Legislature Stalled On Tax Cuts

SEBRING - Gov. Charlie Crist and the Senate are ready to approve a property tax cut package, but legislators took a weekend break on Thursday because House leaders don't think the reform plan helps enough taxpayers.

Crist is pushing the House to approve a four-year, $11 billion property tax cut plan already passed by the Senate.

The House plan would cost the state $14 billion over four years. It contains exemptions for businesses, vacation homes and rental property.

"House members would like to discuss and debate and explore this and give it time to fully vet all
those ideas," said Rep. Baxter Troutman, R-Winter Haven. He represents Avon Park.

The House and Senate generally agreed before the session began on seven ideas, said Highlands County Property Appraiser Raymond McIntyre, who was in Tallahassee to monitor the proceedings.

* Double $25,000 homestead exemption to $50,000.

* Make Save Our Homes portable, if a homeowner buys another house of equal or greater value, up to $1 million. Save Our Homes caps property tax valuations at 3 percent each year.

* Offer a tax break to first-time home-buyers.

* Grant a 100 percent tax exemption to low-income seniors.

* Grant a tax exemption for affordable housing.

* Grant a $25,000 personal property tax exemption for businesses. For example, personal property in a restaurant would include tables and equipment.

* Grant a larger exemption for oceanside marinas and other working waterfront businesses. The current proposal would not include any Highlands County businesses, McIntyre said.

Both chambers want a tax break for low-income, elderly homeowners. The House would wipe out all property taxes for low-income seniors, the Senate's exemption is limited.

Doubling the homestead exemption would save homeowners an average of $240 next year, according to legislative estimates. Taking "Save Our Homes" to a new home could save $800 next year. First-time homebuyers could save $500.

Likely to be part of the final package - which would be approved by voters - is a requirement that the Legislature limit how much governments can raise local property tax rates, an element disliked by cities and counties

There's also disagreement on a House proposal to limit how much property taxes can go up for non-homestead properties, such as businesses, rental properties or vacation homes. The Senate says that would cost local governments too much.

Whatever the Legislature comes up with is likely to change the Florida Constitution, so it must be approved by voters. The deadline to get the ballot language to the Secretary of State is Oct. 29.

The Associated Press contributed to this report.