GOVERNOR CRIST PROPOSES TAX CUT PLAN TO KEEP FLORIDA’S ECONOMY VIBRANT
January 30, 2007
Contact:
ERIN ISAAC
488-5394
BONITA SPRINGS - Governor Charlie Crist today announced priorities that will ease the property tax burden on Florida homeowners, businesses and renters. Proposed tax breaks for homeowners include seeking a constitutional amendment to double the homestead exemption to $50,000 and make the Save Our Homes cap portable statewide. Businesses and renters would benefit from a three-percent cap on their property taxes as well. Additionally, Crist proposed creating a more business friendly environment by exempting small businesses from a tax on tangible personal property such as computers totaling $25,000 or less.
Trianon Bonita Bay, a Bonita Springs hotel, was selected as the location for today’s announcement because of the general manager’s inability to expand and grow his business due to rising property taxes. Governor Crist was joined for the announcement by Representative Carlos Lopez-Cantera (R-Miami); Nancy Keefer, president of the Bonita Springs Area Chamber of Commerce; and Ken Wilkinson, Lee County Property Appraiser, initiator the Save Our Homes cap, which was approved by voters as a Constitutional Amendment in 1992.
“Along with rising home insurance rates, spiraling property tax increases are making Florida unaffordable,” said Governor Crist. “Public servants should limit the size of government and return tax dollars to the people; after all, it’s the people’s money.”
A proposed special election in 2007 would ask Florida voters to approve a constitutional amendment that would include all four property-tax relief measures. Details of Governor Crist’s Tax Cut Plan are as follows:
—Double Homestead Exemption – Governor Crist would allow local governments to increase the current homestead exemption from $25,000 to $50,000. This additional exemption would also be adjusted according to inflation rates. This tax cut has the potential of saving Floridians $1 billion in property taxes annually.
—Make Save Our Homes Portable – Governor Crist proposes making the Save Our Homes cap portable statewide so that homeowners can take their current tax rate with them when they move. In the first year alone, homeowners are expected to save over $200 million in property taxes. By the fifth year, tax savings are expected to be almost $1 billion.
“Many homeowners feel trapped in their homes, unable to move to a larger home or to downsize,” said Governor Crist.
“Property appraisers understand better than anyone the importance of making the Save Our Homes tax cap portable,” said Lee County Property Appraiser Wilkinson. “The reform proposed by Governor Crist will enable young families and retirees alike to relocate without being penalized by a tax increase.”
—Cap Annual Property Taxes on Businesses and Renters – Governor Crist proposes a cap on the assessed value of non-homestead properties that would limit the tax growth rate to three percent or the rate of inflation, whichever is lower. In the first year alone, businesses and renters will save over $600 million in property taxes. By the fifth year, savings are expected to exceed $2.5 billion.
“Business owners and renters have taken on an increasingly larger share of the property tax burden,” said Governor Crist. “This cap will allow them to benefit from the same protection homesteaded properties have enjoyed. Just like Florida families, local government needs to learn to live within its means.”
—Exempt Small Businesses from Tangible Personal Property Tax – Businesses with tangible personal property worth less than $25,000 would receive immediate tax relief. Items such as computers, shelving, machinery and equipment would no longer be taxed. Almost one million businesses are expected to save almost $200 million annually on this property tax.
“According to a recent statewide Florida Chamber survey, more than 60 percent of Florida’s employers have seen their property taxes skyrocket by more than 20 percent,” said Florida Chamber of Commerce Executive Vice President Mark Wilson. “These taxes harm Florida’s business owners, threaten jobs and harm Florida’s economy.”
Lt. Governor Jeff Kottkamp visited a homeowner in Panama City to highlight Governor Crist’s property tax relief budget priorities. “Governor Crist is making good on his promise to cut property taxes and provide relief for all Floridians,” said Lt. Governor Kottkamp. “I share his belief that government should live within its means and pass savings along to the people of Florida.”
Details of Governor Crist’s recommended budget will be released on Friday, February 2, 2007. Visit www.myflorida.com