wrote:
"Travis Jordan" wrote:

I'm not sure that the proposed amendment to raise the homestead
exemption by 25K per home is a good idea. I'd encourage you to look
into this a little bit before you vote for it - in order to maintain
revenue taxes will simply shift to those with "higher priced" homes
- by my estimate around 300K seems to be the valuation above which
you could expect to pay higher taxes. Since Amendment 10 applies to
market valuation, not to tax rates there isn't any law to prevent the
municipalities from simply raising rates to make up for the lost
income. Which of course they will do. I don't see that information
anywhere in the hoo-hah publicity touting the increased homestead
exemption. In fact, the web site for the proponents says that
taxing authorities already have a 'windfall' from increasing
property values so they don't need any more money. Of course, how
silly of me.

I understand that concern, but I'm not sure that it applies. The
raising of property tax rates would most directly affect _new_ home
buyers of houses valued at $300K or more, and thus cool the real
estate market to a point that would be unacceptable, especially now
that it appears interest rates may rise. Just like in "Sim City"
higher tax rates equate to slower growth (a gross oversimplification,
but generally true).

However, the current cap on increases is _not_ affected, and since
the yearly tax increases for current property owners already come at
or close to the legal limit, from what I've experienced, the new
amendment would still have a positive effect for long-term home
owners unless the tax rates went totally wild. In essence, I would
pay less property tax, and new purchasers of more expensive
properties would pay more property tax. While I don't have a serious
problem with the ethics of that, I don't think that it will play out
that way - either in general statewide, or on a local level - where
our town has been fiscally responsible.

The proposed amendment will more likely result in county add-ons to
the sales tax, and increased property taxes upon commercial property,
including apartments. Broward is currently about the only county
without an added county sales tax, so that first part is almost a
given where I live. Since businesses have increasingly been allowed
tax concessions to locate in a town, I don't take issue with their
taxes going up.

The un-needed "windfall" propaganda is just propaganda that can be
dismissed out of hand, but I do feel that a realistic homestead
exemption is in the best interest of fixed income seniors and those
who struggle to keep their property, and that the adjustment is only
fair. Inflation, which is what this is really about, is a hidden tax
that politicians don't have to answer for.

Whereas the save-our-homes amendment now has an increasing effect of
slowing the musical chairs style of real estate sales here, and
improving the feel of community, I see the new amendment less as a
quality of life issue and more as a redistribution of the tax burden
that more accurately reflects current day valuations. I certainly
respect that not everyone feels this way.

http://www.myflorida.com/dor/property/limitations.html

Unfortunately, Amendment 10 only caps the ASSESSED VALUATION of
homesteaded property. The millage RATE isn't capped. If the property
tax decreases for homeowners across the state by an estimated $611 each
the cities and counties will raise the millage rate to make up for the
lost revenue. You are correct that some locales may find it more
politically popular to raise sales taxes.