It's a crap shoot. How the dice fall is anybody's guess at this point. New developments on Florida's property tax reform are in flux daily, since a judge this week ordered the proposed amendment off the January 2008 ballot. On Monday, Leon County Judge, Charles Francis, deemed the ballot language confusing and misleading and ordered the proposed constitutional amendment off the January 29, 2008 ballot. The ballot issue went to court because the Mayor of Weston, FL (Broward County), Eric Hersh, sued, indicating the tax reform plan (featuring the Super Homestead Exemption) and the ballot wording misled Florida voters.
Judge Francis reportedly felt "the language at issue is misleading and confusing, and does not provide fair notice to the voter, educated or otherwise, of the purpose and effect."
While the ruling was appealed by the state of Florida on Wednesday (the outcome of the appeal is yet to be seen), other tax cutting ideas are re-surfacing already in the past three days since the Judge's ruling. They run the gamut from reviving the “no more property tax” proposal to doing nothing at all. The Citizens for Property Tax Reform of South Florida are proposing a 30-40-50 plan.
Interestingly, another wild card is in play, since the Florida Taxation and Budget Reform Commission, an organization that by statute reportedly only meets one time every 20 years, is having their “reunion” this year. The committee has the power to come up with their own version of tax reform and put it to the voters. They have been scheduling hearings around Florida in September/October, inviting the public to share views on Florida taxation and budgeting. See the Florida Taxation and Budget Reform Commission's website .
Many thought the proposed tax relief plan, just kicked off the ballot, was “not good enough.” Thus, some are relieved, even pleased the proposal was removed from the ballot. Now a possible opportunity exists for a “do-over.” It just so happens that legislators are due to go into October meetings starting on the 3rd, so they will be in session soon. There appears to be a window opening to fix the tax reform plan and come up with an improvement of the so-called Super Homestead Exemption proposal.
So, the heat is on in Florida, and not just from the sunshine. Deadline pressure is keen, and Florida taxpayers have demanded substantial relief. Amendments reportedly have an October 28, 2007 deadline for submission (to be on the January 2008 ballot). Will the legislators have enough time to revise the tax reform plan and produce another tax relief proposal? If they can't get it done in time for the January ballot, then further tax reform would have to wait until the November 2008 election. This translates to further tax relief for Floridian property owners not being realized until at least 2009, under this scenario.
The proposed tax reform plan needed a 60% majority vote to pass, and was highly controversial. It was looking dubious as to whether it would pass the approval of Florida voters in January. Favoring primary residents (homesteaded property owners), it contained little tax relief for second homeowners and investors. Also, the long-term result of the proposed tax reform legislation was the phase out the Save Our Homes 3% tax cap protection that has kept taxes lower for primary residents in Florida (a maximum annual tax increase of 3% on homesteaded properties).
For more details on the recent developments since the court ruling, see related articles:
September 27, 2007 article from southeast Florida's Herald Tribune, "As one tax proposal founders, others are emerging."
St. Petersburg Times article (September 26, 2007), “Legislators At Odds Over Tax Bill Again.”
Miami Herald article (September 26, 2007) "State appeals removal of tax amendment from Jan. 29 ballot."
See also Amelia Island Living© eMagazine article (September 6, 2007), "The Florida Property Tax Quandary," http://www.ameliaislandliving.net.