LTC 070-2007 State Legislative Report
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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
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SUBJECT: STATE LEGISLATIVE REPORT
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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
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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,"
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