The Senate on the tax plan

Here's the full text of an announcement from state Senate President Ken Pruitt, outlining the major points of the property tax plan the Legislature is likely to pass in the next few days:

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To:                   All Senators

From:              Ken Pruitt, President

Date:               October 10, 2007

Subject:          Summary of Proposed Property Tax Plan

 

As I mentioned in my earlier e-mail today, I am sending an outline of the Senate’s proposed property tax plan. For your convenience the text is both attached and pasted below. We expect to have drafts of the bills and joint resolutions on Friday.

Outline of the Proposed Senate Property Tax Plan

Doubles the homestead exemption by providing an additional $25,000 exemption for assessment amounts between $50,000 to $75,000.  This increased exemption will not apply to school millages.

Provides portability of Save Our Homes tax breaks by providing 100% portability of the SOH differential, up to 1 million dollars, for homeowners who upgrade to a more expensive home, and proportional portability for homesteaders who move to a less expensive home.  This increased exemption will not apply to school millages.

Provides a $25,000 exemption for Tangible Personal Property.

Creates a new exemption for first-time homesteaders that equals 25% of the just value of the property, capped at 25% of the prior year’s residential median just value for the county, but which is phased out as the new homesteaders’ Save Our Homes differential increases.  This increased exemption will not apply to school millages.

Grants “low-income seniors” a significant new exemption with eligibility based on household income and home values. This provision will apply to school millages.

Affordable housing.   This provision will allow property utilized for affordable housing to be assessed at less than just value.  To qualify the property will have to be subject to rent restrictions imposed by a government authority.  This provision will provide protection to renters from dramatic increases in rent attributable to rising property tax assessments.  This provision will not apply to school millages.

Working waterfronts.   This provision will allow property located on the water and used for commercial activities, also known as “working waterfronts”, to be assessed at less than just value instead of the “highest and best” use.  Presently, a waterfront marina may be assessed as if it were a high-rise condominium because that would be the “highest and best” use of the property in the context of generating property taxes.  This provision will allow the marina to be assessed at something other than just value and more akin to the property’s actual use, not its potential use. This provision will not apply to school millages.

Presumption of Correctness/Burden of Proof .  This provision will remove the presumption of correctness given to property appraisers for challenges to assessments involving properties whose just value increases more than the county average for their class.  This helps level the playing field for property owners so that the property tax assessment process is not tilted in favor of the government.  This provision may affect school millages.

Elected Property Appraisers.   This provision will require that all property appraisers in the state be elected by the voters.  This will address concerns in those jurisdictions where the property appraisers are hired by the mayor or commissioners and make sure that the property appraisers are accountable to the voters.