad valorem tax relief shall be in the form and
224 amount established by general law.
225 [f) The legiolature may, by '3eneral la~, alle',1 eeuntieo or
226 municip.J.litico, for the pUrflEJ08 elf theiE E80fJ80ti.v.c t.J.U lc.v.ico
227 and Gu~jeet to tke previsiena sf general lay, to grant an
228 ad.ditien.J.l homooto.:ld tau 0H(.ffiFltion net cHoccdin~ fifty tR6USGfld
229 dollars te any perssn \Ihs Ioas tHe le'3al or equitable title to
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230 real eotate and maintaino therean the permanent resiaenee of the
231 C'n'Ror :lna ",:ho flas att.J.incEi age ointy fi.v.e and '.:he.:Jc household
232 income, as aefined by gener;}l la'.., aoes net eltoeed t'.Jenty
233 thouoand dellars. The general la'.. muot allm. eountieo ana
234 munioiElalities to grant thio aaaition;}l Clwmption, '..ithin the
235
236
237 periodio adjustment of the income limitation Elreoeribed in thio
238 ouboeetian for eh;}ngeo in the cast of living.
239 (gl Each '.'eteran ',.he io age 65 or older ',.ho io partially or
240 totally Elermanently disaelea ohall receive a di060unt from the
241 amaunt of the ad valorem tall etherwise awed on homeotead property
242 the ',eteran O\.ns and reoiaeo in if the disability ',.ao eomeat
243 related, tho 7eteran wao a reoiaent of thio otate at the time of
244 ent8rin~ the milit:lry G8E~iee sf the URitcd Ctatco, :lRa the
245 veteran was honorably dioeharged upon oeparatien from military
246 oerviee, The aioeount ohall ee in a ~ereentage equal to the
247 ~eEccnta~e sf the ~et8r.J.nID pOrm:lncRt, oCE~icc CSRncotoa
248 dioability ao determined by the Unitea Stateo DeElartment of
249 Veterano ~ffairs. Te qualify for the discount grantee ey thio
250 ouboection, an aElEllioant ffiUOt ouemit to the county pro~crty
251 appraioer, Isy !lareh 1, ~roof of reoidenoy at tho time ef entering
252 military service, an efficial letter frem the United Stateo
253 De~artffient ef Veterano ~ffairo otating the peroentage of the
254 7cteraR'O ocr7ioc connocted disability :lna ouch e7iclcRoC th.J.t
255 reaoonably identifieo the dioability as oombat relatee, ana a
256 co~y of the veteran'o honorable discharge. If the proElerty
257 apElraioer denieo the requeot fcr a discount, the apElraiser must
258 notify the applieant in writing of the reasono for the denial,
limit 0 ~reooribed in thio oubse:ctioR, BY e:niiFl.J.ncc aElopted in the
manner ~reoeribed by general 121\J, .::U18 must flEO+.+idc fOE the
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259 ami the ":cteran may reaflflly. The Legislature may, by EJeneral la\l,
260 ~fai .y.C the aFlFlu.J.l a~@lio.J.tion rCEll:liI"'c-R\cnt ifl oube0qucnt YCuIG.
261 ThiG subGeetien Ghall take effect DecemBer 7, 2006, is Delf
262 cJtCCl::1tin13, .J.Fl6 cl08D Rot require iHlFllementiFl!3 lcgiGl.:ttien.
263 SECTION 9. Local taxes.--
264 (a) Counties, school districts, and municipalities shall,
265 and special districts may, be authorized by law to levy ad
266 valorem taxes and may be authorized by general law to levy other
267 taxes, for their respective purposes, except ad valorem taxes on
268 intangible personal property and taxes prohibited by this
269 constitution.
270 (b) Ad valorem taxes, exclusive of taxes levied for the
271 payment of bonds and taxes levied for periodS not longer than two
272 years when authorized by vote of the electors who are the owners
273 of freeholds therein not wholly exempt from taxation, shall not
274 be levied in excess of the following millages upon the assessed
275 value of real estate and tangible personal property: for all
276 county purposes, ten mills; for all municipal purposes, ten
277 mills; for all school purposes, ten mills; for water management
278 purposes for the northwest portion of the state lying west of the
279 line between ranges two and three east, 0.05 mill; for water
280 management purposes for the remaining portions of the state, 1.0
281 mill; and for all other special districts a millage authorized by
282 law approved by vote of the electors who are owners of freeholds
283 therein not wholly exempt from taxation. A county furnishing
284 municipal services may, to the extent authorized by law, levy
285 additional taxes within the limits fixed for municipal purposes.
286 (c) Sub-ject to the limitations provided for in subsection
287 (b) :
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288 (l)a. For fiscal years beginning in 2009 and thereafter, ad
289 valorem taxes may not be levied in excess of a millage rate equal
290 to the rolled-back rate adjusted by the percentage change in the
291 Consumer Price Index for all urban consumers, U.S. City Average,
292 all items 1982-84 ; 100, or successor reports for the 12-month
293 period through June prior to the beginning of the fiscal year as
294 initially reported by the United States Department of Labor,
295 Bureau of Labor Statistics. For purposes of this paragraph, the
296 term "rolled-back rate" means a millage rate that, exclusive of
297 new construction, additions to structures, deletions, increases
298 in the value of improvements that have undergone a substantial
299 rehabilitation that increased the assessed value of such
300 improvements by at least 100 percent, and property added due to
301 geographic boundary changes, will provide the same ad valorem tax
302 revenue for each taxing authority as was levied during the prior
303 year.
304 b. This paragraph does not apply to taxing authorities that
305 have levied ad valorem taxes for less than two years.
306 (2)a. For the fiscal year beginning October 1, 2008, ad
307 valorem taxes may not be levied in excess of the maximum millage
308 rate that would have resulted from the application of paragraph
309 (1) if paragraph (1) had been in effect beginning on January 1,
310 2001, and had been applied each year up to and including the
311 fiscal year beginning October 1, 2007.
312 b. A taxing authority that begins levying taxes after
313 January 1, 2001, may not levy ad valorem taxes in excess of the
314 maximum millage rate that would have resulted from the
315 application of paragraph (1) if paragraph (1) had been in effect
316 in the second full fiscal year in which the authority levied ad
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317 valorem taxes and had been applied up to and including the fiscal
318 year beginning October 1, 2007.
319 c. This paragraph does not apply to ad valorem taxes levied
320 by school districts.
321 (4) Ad valorem taxes may be levied in excess of the
322 limitations provided in this subsection upon approval by a
323 unanimous vote of the full membership of the governing body
324 adopting the millage rate.
325 (5) This subsection does not apply to ad valorem taxes
326 levied for the payment of bonds or for periods not longer than 2
327 years when authorized by a vote of the electors.
328 SECTION 19. Additional state sales and use tax.--
329 (a) Beginning July 1, 2008, an additional tax at the rate
330 of 2.5 percent is imposed on any transaction or use currently or
331 hereafter subject to tax pursuant to the provisions of chapter
332 212, Florida Statutes. Exemptions from the tax imposed pursuant
333 to chapter 212, Florida Statutes, adopted by general law, shall
334 apply to the additional tax imposed in this section.
335 (b) The proceeds of the additional tax imposed in this
336 section shall be set aside for distribution to local governments
337 as provided by general law.
338 ARTICLE XII
339 SCHEDULE
340 SECTION 27. Property tax relief reform.--The amendments to
341 Sections 1, 4, 6, and 9 of Article VII and the creation of
342 Section 19 of Article VII and section 27 of Article XII of the
343 State Constitution contained in this revision shall take effect
344 January 1, 2008.
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345 BE IT FURTHER RESOLVED that the following statement be
346 placed on the ballot:
347 CONSTITUTIONAL AMENDMENT
348 ARTICLE VII, SECTIONS 1, 4, 6, 9, 19
349 ARTICLE XII, SECTION 27
350 STATE REVENUE LIMITATION; HOMESTEAD EXEMPTION; AD VALOREM
351 TAX MILLAGE LIMITATION; ADDITIONAL SALES AND USE TAX.--Proposing
352 amendment of the State Constitution to revise the methodology for
353 limiting state revenues allowed each year by applying a growth
354 factor consisting of the Consumer Price Index and state
355 population changes retroactively to revenues from fiscal year
356 2000-2001 onward, with excess collections transferred to the
357 Budget Stabilization Fund to its maximum authorized balance or to
358 a special reserve account that may be used solely for local
359 government tax reductions as provided by general law; to exempt
360 homestead property from all ad valorem taxation by deleting all
361 provisions relating to assessing and taxing homestead property
362 but leaving intact assessments for special benefits; to provide a
363 methodology for limiting increases in ad valorem taxes applied to
364 the rolled-back rate adjusted by changes in the Consumer Price
365 Index retroactively to 2001, including an override by a unanimous
366 vote of the governing body levying the millage; to impose an
367 additional state sales and use tax of 2.5 percent dedicated to
368 replacing revenues lost from totally exempting homestead property
369 from ad valorem taxation; and to provide an effective date of
370 January 1, 2008.
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