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Highlands Today

Superexemption Knocked Off Ballot

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By Gary Pinnell | Highlands Today

Published: September 26, 2007

The ruling of a circuit court judge has removed the property tax relief proposal from the Jan. 29 ballot, but the Legislature has time to reverse that action.

Lawmakers are scheduled to return to Tallahassee Oct. 3-12 for a special session in which they must cut more than $1 billion from the state budget.

The constitutional amendment seeks to give homeowners property tax relief through two options: take a 75 percent exemption of the first $200,000 of a home's value and 15 percent off the next $300,000 off their property taxes; or keep the current Save Our Homes, which limits annual increases of a home's taxable value to 3 percent annually.

The state Senate will appeal the court's decision, hoping to keep the tax-cutting amendment on the same ballot as the Jan. 29 presidential primary. Senate President Ken Pruitt says the Senate's best course of action is to defend what lawmakers did in an appeal, rather than trying to change the ballot language.

Other options include rewriting the ballot summary to meet the judge's objections or deferring the issue to the constitutional Taxation and Budget Reform Commission.

Local Reaction

"Currently, the Legislature is exploring all legal options," said State Rep. Denise Grimsley, R-Lake Placid. "The court upheld the mandatory rollbacks, which for Highlands County was 3 percent.
"The Legislature now has the option to come back during special session and clarify the amendment language for January. Until our legal staff advises us, I can't tell you what that will be," Grimsley said. "I can tell you that it is extremely important that we continue to focus on lowering property taxes.
"Taxpayers have not seen significant relief and are disappointed that local government hasn't recognized the burden escalating taxes have caused," Grimsley said.

Avon Park City Manager C.B. Shirey's reaction was mixed. "I'm glad that the judge recognized that the language is misleading, that the voters would be voting on something they did not understand."
Shirey was disappointed the second part of the judge's ruling, though.

"The judge recognized that Legislature does have the constitutional authority to set the millage rate," Shirey said. "I don't think the legislature should be setting the millage rate for the local jurisdictions, which is something they have no knowledge of."

When the Legislature passed its tax cuts, Shirey said, it did not differentiate between high-tax coastal areas and inland counties. "One size does not fit all."

He hoped the legislature will now leave the issue alone. If citizens are unhappy with the property taxes they pay, they can settle their differences with city and county governments at the next election, Shirey said.

Here Come The Judge

The ballot summary says the amendment would preserve existing property tax breaks, although it would actually phase out Save Our Homes, wrote Circuit Judge Charles A. Francis of Tallahassee.
Francis, though, upheld a separate law the Legislature passed as a part of a two-pronged effort to cut property taxes. The Legislature required cities and counties, but not school districts, to roll back and cap taxes for all types of property. Local governing bodies can exceed those tax limits by the vote of a super majority of its council members.

The proposed amendment offers even greater tax reductions through a 75 percent super exemption, and would have included school districts.

"One way or another, we will give Florida taxpayers the relief they deserve," said House Speaker Marco Rubio, R-West Miami.

That doesn't mean the Legislature can grant the right to choose between the superexemption and Save Our Homes without a vote of the people, Grimsley said.

Weston Mayor Eric Hersh, who challenged both legislative measures, said he hoped lawmakers will leave it to the Taxation and Budget Reform Commission, which can make recommendations to the Legislature and put amendments directly on the November 2008 ballot.

"I'm hoping that they will look at this as an opportunity to fix something," said Weston Mayor Eric Hersh. "Hopefully that's the tactic they will take instead of looking at this as a defeat."

Hersh has not yet decided whether to appeal the tax rollback decision. He said he would be more inclined to do so, though, if the state appeals the amendment ruling.

"Not only was it misleading, but it was terrible legislation," Hersh said.

Court And Ballot Language

Circuit Court Judge Charles Francis of Tallahassee:

"Try as this court has ... and having read, reread, examined and studied the ballot summary under review, the Court cannot find that the language is clear, concise, unambiguous and fair... This language is misleading and confusing, and does not provide fair notice to the voter" that the amendment would phase out Save Our Homes.

This statement was scheduled for Florida's Jan. 29 ballot:

Proposing amendments to the State Constitution to increase the homestead exemption from $25,000 to 75 percent of the just value of the property up to $200,000 and 15 percent of the just value of the property above $200,000 up to $500,000, to subject the $500,000 threshold to annual adjustments based on the percentage change in per capita personal income, to authorize an increase in the $500,000 threshold amount by a two-thirds vote of the Legislature, and to specify minimum homestead exemption amounts of $50,000 for everyone except low-income seniors and $100,000 for low-income seniors; to provide for transitional assessments of homestead property under the increased homestead exemption that include preserving application of Save-Our-Homes provisions until an irrevocable election is made; to revise Save-Our-Homes provisions to conform to provisions providing for the increased homestead exemption and transitional assessments of homestead property; to require the Legislature to limit the authority of counties, municipalities, and special districts to increase ad valorem taxes; to authorize an exemption from ad valorem taxes of no less than $25,000 of assessed value of tangible personal property; to provide for assessing rent-restricted affordable housing property and waterfront property used for commercial fishing, commercial water-dependent activities, and public access at less than just value; and to schedule the amendments to take effect upon approval by the voters and operate retroactively to Jan. 1, 2008, if approved in a special election held on Jan. 29, 2008, or shall take effect Jan. 1, 2009, if approved in the general election held in November 2008.

What The People Say

- In July, Florida voters favored the proposed Jan. 29 amendment by 57 percent to 17 percent. Nearly two-thirds of respondents said the measure needs "a lot more explanation." Just 5 percent believe it has been "clearly explained." (Sixty percent is required for passage.)

- In September, Quinnipiac University poll in New Jersey telephoned 1,141 Florida registered voters: 47 percent would support the constitutional amendment, 22 percent would oppose it, and 31 percent don't know or don't care.

The Associated Press contributed to this story.

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