Legislators Consider $50,000 Exemption

Raymond McIntyre is unwilling to speculate on exactly what the Florida Legislature might do later this week, but his best guess is that the superexemption proposal is politically dead, and that the governor's idea to double homestead exemptions is finally going to pass.

The 75 percent superexemption was to be voted on by Florida citizens in the Jan. 29 presidential primary, but a district judge knocked the issue off the ballot, saying it was too vague.

Senate Majority Leader Ken Pruitt filed an appeal, but McIntyre, who is this year's president of the state property tax appraisers association, said the word at the Capitol is that Pruitt will back off and endorse the proposal advanced by Gov. Charlie Crist.

So will Speaker Marco Rubio, according to a letter released to House members at 1 p.m. Wednesday:
"Governor Crist has proposed a plan much like the one he introduced during the regular session. His proposal would provide savings for first-time homebuyers; double the current homestead exemption from $25,000 to $50,000; provide a measure of portability; provide additional savings for low-income seniors; and reduce the taxes small businesses pay on tangible personal property.

"The total savings of this proposal would be $6.3 billion spread over five years, or about $200 per homeowner," Rubio wrote. "During informal conversations with the Senate, the House has requested inclusion of the following issues:

- "Total elimination of property taxes for low income seniors;

- "Targeted relief for affordable housing;

- "Targeted relief for ... restaurants, inns, bed and breakfasts, and marinas that are vital to Florida's beachfront and tourist economies;

- "Additional property tax relief for property owners who make energy efficient improvements to their homes and businesses;

- "Measures to level the playing field and protect property owners from the abuses of government, including an elimination of so-called 'presumption of correctness' which currently gives ultimate authority to property tax appraisers and leaves little recourse for property owners whose property is unfairly assessed, as well as requiring that all Florida property appraisers switch from appointed to elected positions.

"We remain optimistic that these additional measures will be received favorably by the Senate," Rubio said.

The Associated Press also reported that legislative leaders agreed Wednesday to remain in special session until Oct. 22 to try to cut property taxes.

McIntyre said another proposal has also been discussed, an exemption for first-time homebuyers.
State Rep. Denise Grimsley could not confirm that. "I have not seen that in writing, but I believe almost every option has been looked at by the leadership," she said Wednesday afternoon.
How It Works

Currently, a homeowner gets a $25,000 homestead exemption from taxes. If the home is assessed at $100,000, the homeowner pays taxes on $75,000. Also, the Save Our Homes constitutional amendment prevents tax assessors from re-valuing the home at more than 3 percent per year.
However, if the homeowner sells the home, the $25,000 homestead exemption and the Save Our Homes cap end. Portability would allow homeowners to carry their homestead exemption and Save Our Homes cap to a new home, an option endorsed by the real estate community, since it would allow agents to sell more homes.

Crist has often repeated his desire to see property taxes "drop like a rock," but so far the state has only provided what it says will be an average of $174 in savings for each homeowner through legislation that does not require voter approval.

Senate Democratic Leader Steve Geller, Cooper City, thought the $50,000 exemption would only provide an additional estimated $220 per homeowner. He said that was not enough to justify the cuts that cities and counties would have to make in some services.

"The pain it would cause to local government is immense," Geller said.

While Republicans have enough votes to approve a constitutional amendment for the November 2008 ballot, they'll need Democratic support to put it on the primary ballot.

McIntyre said the deadline to get the ballot language to the secretary of state is Oct. 29, if the issue is to be on the Jan. 29 ballot.

The Associated Press contributed to this report.