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LTC 070-2007 State Legislative Report lD MIA/v\1 BEACH OFFICE OF THE CITY MANAGER NO. LTC # 070-2007 LETTER TO COMMISSION TO: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez, City Manager~ l' March 28, 2007 n ...., = -l = -< ..... :II: n ,.. .- ::0 rr; N :::J ....0 ;>;: FROM: DATE: SUBJECT: STATE LEGISLATIVE REPORT v. ".. <::) ::x: The purpose of this LTC is to provide the Mayor and City Commission with the ~cl1iilJ legislative update from the City's State Lobbyists. In addition, please find the presscrele~ issued by the Senate Democratic Caucus on March 27, 2007, regarding their 'plan for property tax reform. On March 20, 2007, I traveled to Tallahassee to discuss the property tax reform issue with members of the House of Representatives and Senate, including, Speaker Marco Rubio, Senators Mike Haridopolis and Gwen Margolis, Representatives Dan Gelber, Luis Garcia, and Dorothy Bendross-Mindingall, as well as the Florida League of Cities. Although the House proposal is ready for floor action, and the Senate Democrats have released their proposal, the Senate Majority proposal is not expected to be released for two more weeks. To this end, staff will travel to Tallahassee again this week to meet with Senate leadership staff. The Administration will also continue to work with the Miami-Dade City I County Manager's Association and the League of Cities on this issue. Additionally, as highlighted in the attached report, property tax is not the only issue being discussed by the Legislature. The Administration and the City's lobbyists continue to pursue a number of the City's other priorities, including Affordable Housing, Condominium Reform, the Convention Center Sales Tax Refund, and Education. On March 27, 2007, the Florida Senate released the list of water projects that are recommended for funding, which includes $1.4 million for the City's stormwater infrastructure request. I will continue to provide you with updates as the Legislative Session progresses. In the meanti~e, if you have any questions or comments, please do not hesitate to contact me. JMG~c F:\ECON\$ALL\KEVIN\Legislative Priorities\State Legislative\2007 Session\Week 3 L TC.doc :::0 m (") I"n - < m o RUTLEDGE, ECENIA, PURNELL & HOFFMAN PROFESSIONAL ASSOCIA TJON ATTORNEYS AND COUNSELORS AT LAW STEPHEN A. ECENIA RICHARD M. ELLIS KENNETH A. HOFFMAN LORENA A. HOLLEY MICHAEL G. MAIDA MARTIN P. MCDONNELL J. STEPHEN MENTON POST OFFICE BOX 551, 32302-0551 215 SOUTH MONROE STREET, SUITE 420 TALLAHASSEE, FLORIDA 32301-1841 R. DAVID PRESCOTT HAROLD F.X. PURNELL MARSHA E. RULE GARY R. RUTLEDGE MAGGIE M. SCHULTZ TELEPHONE (850) 681-6788 TELECOPIER (850) 681-6515 GOVERNMENTAL CONSULTANTS JONATHAN M. COSTELLO MARGARET A. MENDUNI MEMORANDUM TO: Mayor David Dermer City Commissioners and City Manager Gonzalez City of Miami Beach VIA: E-mail to Kevin Crowder FROM: Gary Rutledge Fausto Gomez Bob Levy Margie Menduni Manny Reyes Jose Diaz DATE: March 27,2007 SUBJECT: Legislative Report - Week 3 Tax Deferral The team has worked with Senator Garcia who has three shell bills on affordable housing, one of which will become a companion to Representative Davis' House Bill 1375. Senator Garcia has agreed to put the language in that bill. We have done this in conjunction with Senator Margolis' office. Cable Reform House Bill 529 passed the floor of the House by a vote of 104 to 8. On the House floor Representative Rene Garcia unsuccessfully tried to push an amendment to help local governments. The Senate Communications and Public Utilities Commission heard Senate Bill 998 by Bennett on 3/22. We made hits to advance an amendment by Fasano which prohibits cherry picking. The amendment passed by a vote of 6 to 3 with Chairman Bennett voting on the City of Miami Beach Legislative Report - Week 3 Page 2 prevailing side and then asking for reconsideration to TP the bill with the amendment pending. However, he did not get a majority vote to accomplish that objective so the amendment is now on the bill. Condominium Reform The condo conversion bills, House Bill 7031 by Mahan passed the House on 3/22 by a vote of 114-0. It is now in messages to the Senate where Senate Bill 396 by Margolis is on second reading on the calendar. House Bill 1373, Cornmunity Associations by Robaina, passed its first cornmittee with a strike all amendment. It requires professional inspection of the structural integrity of condominiums every five years; provides for religious displays; prohibits SLAPP suits; provides a degree of independence for the Ombudsman; requires reserve accounts in the association budget; provides that pets may be present for emotional support; amends and provides a safe harbor provision for an owner or association who seeks advice from the ombudsman. Please review the strike all and advise as to the City's position. The companion has not been heard. Convention Center Tax Refund Senate Bill 2124 by Constantine is scheduled to be heard in Cornmerce Tuesday, 3/27, Taxes The House discussed its latest property tax proposal PBC I in Policy and Budget Committee on Friday, 3/23. During the discussion Representative Gelber was trying to impress upon the Committee the impact on Miami-Dade County, Representative Rivera responded in a rather hostile manner by pointing out that the County recently spent $104 million for new furniture and that some budget tightening was appropriate, The Senate, Finance and Tax Committee work shopped the concept of just value, A number of property appraisers testified, No legislation was proposed and no votes were taken, House Bill 333 by Lopez-Cantera which implements the homestead exemption for seniors is on third reading in the Senate, Education Senate Bill 450 by Rich which extends the Florida Teachers Lead Program stipend to Pre-K teachers is scheduled to be heard in Education Pre-K-12 on 3/28, It then has one appropriation committee remaining, City of Miami Beach Legislative Report - Week 3 Page 3 Senate Bill 988 by Argenziano which modifies the background screening for the Jessica Lunsford Act passed favorably from Education and Pre-K on 3/21 and has one committee remaining, However, there is no House companion, Appropriations The Senate Appropriation Chairmen have released their recommendations in the General Government Appropriation Committee budget. $100 million is allocated for water projects, However, no breakdown of t he allocation will be available until later in the session, We continue to work on the Beach's projects, The Senate budget also contains $30 million for statewide beach renourishment. However, DEP told us that they have only requested $20 million because they did not have requests for funding that totaled $30 million. The House budget contains the following appropriations of interest to the City: Miami-Dade JCS - Senior Meals Program (homebound meals) Seymour Gelber Adult Day Care Program Broward, Miami-Dade, Palm Beach - South Florida Holocaust Summer Assistance Program $ 50,000 $100,000 $100,000 The Senate budget provides $100 million for CWHIPP for workforce housing for moderate income persons in high-cost counties, It was our pleasure this week to work with the City Manager Jorge Gonzalez and Kevin Crowder in Tallahassee as they discussed the City's property tax reform proposals, We also met with City Film Commissioner Graham Winnick in Tallahassee this week while he was promoting the entertainment bills, FOR IMMEDIATE RELEASE March 27, 2007 CONTACT: MICHELLE DEMARCO 850-487-5833 SENATE DEMOCRATS UNVEIL SWEEPING PROPERTY TAX REFORM PLAN Reform package promises frustrated Floridians equitable, fair and immediate tax relief TALLAHASSEE - From the elderly property owner wishing to downsize to the first time homebuyer, and from part-time residents to small business owners, Floridians struggling with rising property taxes can expect immediate relief under a dramatic tax reform plan unveiled Tuesday by Senate Democrats, "The property tax system we currently have in Florida has not only been unfair, it's become an albatross on our economy," said Senate Democratic Leader Steven A. Geller (D- Hallandak: Beach), "The tax reform plan we are offering today means mobility for homebuyers and a kick start to the housing market. It also means an equitable rollback in property tax rates to property owners across the board without sacrificing local government services, especially police and fire protection, Finally, it means that a Widow Jones will be on par with a Rush Limbaugh when it comes to their proportionate property tax contributions," Senator Ted Deutch (D- Boca Raton), who helped draft the plan, agreed, "Under this proposal, everybody gets some relief, We balanced the effort as much as we could, with across the board tax cuts along with targeted tax cuts, particularly to affordable housing and working waterfront and fIrst time homebuyers." The key elements of the package include the following: . Portability: Folks wishing to downsize will be able to take their Save Our Homes tax savings with them, For people seeking more expensive homes, Save Our Homes will extend to an amount not to exceed $250,000, . Assessment Protection: Increases the Save Our Homes assessment limitation to 3% plus the change in the CPl, not to exceed 6 percent. This will protect homestead property owners from large increases in their property taxes from year to year, ---more--- . Non-Homestead Protections: Limit assessment increases for non-homestead real property to 10 percent. This will protect non- homestead property owners from large increases in their property taxes from year to year, but will keep assessments in line with just value over time based on anticipated real property growth rates, It will reduce the uncertainty facing investors, and help preserve cornmunity character in times of rapidly appreciating property values, . Business Tax Relief: Provide a $25,000 exemption for tangible personal property, This provides tax relief for businesses that own tangible personal property and eliminates the administrative burden small businesses face in filing retums on equipment worth less than $25,000, . Property Tax Rollback: Impose a statuto!)' three-year property tax limitation on property tax increases for all cities and counties, Property tax revenues could grow by the amount of new constnlction plus the percentage change in the CPI plus 3%, To provide immediate relief, property taxes will be rolled back to FY 2005-2006 levels, . Local Government Revenue: Require partial year assessments so that revenue lost through tax cuts is replenished by the timely addition of properties to the tax rolls, This not only ensures that new residents pay for those services they are receiving, but for those property owners who buy in mid-year, it also avoids sticker shock those owners traditionally faced when their escrow accounts were billed for taxes accrued during that period, . Affordable Housing: Tax affordable housing properties by basing their assessment on the properties' rental income, A change in the use of the property will subject it to a four year recapture of the tax savings, . Waterfront Property: Waterfront property used for water-dependent recreational and commercial purposes will be assessed on the basis of its income, Hotels will not qualilY for the treatment. A change in the use of the property will subject it to a four year recapture of the tax savings, . First Time Homebuyers Tax Breaks: First-time homebuyers will be eligible for a tax exemption provided that the home is below the median just value of homestead property in the county of residence, "This plan isn't a shell game shifting the burden from one group to another, This plan is real reform, representing the broadest, the fairest, and the most dramatic rate reductions for eve!)' property owner in Florida," said Senate Democratic Leader Pro Tempore Frederica Wilson (D-Miami), "In this lifeboat, everyone gets the same paddle," ###