This website focuses on improving resource management of Lake County, Florida local government spending. Tax issues are a concern because if government resources are not professionally managed, then there is pressure to increase taxes to offset the resulting inefficiencies. ALSO, see the links at the bottom of this post. vj
from the Orlando Business Journal
http://orlando.bizjournals.com/orlando/stories/2006/12/18/daily4.html
Report: Crisis looming for state's property tax system
Florida's property tax system faces a crisis due to rising levies and local government spending that exceeds the taxpayers' ability to pay, a new report released by Florida TaxWatch finds.
Dominic M. Calabro, president and CEO of the nonprofit, nonpartisan government watchdog group, notes that his organization has seen a big increase in the volume of calls and e-mails from upset taxpayers, who believe the property tax system is "unfair and unaffordable."
The report partially blames the state's Save Our Homes amendment to the state constitution. Since it took effect in 1995, it has limited annual increases in homesteaded property to 3 percent or the increase in inflation, whichever is less, Florida TaxWatch says.
The report says that while holding down taxes for many homeowners, the amendment has brought on myriad problems, shifting billions of dollars in taxes from homesteaded taxpayers to non-homesteaded businesses and those with second properties, creating inequities in tax treatment, increasing housing costs for renters and new home buyers, and restricting the financial ability of some people to move to a different home.
The report urges the repeal of a 3 percent cap on homesteaded property owners' annual tax bills while maintaining taxpayers' current savings, a cap on local property taxes and revenues, and a fairer system for assessing a property's value.
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My Comments: I am from California which has a "Proposition 13" law that also puts limits on property tax growth, but it applies to EVERYONE, not just homesteaded homes. They also allow homeowners to move to many other counties and take their existing rate with them as they retire and downsize (certain rules apply). Tax watch seems to take the side of naive complainers who bought more expensive second homes without homesteads, and they should have known the tax load just like they knew the purchase price. The Florida "Save our Homes" regulations seem to protect the full time Florida resident from constantly increasing taxes. Rather than eliminate that, the tax cap should be extended to all property owners, including businesses. The worst thing is to allow the government to constantly re-assess existing properties for higher windfall taxes based upon market rates, which forces people to sell properties only because they cannot afford the ever higher rates. Taxpayers need price protection from excessive government re-assessment and increased taxes. i.e. if the economy grew 2%, there is no reason government should be able to receive a 10% tax hike because property values went up. This happened in California and government agencies became spendaholics until the public voted in the very strong Proposition 13 in the 1970's.
The newspapers RARELY ever give out the website of the source organization, like Florida Tax Watch, but WE do, and Florida Tax Watch has their full report for you to download:
http://www.floridataxwatch.org/
TaxWatch also posts the link to the Florida Property Taxpayers "Bill of Rights" at:
http://dor.myflorida.com/dor/pdf/PTbillofrights.pdf
vj
vj
