PROPERTY-TAX AMENDMENT
Florida approves property tax cut
Facing a slowing economy and years of rising property-tax values, Florida voters overwhelmingly approved a property-tax amendment.
By MARY ELLEN KLAS
meklas@MiamiHerald.com
Florida voters gave themselves a tax cut Tuesday, deciding that about $240 in property-tax relief is better than none in a campaign season cloaked in economic woe. Voters approved Amendment 1 by a 64-to-36 margin, with the most expensive real-estate region in the state, South Florida, giving it resounding approval.
It is a major victory for Gov. Charlie Crist, who pushed the issue, raised $4.4 million to finance a statewide campaign, and became the face in a blitz of TV ads.
''Floridians are concerned about the economy, so I think a tax cut is important to them,'' said Crist as he celebrated the primary victory of John McCain in Miami. ``I'm pleased for the people of Florida.''
The proposal was placed on the ballot by the Legislature in October to answer the call for tax cuts from homeowners, businesses, and investors squeezed by mounting real-estate costs as property values rose. It saves homeowners about $240 a year by increasing the homestead exemption an average of $15,000, gives homeowners ''portability'' -- the ability to transfer their tax savings to a new home -- and gives new tax breaks to businesses and, to a lesser extent, non-homestead property.
But passage of the plan is only the first phase of what the governor promised would be ''just the start'' of a prolonged push to lower property taxes. On Wednesday, the Taxation and Budget Reform Commission will consider other tax-cut ideas, including replacing the property taxes for schools with a sales tax on services.
Basking in the glow of victory Tuesday night, Crist wasn't sure what was next. ''I'll probably think about that tomorrow,'' he said.
House Speaker Marco Rubio, a West Miami Republican, who is backing a citizens initiative to cap all property-tax increases to 1.35 percent, predicted the amendment will provide little immediate relief.
''It's going to mean virtually nothing to Florida's economy,'' he said Tuesday. ``Step 2 has got to be much bigger than Step 1 and everyone understands that.''
Opponents, who included teachers unions, firefighters, local-government leaders and economic advisors, warn that passage of the amendment exposes the property-tax system to a constitutional challenge and a host of unknown problems.
''We're going to call our legal counsel tomorrow and look at the constitutionality of this amendment,'' said Deborah Dion, spokeswoman for the South Florida AFL-CIO.
A lawsuit is already pending in Leon County in which three newcomers to Florida are asking a judge to throw out the amendment, alleging that portability discriminates against newcomers and violates their state and federal constitutional right to equal protection, and the right to move from another state without facing economic harm.
''We don't know if portability will be tied up in the courts,'' said Rep. Dan Gelber, the House Democratic leader from Miami Beach who opposed the amendment. ``Unfortunately, I think most people probably figured it was better than nothing, but it may end up causing more pain than they expect.''
The amendment is projected to cut $9.3 billion in taxes over the first five years, including $204 million from Miami-Dade schools and $144 million from Broward schools. Local governments, public-employee unions, and others fear it will lead to massive cuts in public services such as fire protection, law enforcement, and schools.
''The voters of Florida have indicated that they are strapped financially and that they need immediate relief,'' said Andy Ford, president of the Florida Education Association, the teachers union that helped finance the opposition drive.
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