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STATE: What Undid 'Done Deal'?

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By DAVID ROYSE, The Associated Press

Published: October 20, 2007

Updated: 10/20/2007 11:13 am

TALLAHASSEE - It seemed last week that Gov. Charlie Crist and House and Senate leaders had agreed on a plan to lower property taxes.

There was supposed to be a short formality of a legislative session to approve a proposed constitutional amendment that would be put to voters early next year, and some lawmakers thought they'd be finished by now. But the plan hit a snag this week, with the House and Senate unable so far to agree on details.

So what happened?

After the deal was worked out, the rest of the Legislature came to town. Many - particularly Republicans in the staunchly anti-tax House - did not like the proposal their leaders had worked out ahead of time.

The more House members looked at the tax-cut package, the more they thought of ways they could make it bigger and, in their eyes, better than just a few hundred dollars in savings for the average taxpayer.

Among other changes, a House committee added a new tax break for property other than primary homes at the behest of those who said the package did not do enough for businesses and renters.

That made the bill a much bigger cut than the agreed-on proposal.

Some 'Pretty Good' Ideas

'In the days leading up to us coming to Tallahassee, there was some agreement on some issues,' House Speaker Marco Rubio, a Miami Republican, acknowledged while talking to the House this week. 'But then something else happens, and that is, everyone else comes here. And everyone else who comes up here has ideas about property taxes.'

'And you know what? Some of them have turned out to be pretty good,' Rubio said.

He said the choice was to take the plan that had been agreed to - a plan the Senate passed Wednesday - or to try to make it better in the eyes of House members.

Rubio had made no secret that he did not think the original plan cut taxes enough.

On the first day of the session, while meeting with reporters, Rubio noted that the plan the Legislature was about to approve - which was backed by Crist - would amount to about $20 savings a month for many people.

'Not enough,' he said.

Lots Of Agreement ... To A Point

The basic idea is that property tax exemptions should be increased - and both chambers support a larger homestead exemption. There's also broad support for additional breaks for low-income seniors, although there's disagreement on how much of a break they should get.

The two chambers also agree that the Save Our Homes cap - which limits tax value increases to 3 percent a year for homestead properties - should be portable. That is, when you move, you should continue to have the growth in your tax value limited, rather than starting over with the new house's true value.

Both also agree on a first-time homebuyer tax break and a large exemption from property taxes for business equipment.

After that, they diverge, with the House pushing for a broader array of exemptions for non-homestead properties.

If lawmakers eventually work out details, the whole idea would have to be approved by the state's voters.

Crist and Senate leaders sent the House messages - urging acceptance of a tax cut they don't think is good enough now, with a pledge to try to do more later.

'We actually have a product that I think is very good, that's already available and ready to go,' Crist said, referring to the Senate-passed bill. 'It's hard for me to not be pleased with ... an $11 billion tax cut.'

Most lawmakers have gone home for the weekend while some leaders try to find common ground. The Senate's chief negotiator, 27-year legislative veteran Sen. Daniel Webster, R-Winter Garden, was pessimistic and said the House was essentially breaking an agreement.

Senate President Ken Pruitt also emphasized the deal many had thought was sealed.

'We negotiated with the House of Representatives in good faith and passed a plan that was in keeping with ... our signed agreement,' Pruitt said in a statement.

But the House's lead negotiator, Rep. Dean Cannon, said it wasn't that simple. House members think there is nothing wrong with trying to improve the proposal, he said.

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