HomeMy WebLinkAboutReso 2007-1067
RESOLUTION NO. 2007- I o(p 7
A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF SUNNY ISLES BEACH, FLORIDA, OPPOSING
THE PROPERTY TAX REVISION PROPOSED BY THE
FLORIDA LEGISLATURE; EXPRESSING SUPPORT
FOR THE ALTERNATIVE PROPERTY TAX REFORM
PROPOSED BY THE GOVERNOR WITH CHANGES;
AUTHORIZING THE CITY MANAGER TO DO ALL
THINGS NECESSARY TO EFFECTUATE THE INTENT
OF THIS RESOLUTION; RECOMMENDATION OF THE
CREATION OF A BLUE RIBBON PANEL; DIRECTING
THE CITY CLERK TO TRANSMIT AN EXECUTED
COPY OF THIS RESOLUTION TO APPROPRIATE
PARTIES; PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the Florida House of Representatives just unveiled their proposal to address
property tax reform this legislative session; and
WHEREAS, the proposal calls for a roll back of local property taxes based on a formula
based on the City's 2001 rate, adding increases for inflation; and
WHEREAS, if this proposal is passed as law, cities will have to comply with a spending
cap based upon the 2001 spending formula, however, cities could exceed the cap with a
unanimous vote of the governing body, and eliminate property taxes on homestead property and
replace it with an increase in the State Sales Tax by 2.5 cents; and
WHEREAS, if this proposal were to pass, it would equate to a net loss in property tax
revenue of $8.1 Million Dollars for the City of Sunny Isles Beach, based on a rolled back
Millage rate of 1.280 which would negatively affect the quality, quantity and types of all
essential City services provided (i.e. Police, parks, recreation, communications, ocean rescue,
transportation, administration, etc.); and
WHEREAS, the plan proposed by the House has other flaws, including the following:
I. First and foremost, this is an issue of local control. Local communities incorporate so as
to detcrmine the level of service that its residcnts want. One size does not fit all. The
proposal effectively eliminates Home Rule with the concept that lawmakers in
Tallahassee understand how to address local needs better than local elected officials.
2. In addition to an adverse effect on level of service to residents, benefits to City
employees, as well as workforce levels, will be reduced. We could place ourselves very
easily in a situation where Municipalities in the State of Florida can no longer be
competitivc in retaining top-level employees.
3. The State has mandated that certain serviccs provided previously by the State are now to
be funded by local governments and yet the State is proposing to restrict the ability of
R2007- Opposing Leg Plan To Eliminate Property Tax.Doc
local governments to obtain the necessary funding to cover thc cost of those mandated
services. Such mandates include pensions, police wages, etc.
4. If this proposal affects the County, then the levels of services that the County provides
the Municipalities such as Fire, Water and Sewer, Police, Library could also cause a
burden on the Municipalities.
5. A sales tax increase is regressive in that it transfers much of the burdcn to low and middle
class families. Additionally, Property Tax relief disproportionately favors higher income
familics.
6. Sales tax will hurt the tourist industry by increasing this tax by 40%. There are other
Sunshine destinations besides Florida that tourists may instcad travel to.
7. Sales Tax is not a stable funding source compared to Property Taxes as they (Sales Tax)
are more susceptible to economic cycles. This can be at a time when the demands on
local services increase. This point was actually made recently in a memo by the House
Speaker that so far this year the largest decline of general revenue funds is from sales tax
collections.
8. Why use up the "last line of dcfense" which is the ability to raise emergency funds in
times of disaster by increasing sales taxes now when all that's needed is a fair method of
assessment of property taxes?
9. If taxes are rolled back for all propcrties, what mechanism is in place to assure renters
that their landlords would pass on this savings? Would consumers be assured that retail
and commercial propcrty owners would reduce cost of their products and services to
rcflect the reduction in local Property Taxes?
10. Many Municipalities have financcd infrastructure improvements through bond issuance.
These securities require certain financial ratios to be maintained and the sales tax formula
could create conditions of default due to changes in revenue streams caused by these roll
backs, and possibly put some cities in bankruptcy.
11. Municipalities such as Sunny Isles Beach have financed capital improvement projects on
a "pay-as-you-go" basis instead of issuing debt. The proposal could force the city to
incur debt, while at thc same time imposing restrictions on thc city that increase the cost
of debt the city is forced to issue. This proposal rewards the issuance of debt and
punishes pay-as-you-go spending while increasing the cost of debt.
12. The proposal provides a disincentive to implemcnt growth management initiatives, since
new construction will be the only way to increase the tax base, even as funding to service
the new growth will be restricted.
13. Thc "Save our Homes" Property Tax cap for Homestead and Property created the
disproportionate situation and this area is in need of correction.
14. The severity of the spending cuts is such that it could severely impact municipalities
ability to respond to any disaster scenarios.
15. This proposal negativcly impacts other funding streams for municipalities, such as the
Community Budget Issue Requests.
16. Please note that unlike the local government requirement for a unanimous vote of the
governing body to exceed the millage cap, the legislature can exceed their cap by only a
2/3 vote.
17. Without adequate funding, virtually all municipalities will become blighted.
R2007- Opposing Leg Plan To Eliminate Property Tax.Doc 2
WHEREAS, Governor Charlie Crist has proposed an alternative plan that calls for a
tiered approach to the payment of Property Taxes, whereby, the first $25,000.00 of property
value is taxable, the next $50,000.00 is not taxable, and the remainder of value over $75,000.00
is taxable; and
WHEREAS, in addition, the City recommends a current use approach with a reasonable
percentage annual cap instead of highest and best use valuation approach for property owned by
homesteaders, non-homesteaders, and businesses; and
WHEREAS, the Governor's plan does not address the property valuation inequity that
exists, that a plan be developed and put in place that will provide a long term solution that will be
fair for all homeowners and that this can be accomplished by studies already planned for later
this year; and
WHEREAS, the City Commission recommends the creation of a Blue Ribbon Panel to
study tax relief proposals.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION
OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS:
Section I. Opposition to Elimination of Propertv Tax. The City of Sunny Isles Beach hereby
advises the Florida Legislature that it opposes the proposed Property Tax Reform that would roll
back local property taxes based on a formula based on the City's 2001 rate, adding increases for
inflation.
Section 2. Support of Alternative Propertv Tax Reform. The City of Sunny Isles Beach
hereby advises the Florida Legislature that it supports the alternative plan that calls for a tiered
approach to the payment of Property Taxes, whereby, the first $25,000.00 of property value is
taxable, the next $50,000.00 is not taxable, and the remainder of value over $75,000.00 is
taxable, as proposed by Governor Charlie Crist. In addition, the City rccommends a current use
approach with a reasonable percentage annual cap instead of highest and best use valuation
approach for property owned by homesteaders, non-homesteaders, and businesses.
Section 3. Creation of a Blue Ribbon Panel. The City of Sunny Isles Beach hereby urges the
Florida Legislature to create a Blue Ribbon Panel to evaluate and study all tax relief proposals to
determine which proposals will be fair to all Floridians.
Section 4. Authorization of Citv Manager. The City Manager is hereby authorized to do all
things necessary to effectuate the intent of this Resolution.
Section 5. Directive of Citv Clerk. The City Clerk shall provide executed copies of this
resolution to the members of the Miami-Dade County Legislative Delegation, each member of
the Miami-Dade Board of County Commissioners, as well as each municipal City Clerk in
Miami-Dade County for the purpose of distributing copies to members of their respective
governing councils.
R2007. Opposing Leg Plan To Eliminate Property Tax.Doc 3
Section 6.
adoption.
Effective Date. This Resolution shall become effective immediately upon
PASSED AND ADOPTED this 15'h day of March 2007.
ATTEST:
:~~tL
Jane A. Hines, CMC, City Clerk
,
Moved by: \JIC~ Mf>Nf:JR -Iliil-U.R
Seconded by: [l1'l\'l'llY\\S.<;lnl\)t~ I<;,\....~sl-l'\-S
Vote: 5-a
Mayor Edelcup
Vice Mayor Thaler
Commissioner Brezin
Commissioner Goodman
Commissioner Iglesias
V(Yes)
v(Yes)
V(Yes)
:;SY es)
(Yes)
_(No)
_(No)
_(No)
(No)
_(No)
R2007- Opposing Leg Plan To Eliminate Property Tax.Doc 4
City Commission
Norman S. Edelcup
Moyor
Lewis J. Thaler
Vice Mayor
Roslyn Brezin
Commissioner
Gerry Goodman
(.;)mrnissioner
Donny Iglesias
COnlllllSsioner
A. John Szerlog
City Manager
Hans Ottinot
City Attorney
Ja ne A. Hines
City Clerk
March 16, 2007
Richard Kuper, Esq.
Executive Director
Miami-Dade County League of Cities
226 East Flagler Street
Suite 200
Miami, Florida 33131
Re:
Opposition to the Propertv Tax Revision Proposed bv Florida House
of Representatives. and Support for Alternative Propertv Tax Reform
Proposed bv Governor Crist with Chane:es.
Dear Mr. Kuper:
At the March 15, 2007 City Commission Meeting, the Sunny Isles Beach City
Commission unanimously adapted a resolution relative to the above referenced
issues. This resolution is attached and has four components:
I. What the House of Representatives is proposing.
2. How this proposal would affect the City of Sunny Isles Beach.
3. Why the proposal by the House of Representatives is flawed.
4. Support for Governor Crist proposal along with some additional
suggestions.
Please disseminate this resolution to all members municipalities. The intended
outcome is that other municipalities will determine the financial impact on their
city, and forward their position on this matter via Commission Resolution to the
Florida Legislature.
Thank you for your consideration on this
c1~4
orman S. EdeIcup
ayor
Attached Resolution No. 2007-1067
AJS/iw
MDCLOC . Property Tax Revision Ltr
Page 1 of 1
,
~
Priscilla Walker
Priscilla Walker
Tuesday, March 20,200711:41 AM
'wilson. Frederica. web@flsenate.gov'; 'Rich. nan. web@flsenate.gov'; 'margolis. gwen. web@flsenate.gov';
'portilla. alex. web@flsenate.gov'; 'villalobos.alex. web@flsenate.gov'; 'bu liard .Iarcenia. web@flsenate.gov';
'Garcia. rudy. web@flsenate.gov'
Subject: Property Tax Reform Resolution
Attachments: Resolution No. 2007-1067. pdf
From:
Sent:
To:
At its regular meeting of March 15,2007, the Sunny Isles Beach City Commission adopted Resolution No.
2007 -1067, opposing the property tax revision proposed by the Florida Legislature and supporting the
alternative property tax reform proposed by the Governor, with changes. Further, the City Commission
requested the attached, executed copy be forwarded to you for your consideration.
Thank you.
Prisci{{a Wa{Rgr, CMC, Deputy City Clerk
City of Sunny Isles Beach
18070 Collins Avenue, Sunny Isles Beach, FL 33160
(305) 792-1703 Phone (305) 949-3113 Fax
Under Florida law, e-mail addresses are public records. If you do not want your e-mail address released in response to
a publiC records request, do not send electronic mail to this entity. Instead, contact this office by phone or in writing.
3/20/2007
Page 1 of 1
Priscilla Walker
From:
Priscilla Walker
Tuesday, March 20,20074:15 PM
'Eddy. gonzalez@myfloridahouse.gov'; 'tee. holloway@myfloridahouse.gov';
'yolly. roberson@myfloridahouse.gov'; 'dan. gelber@myfloridahouse.gov'; 'Luis. garcia@myfloridahouse.gov';
'Ronald. brise@myfloridahouse.gov'; 'Dorothy. bend ross-mindi ngall@myfloridahouse.gov';
'rene. Garcia@myfloridahouse.gov'; 'marco. ru bio@myfloridahouse.gov'; 'david. rivera@myfloridahouse.gov';
'carlos.lopez -cantera@myfloridahouse.gov"; 'anitere. flores@myfloridahouse.gov";
'jc. planas@myfloridahouse. gov'; 'marcelo.llorente@myfloridahouse.gov"; 'J u lio. robai na@myfloridahouse.gov';
'Edward. bullard@myfloridahouse.gov"; 'juan .zapata@myfloridahouse.gov";
'ron .sau nders@myfloridahouse.gov"
Subject: Property Tax Reform Resolution
Attachments: Resolution No. 2007-1067. pdf
Sent:
To:
At its regular meeting of March 15,2007, the Sunny Isles Beach City Commission adopted Resolution No.
2007-1067, opposing the property tax revision proposed by the Florida Legislature and supporting the
alternative property tax reform proposed by the Governor, with changes. Further, the City Commission
requested the attached, executed copy be forwarded to you for your consideration.
Thank you.
Prisci[fa Wa[kfr, CMC, Deputy City Clerk
City of Sunny Isles Beach
18070 Collins Avenue, Sunny Isles Beach, FL 33160
(305) 792-1703 Phone (305) 949-3113 Fax
Under Florida law, e-mail addresses are public records. If you do not want your e-mail address released in response to
a public records request, do not send electronic mail to this entity. Instead, contact this office by phone or in writing.
This message is being resent as we received a message that it failed. If this is a duplicate, please disregard.
3/20/2007
Page 1 of 1
Priscilla Walker
From:
Priscilla Walker
Tuesday, March 20, 2007 11 :24 AM
aroman@pinecrest-f1.gov; Barbara Estep; herrera-hillb@cityofdoral-fl.gov; barguelles@townofsurfsidefl.gov.;
cspelorzi@nbvillage.com; Carol Aybrun,EI Portal; Caroline Burgos; Conchita Alvarez, CMC; Magali Valls,
CMC; Melissa A. Garciga, CMC; Ronetta Taylor, CMC; Solomon Odenz, CMC; Deborah S. Irby; Debra
Eastman; Ellisa Horvath; Erika Gonzalez-Santamaria; Felix A. Diaz; Guido H. Inguanzo, Jr. (OVC); Herlina
Tabaoda; Jacqui Vieira; Jane Hines; Jennifer Evelyn; Mari Joffee; Martinez, Maria; Maria Menendez; Maritza
Fernandez; M. Marante ; Marta Rodriguez; Meighan Rader; Mercy Arce; Nkenga "Nikki" Payne; Pamela E.
Burns, ; Pat Gibbs; pthompson@cLmiami.fl.us; Rafael Granado; Parcher, Robert; Sheila Paul Shedd;
sorokat@cityofaventura.com; Tiffany Bily; village clerk; Walter J. Foeman; Yvonne P. Hamilton
Subject: Proposed Property Tax Reform
Attachments: Resolution No. 2007-1067.pdf
Sent:
To:
The following resolution is being forwarded per the request of the Sunny Isles Beach City Commission. Please distribute
a copy to your respective governing officials.
Thank you.
Prisci{Ca Wa{R.fr, CMC, Deputy City Clerk
City of Sunny Isles Beach
18070 Collins Avenue, Sunny Isles Beach, FL 33160
(305) 792-1703 Phone (305) 949-3113 Fax
Under Florida law, e-mail addresses are publiC records. If you do not want your e-mail address released in response to
a public records request, do not send electronic mail to this entity. Instead, contact this office by phone or in writing.
3/20/2007
MIAMI-DADE
Chairperson: Senator Rodolfo "Rudy" Garcia
7475 West Fourth Avenue
Hialeah, FL 33014
Telephone: (305) 364-3191 ;;::; Fax: (888) 284-8594
Vice Chairperson: Representative Julio Robaino
Delegation Contact Person(s): Executive Director: Debra D. Owens;;::; Executive Assistant: Mirtha Flores
Delegation Mailing Address:
111 N.W. 1st Street, Suite 108
Miami, FL 33131
Telephone: (305) 375-4088 ;;::; SIC: 445-4088
Fax: (305) 375-4151;;::; Fax SIC: 445-4151
MIAMI-DADE COUNTY DELEGATION MEMBERS
House Members: Senate Members:
Rep. Rafael "Ralph" Arza District 102 Sen. Frederica S. "Freddi" Wilson District 33
Rep. Wilbert "Tee" Holloway District 1 03 Sen. Nan Rich District 34
Rep. Y oily Roberson District 104 Sen. Gwen Margolis District 35
Rep. Dan Gelber District 106 Sen. Alex Diaz de la Portilla District 36
Rep. Gustavo A. Barreiro District 107 Sen. J. Alex Villalobos District 38
Rep. Phillip J. Brutus District 108 Sen. Larcenia J. Bullard District 39
Rep. Dorothy Bendross-Mindingall District 109 Sen. Rodolfo "Rudy" Garcia District 40
Rep. Rene Garcia District 110
Rep. Marco Rubio District III
Rep. David Rivera District 112
Rep. Carlos Lopez-Cantera District 113
Rep. Anitere Flores District 114
Rep. Juan-Carlos "J.c." Planas District 115
Rep. Marcelo Llorente District 116
Rep. Julio Robaina District 117
Rep. Edward B. "Ed" Bullard District 118
Rep. Juan C. Zapata District 119
Rep. Ken Sorensen District 120
MONROE
Chairperson: Representative Ken Sorensen
90311 Overseas Highway, Suite A
Tavernier, FL 33070-0699
Telephone: (305) 853-1947;;::; SIC: 464-1947
Delegation Contact Person(s): Holly Merrill
Delegation Mailing Address/Telephone: (Same as Delegation Chairperson)
Local Government Council
- 20-
March 2006- Listing of
Local Legislative Delegations
OF SUl'l
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, Florida 33160
(305) 947-0606 City Hall
(305) 949-3 II 3 Fax
(305) 947-2150 Building Department
(305) 947-5107 Fax
City Commission
Norman S. Edelcup, Mayor
Lewis J. Thaler, Vice Mayor
Roslyn Brezin, Commissioner
Gerry Goodman, Commissioner
Danny Iglesias, Commissioner
A, John Szerlag, City Manager
Hans Ottinot, City Attorney
Jane A. Hines, CMC, City Clerk
MEMORANDUM
TO: The Honorable Mayor and City Commission
FROM: A. John Szerlag, City Manager
DATE: March 15,2007
RE: REVISIONS TO PROPERTY TAX REFORM RESOLUTION
This Resolution was revised by changing "market value approach" to "current use approach with
a reasonable percentage annual cap"; and by adding a recommendation "urging the Florida
Legislature to create a Blue Ribbon Panel to evaluate and study all tax relief proposals to
determine which proposals will be fair to all Floridians".
~~~~
Agenda Item -1 0 L
Cover Memo Property Tax Reform.Doc
Date s-IS-Dr
'.
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, Florida 33160
(305) 947-0606 City Hall
(305) 949-3 II 3 Fax
(305) 947-2150 Building Department
(305) 947-5 107 Fax
City Commission
Norman S. Edelcup, Mayor
Lewis J. Thaler, Vice Mayor
Roslyn Brezin, Commissioner
Gerry Goodman, Commissioner
Danny Iglesias, Commissioner
A. John Szerlag, City Manager
Hans Ottinot, City Attorney
Jane A. Hines, City Clerk
MEMORANDUM
TO: The Honorable City Commission
FROM: A. John Szerlag, City M~
DATE: March 8, 2007
RE: 1. Opposition to the Property Tax Revision Proposed by the Florida House of
Representatives.
2. Support for the Alternative Property Ta~_nRef~~_n~!~P~S~_~_~L!~~gmo~~!!lor
-Wlth-Changes.- _n__ un________m__ -------- --- -- -
City Managers within Miami-Dade County have been meeting for reason of assessing the financial
and level of service impacts to municipal operations based on the restrictions contained in the
Property Tax Reform Proposal advanced by the Florida House of Representatives. All impacts are
negative; in fact, severely negative. Succincdy, when a city loses its revenue stream, its level of service
is also reduced. When the municipal level of service is reduced, the quality of life for residents,
including public safety issues, are also reduced. What happens next is that capital projects are placed
on hold or eliminated. Add all this together and what you have is a city wide angle of repose to
blight. And in a very short time frame.
The attached resolution has four components:
1. What the Florida House of Representatives is proposing.
2. How this proposal would affect the City of Sunny Isles Beach.
3. Why the proposal by the House of Representatives is flawed.
4. Support for Governor Crist proposal along with some additional suggestions.
On the home front, Mayor EdeIcup and I have collaborated on this issue, so please feel free to
contact either one of us should you have any questions.
AJS/iw
cc: Jorge L. Vera, Assistant City Manager/Service Division
Douglas M. Haag Assistant City Manager/Finance Division
Hans Ottinot, City Attorney
Jean Watson, Finance Director
Commission - Property Tax RevisionDoc
Agenda Item \ 0 I
Date 3 -I S- 07
"
Deve;Jorul f::Jy
06V5 UOQj
Overview of Proposed ~
Florida Property Tax Reform -2007
Background Information
Sales Tax Facts
1 cent statewide raises $4 Billion
1 cent statewide could replace all municipal property taxes
2 cents statewide would replace K-12 O&M (almost 50% of property taxes paid)
2 V2 cents statewide would replace property tax on all homestead property
Save Our Homes Exemption
Has kept> $8 Billion worth of property valuation from being added to tax rolls. Result is that the
- ---6urden-hasoe-enshiffea1orenters;-n-ewnomeowners;owners-ofseco-na-h-6mes--ana6Dsinesses:-
Municipal Property Tax Share
Of the 412 cities that levy property tax, their combined levy generates about $4 Billion of the $30
Billion in total property tax revenue.
State Budqet
The $70 Billion State budget has grown 70% over the last 8 years
Cities spend money on two kinds of services:
Services demanded by local taxpayers
Services mandated by the state legislature
Unfunded State Mandates to Local Governments
Large pension benefits to police & firefighters
Minimum salaries for police officers
Drinking water treatment
Sewage treatment
Road construction specifications
Recycling
Comprehensive planning
Etc.
Property Tax Breakdown
13% Cities
40% Counties
40% School Districts
3/9/2007
Florida Property Tax Reform Legislation
Property taxes are deductible for Federal income tax purposes. This is the last year that sales
taxes will be deductible.
Since 2001, the state population has grown 12% while total local taxes levied has grown 83%,
from $16.7 billion to $30.4 billion in 2006.
Nearly 1,000 new residents arrive in Florida each day
Florida currently ranks 44th in state and local taxes as a percentage of income and it's business
tax climate was rated this year as the 5th most favorable in America...The governor and the
legislature should slow down. An in-depth report ordered by the legislature is not due until
September, a committee appointed by former Gov Jeb Bush won't be finished until December,
and a constitutionally empowered tax and budget commission begins its own review this year.
- Tampa Bay Times Editorial, 2/4/07
If local taxing authority is substantially diminished, the effect will be similar to how counties in
Florida functioned before the almost revolutionary constitutional reforms of 1968. ...before 1968,
the Florida legislature averaged 4,000 special acts per year that gave counties the right to do
what governments do. For example, if a county wanted to start a library system, it had to
request and obtain a special legislative act spelling out its right to do that. - Bill Berlow,
..Ass0ciateEditorj~Tallahassee. Democrat, 3/2/07-.. .~..._..n..__ . .....n_n_.
...[apparently] it doesn't matter that local governments much more closely reflect the values and
desires of the communities they serve. If local officials' worst fears are realized, many citizens
will blame them for reducing services while praising elected state officials for cutting the taxes
that pay for the services they demand. - Bill Berlow, Associate Editor, Tallahassee Democrat,
3/2/07
There is the danger the housing boom will lull policy makers into complacency, since the gains
come early and the pain later. The immediate benefits are rising revenue and increasing
employment. The costs are gradually declining levels of public services as government
operations are stretched thin and infrastructure is increasingly crowded. - David Denslow, UF
Economist, 2005
Officials in Bradenton, Palmetto and Manatee County have either instituted hiring freezes or are
discussing options to handle reduced revenue. - Melanie Marquez, The Herald, 3/2/07
Leon County has frozen some construction, new hires and staff travel..... - Jeff Burlew,
Tallahassee Democrat, 2/27/07
A group of Alabama residents with second homes in the Panhandle have filed a class-action
suit asking a Leon County judge to thro out the state's Save Our Homes property assessment
cap. ... They contend the assessment cap passed by voters in 1992 unconstitutionally shifted
" more than a reasonable and fair share of the infrastructure demand of Florida" onto snowbirds
and second homeowners. - Aaron Deslatte, Tallahassee Democrat, 2/27/07
3/9/2007
Florida Property Tax Reform Legislation
2
'.
House Proposal - aka Rubio Plan
1. Tax rollback - rolls back local property taxes based on 2001 rate plus increases
for inflation
..a bill that, if approved this spring by the legislature, would cap tax increases at inflation
after rolling tax rates to their levels in 2001 - before the real estate market boomed and
local government spending skyrocketed. Local governments could vote to increase
spending beyond the tax caps. - Marc Caputo and Mary Ellen Klas, Miami Herald,
2/22/07
Local governments could decide to go over the cap with only a 2/3 vote or a simple
majority of 2/3 is not possible.
House Republican legislators proposed a revolution in how Floridians tax themselves
Wednesday: an immediate, nearly 20% reduction in all property taxes this year, and the
option to abolish property taxes on residents homesteads..... Local elected officials said
the proposal, which is far from assured of passage, would hobble their municipalities
because it would impose a ceiling on their ability to tax and spend. - Mark Hollis and
-Jamie Malerne;-Sonth Florida-Sun::Sentinel;-2/22/07--. n
2. Cap on spending - based on 2001 spending formula. Cities could exceed the cap
with a unanimous vote of the governing body.
The House plan calls for a separate state law, effective July 1, 2007, that would
immediately force local governments to roll back property tax rates and cut nearly $5.8
Billion in spending, or an average of 19% of their budgets. The legislation would also
impose a cap limiting future property tax increases. The rollback would not affect levies
for school districts, but the cap on future increases would. - Jason Garcia, Orlando
Sentinel, 2/22/07
..A proposed constitutional amendment, that if approved by voters, would limit state
spending increases to the inflation rate, and eliminate property taxes entirely for owners
of homesteaded properties. That, in combination with the rollback legislation, would cut
property taxes statewide by $13.5 Billion. The sales tax increase would only pump
about $7.8 Billion back into local governments, leaving a $5.8 Billion hole.
...But they agree on this: Local governments stand to lose about $5.8 Billion from
taxpayers - and the poor would start paying more while the well-off would pay far less.
- Marc Caputo and Mary Ellen Klas, Miami Herald, 2/22/07
The spending limits on local governments are modeled after programs adopted in other
states. A plan adopted in Colorado in 1990 backfired after 15 years when businesses
threatened to leave because of deteriorating education and healthcare services.
Colorado voters suspended the tax and budget overhaul plan in 2005 for 5 years. -
Marc Caputo and Mary Ellen Klas, Miami Herald, 2/22/07
3/9/2007
Florida Property Tax Reform Legislation
3
"
Colorado Taxpayer Bill of Rights (TABOR) Intent:
Required voters to approve all tax increases or state debt
Limited growth in state revenues to a formula based on population growth plus inflation
Placed separate revenue limits on school districts and local government
Mandates that taxes above those limits be refunded to taxpayers
3. Eliminate property taxes on homesteaded property and replace with increase in
sales tax of 2.5 cents
Replacing property taxes with a higher sales tax would require approval by two-thirds of
Florida voters because it involves raising the sales tax. ...sales tax is a regressive
revenue source...sales tax revenues are more volatile...- Jason Garcia, Orlando
Sentinel, 2/22/07
More people will shop on the internet to avoid the higher sales tax...call it the eBay relief
act.... A big winner would be real estate agents, speculators and developers. In South
Florida, the market is one good flush from going down the toilet. Visitors pay about 20%
of- the sales tax;-.; ;-The Republicans haveal ready put-nth is - state- in-fiscal-- jeopardy by
subsidizing hurricane insurance on the coast. When we get slammed and go billions of
dollars in debt, the logical bailout would be in the sales tax. Maxing it out now precludes
that. - Mike Thomas, Orlando Sentinel, 2/22/07
...food, medicine, services and rent are exempt from sales tax in Florida.
Caputo and Mary Ellen Klas, Miami Herald, 2/22/07
- Marc
Rubio release an economic analysis to accompany his plan which predicts that the
property tax cuts will make Florida one of the lowest tax-burden states and "will generate
significant economic growth and prosperity for the state..." - Marc Caputo and Mary
Ellen Klas, Miami Herald, 2/22/07
Moving from property tax collections, considered a particularly stable from of taxation, to
increasing reliance on sales tax "seems like a move in the wrong direction" that could
eventually hurt the state's bond and credit ratings, he said. - Johnathan Hamilton, UF
via Nicholas Azzara, The Herald, 2/26/07
But while homeowners could be dancing in the' streets, local governments would be
scrambling to rewrite budgets to make up for the dramatic revenue drop-off. - Aaron
Deslatte, Tallahassee Democrat, 2/27/07
Even if voters approved a constitutional revIsion next fall to abolish homesteaders
property taxes and raise the state sales tax to replace lost governmental revenue, cities
would still have to slash budgets by an average of 30%, says John Wayne Smith, a
lobbyist with the Florida league of Cities. - Aaron Deslatte, Tallahassee Democrat,
2/27/07
3/9/2007
Florida Property Tax Reform Legislation
4
Although rental properties would still be taxed under the proposal, their owners would
benefit from a bout a 20% reduction in their property tax bill. House Speaker mark
Rubio, R-West Miami, didn't rule out changing the law to require landlords to share
savings with tenant, or reward them for doing so. This would take effect next year.
.. ..Bruce Nissen, a labor studies professor at FlU, called Rubio's argument "total
nonsense". The reason he said, is because demand and prices for homes would rise
once property taxes drop.. ...Observed Nissen, " If anything, this will raise the cost of
housing." - Aaron Deslatte, Tallahassee Democrat, 2/27/07
Estimated impact on Sunny Isles Beach: Rate rollback from 2.9500 to 1.280, a
difference of -57% and a DECREASE in property tax revenue of $8.1 Million
3/9/2007
Florida Property Tax Reform Legislation
5
'.
Governor Crist's Tax Reform Proposal
The Governor outlined his proposal on January 30,2007. Comprised of four major components.
Result is a total decrease in taxes of $377 Million for municipalities.
1. Homestead Exemption - Increase from $25,000 to $50,000
[$250 Million decrease]
Crist has since backed off and said the extra exemption would not apply to school taxes.
- Tampa Bay Times Editorial, 2/12/07
Crist aides told lawmakers the governor want to hold a statewide election in November
to double the homestead exemption and spread the current Save Our homes property
tax cap to all seasonal, business and rental properties. Aaron Deslatte, Tallahassee
Democrat, 2/8/07
2. Save Our Homes - Expand to allow for portability
[$27 Million decrease]
For instance, if the owner ofa $30Q,000homewiththe standard homestead exemption
is assessed on $175,000 of value, they could buy a $500,000 home and only be
assessed on $375,000 of its value. If they downsize to a $200,000 home, the
percentage of their savings on the old home would transfer to the new one. So they
would shave $67,000 off of the assessed value. This would take effect next year. -
Aaron Deslatte, Tallahassee Democrat, 2/27/07
And, it [report by Legislature's research arm] also suggests one of the most popular
ideas advocated by Gov. Charlie Crist - allowing homesteaders to take their Save Our
homes discounts when they move - would only add to the inequity and may be
unconstitutional. The 223 page study released Thursday is the first broad brush
analysis of how the 1992 Save our Homes amendment that capped taxes for
homesteads has played out. - Aaron Deslatte, The news-Press, 2/16/07
3. Save Our Homes - Expand to allow assessment cap (3% or CPI) for all properties
[$75 Million decrease]
This would take effect next year.. ..This would reduce revenue to cities, counties and
schools by almost $3 billion within 5 years, as the difference between market value of
property and its assessed value grew. - Aaron Deslatte, Tallahassee Democrat, 2/27/07
3/9/2007
Florida Property Tax Reform Legislation
6
"
4. Personal Property - Add a $25,000 exemption
[$25 Million decrease]
Police and firefighters back Crist's plan but fear job losses. The governor says cities can
trim fat elsewhere.... While some public safety organizations are wry, so far they are
siding with Crist. They say they are confident the new governor's plan will not lead to
layoffs. During last fall's campaign, Crist was endorsed early by the PBA and the state's
Fraternal Order of Police, and later drew backing from firefighters statewide after
securing the Republican nomination. Cities and counties throughout the state say the
package will slash billions from their tax rolls, forcing cuts in police, fire, park programs
and other public services. Crist so far has avoided a backlash from school boards,
saying his proposal to double the homestead exemption would not apply to the portion of
local property taxes that go to schools and special districts. - John Kennedy, Orlando
Sentinel, 2/11/07
Governor Charlie Crist's promise to slash property taxes for beleaguered homeowners
would apply to only about 2/3 of the taxes most homeowners pay, top aides told
legislators Tuesday, igniting criticism from Democrats that the tax cut plan would be a
"bait and switch" - Gary Fineout, Miami Herald, 2/7/07
3/9/2007
Florida Property Tax Reform Legislation
7
" ...
Results of Poll by Florida League of Cities
1. People are generally pleased with direction of the state but are more pleased with the
direction of their local communities
2. Local government works best because it is the government closest to the people it
serves
3. Property taxes are seen as unfair
4. The public overwhelmingly feels that a sales tax is fairer than a property tax
5. The public wants property tax relief
6. The public would accept a sales tax increase in exchange for property tax relief
7. The public does not like state government meddling in local affairs of local communities
8. The public thinks local governments are better able to reform property tax issues
9. The public does not want to see cuts in the services provided by local governments
10. The public wants local taxes to stay local and they want local control over how they are
taxed
3/9/2007
Florida Property Tax Reform Legislation
8
yage 1 or j
Ivonne Weiner
Angela T. Gasca (OVM) [gasca@pinecrest-fl.gov]
Monday, March 19, 2007 3:56 PM
Aguilar, Yolanda; Baker,Kelvin; Benton, Tom; Beverly, Jannie R.; Borgmann, James R.;
Brooks, Kathie; Brown, G.; Burgess, G.; Cadaval, Olga; De Varona, Anna; Fernandez, Hilda;
Gasca, Angela; Gonzalez, Alina; Gonzalez, Jorge; Gorland, Ronald K.; Hemstreet, Tim;
Inguanzo, Ramiro; Ivy, Curtis K., Jr.; Jimenez, Juan C.; Jimenez, Maria A.; Kelly, Dennis W.;
Klopp, Keven; Lombardi, Peter G.; Lubin, Dona; McDonald, Andrea; McHugh, Horace;
McKinley, Yvonne Soler; Menendez, Jackie; Middaugh, Bob; Patterson, Clarence; Purrinos,
Sergio; Rey, Alex; Riverol, Alfredo; Salazar, Maria Elena; Scurr, Charles; Shehadeh, Mike;
Soroka, Eric; Steers, Christopher; John Szerlag; Tindel, Greg; Tindle & Jimenez; Treppeda,
Alfred J.; Volkert, Marleen; Wilbanks-Free; Alexander, Steven; Boudreaux, Mike; Crew, Danny
O. ; Faddis, Johanna; Farmer, Renee C.; Forte, Jorge; Galiano Gomez, Yocelyn; Kevin
Crowder; Marono, Manny; MDCLC President; Orji, Ezekiel 0.; Saiz de la Mora, Marcus;
Salazar, Hugo D; Vega, Alex; Jorge Vera
Subject: FW: Property Tax Revision
Attachments: Opposition to the Property Tax Revision.pdf
From:
Sent:
To:
Please see below.
Angela T. Gasca, Assistant to the Village Manager
Office of the Village Manager
Village of Pineer-est
12645 Pineerest Parkway
Pineerest, Florida 33 "156
t (305) 234-2121
f (305) 234-2131
g<:l?cCl@pine~rest -fl.gov
www.pinecres.t~fl.gov
From: Ivonne Weiner [mailto:IWeiner@sibfl.net]
Sent: Monday, March 19, 2007 3:38 PM
To: Angela T. Gasca (OVM)
Subject: Property Tax Revision
Angela:
Please e-mail the attached to all FCCMA members.
Re: Opposition to the Property Tax Revision Proposed by Florida House of Representatives,
and Support for Alternative Property Tax Reform Proposed by Governor Crist With
Changes
At the March 15, 2007 City Commission Meeting, the Sunny Isles Beach City Commission
unanimously adapted a resolution relative to the above referenced issues. This resolution is attached
and has four components:
3/19/2007 .