Local News
Ballot measures explained, Part 3
TBO.com
Published: October 16, 2012
This November, Florida voters will decide on 11 proposed amendments to the Florida Constitution.Published: October 16, 2012
To help our readers better make up their mind, Highlands Today has tried to explain the proposed measures in simple language, along with their possible impact.
This is the final of three stories.
Most of the research is from The Collins Center and Florida Trends.
Amendment 9
Title on ballot: Homestead Property Tax Exemption for Surviving Spouse of Military Veteran or First Responder.
Sponsor/Originator: The Florida Legislature.
Main sponsors: Sen. Jim Norman (R-Tampa) and Rep. Shawn Harrison (R-Temple Terrace).
What it would do: This would grant a full property tax exemption to the surviving spouses of military veterans who die while on active duty and to the surviving spouses of first responders who die in the line of duty. The amendment defines a first responder as a law enforcement officer, a correctional officer, a firefighter, an emergency medical technician or a paramedic.
Budget Impact: Without knowing how many surviving spouses may be eligible in any given year, it is difficult to calculate the economic impact on property tax revenues with certainty. However, assuming current millage rates, the tax break will cost $600,000 annually — $300,000 a year for schools and $300,000 a year for nonschool local governments beginning in 2013-14 — according to an analysis by the Florida House of Representatives.
Amendment 10
Title on ballot: Tangible Personal Property Tax Exemption.
Sponsor/Originator: The Florida Legislature
Main sponsors: Sen. Nancy Detert (R-Venice) and Rep. Eric Eisnaugle (R-Orlando).
What it would do: This amendment would double the tangible personal property tax exemption and allow local governments to increase the exemption.
Every year, taxes are assessed on tangible personal property used in a business or to earn income. Examples include furniture, fixtures, machinery, tools, shelving, signs and equipment.
Under current law, the first $25,000 of tangible personal property is exempt from taxation. If passed, Amendment 10 would boost that exemption to $50,000. It would also allow cities and counties to grant additional tangible personal tax exemptions beyond the $50,000.
Supporters say this amendment will give tax relief to small businesses and help stimulate the economy. They say it provides a way for local governments to offer further reductions in the business tax.
Opponents say this amendment is part of a trickle-down economic theory that does not work. They say it will strip millions in tax revenue from local governments struggling to provide basic services.
Budget impact: Citing information from the state Department of Revenue, a Florida Senate analysis said 7.6 percent of the total county property taxes levied in Florida in fiscal year 2011-12 were from tangible personal property taxes. The corresponding amount for cities was 6.1 percent. Those percentages would likely decrease if Amendment 10 passes.
Statewide, the additional exemption (from $25,000 to $50,000) proposed in Amendment 10 would reduce property tax collections across the state by a combined $61 million over its first three years, according to the state Revenue Estimating Conference, which calculates the anticipated fiscal impact of proposed amendments. The law also allows for counties and cities to expand the exemptions, but the fiscal impact of that proposed change cannot be estimated.
Amendment 11
Title on ballot: Additional Homestead Exemption; Low-Income Seniors Who Maintain Long-Term Residency on Property; Equal to Assessed Value.
Sponsor/originator: The Florida Legislature.
Main sponsors: Sen. Rene Garcia (R-Hialeah) and Rep. Jose Oliva (R-Hialeah/Miami).
What it would do: This amendment would give an additional property tax exemption to low-income seniors who have lived in their home for more than 25 years. The exemption could eliminate the entire tax bill on the homestead property, which has to have a market value of less than $250,000.
Supporters say this amendment will benefit elderly residents on fixed incomes. They say the property tax discount can help with medical bills and may allow more elderly residents to stay in their homes as they age.
Opponents say state and local governments face mounting budget shortfalls in part because of diminished property tax returns. Schools and local governments need to maintain the tax base.
Budget impact: The state estimates the combined tax revenues schools and local governments would lose if Amendment 11 passes, and if every city and county in the state were to approve the exemption, would be a combined $18.5 million over the first two years it was offered.
Amendment 12
Title on ballot: Appointment of Student Body President to Board of Governors of the State University System.
Sponsor/Originator: The Florida Legislature.
Main sponsors: Sen. Bill Montford (D-Apalachicola) and Rep. Matt Gaetz (R-Shalimar).
What it would do: This amendment would change the way the state selects the student representative on the state university system's board of governors, which oversees the university system.
Currently, the board's student representative is the chairman of the Florida Student Association, which serves as a council consisting of the student body presidents from the 11 state universities. Florida State University, which does not participate in the Florida Student Association, has been aggressively lobbying for years for a change in the selection process.
Budget impact: None.