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Ballot Leaves Leaders Uncertain

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By CHRISTIAN M. WADE and NICOLA M. WHITE, The Tampa Tribune

Published: January 27, 2008

Updated: 01/26/2008 04:11 pm

NEW PORT RICHEY - In the last round of statewide property tax reforms, the leaders of Pasco County's six municipalities had a clear mandate from lawmakers: Reduce taxes.

The Legislature gave each community a figure, ranging from a 9 percent cut to no cut, they were required to meet.

This time, the edict is less clear.

Floridians go to the polls Tuesday to vote on a constitutional amendment, the result of months of wrangling over what many consider to be a broken property tax system.

If approved, the ballot question would double the homestead exemption and allow homeowners to transfer up to $500,000 of their Save Our Homes benefit if they move, the so-called portability clause.

Plus, Amendment 1 would create a $25,000 exemption on tangible property and cap increases on the taxable value of non-homestead property.

For Pasco County's leaders, the uncertainty stems not just from whether voters will approve the measure, but on how much the changes could cost them.

In New Port Richey, the county's most populous city, officials estimate revenue losses of more than $400,000 this year if voters approve the tax-reform initiative.

But, even if that happens, it's not clear how many relocating homeowners would take their tax breaks with them.

"The portability issue is the big unknown," city Finance Director Rick Snyder said. "With the state of the economy, we don't know how soon people would try to sell their homes."

Cutbacks May Be Needed

If the amendment passes, he said, New Port Richey likely will have to cut some services and enact a hiring freeze.

"We have some ideas on the table," he said. "But we're waiting to see what happens."

In Zephyrhills, Amendment 1 would translate into an estimated $350,000 drain from the general fund this year, City Manager Steve Spina said.

"I'm not worried about the big things. I'm worried about the day to day - running the police and fire department and trying to keep the library open," Spina said.

Recently, the fire chief asked the city council to consider spending $400,000 on a vacant building to house the fire department's administrative offices. But council members said they couldn't justify spending that much in these uncertain budgetary times.

In Dade City, officials anticipate a $290,000 drop in tax proceeds - or about 5 percent of the general fund, according to figures provided by Interim City Manager Jim Class.

"The commission would have to decide, along with staff, what's going to be our priority," Class said. "Where are we going to cut back? What are we going to be able to continue?"

Port Richey officials have estimated revenue losses at $157,000, but staff has been unable to put a figure on portability's impact.

"I think we're going to be alright," Mayor Richard Rober said. "We have some money in our reserves that will help us pick up the slack. We've been very fiscally responsible."

In San Antonio and St. Leo, the amendment would have less financial impact, but that doesn't mean officials there are pleased with it.

"I'm a strong advocate of keeping taxes down, but this is just bad legislation," said San Antonio Mayor Roy Pierce. "This is a typical knee-jerk reaction from the government."

Crist's Support Angers Some

Frustrating municipal leaders is that they've had to stand on the sidelines while amendment supporters have been running a well-funded public relations campaign.

Few cities, it seems, are willing to spend taxpayer money to sway voters.

And Gov. Charlie Crist's vocal support of the amendment chafes some local officials.

"Why is the governor taking my citizens' tax dollars to fight my city?" asked Pierce, a registered Republican. "It seems to me that that is a serious conflict of interest."

Municipal leaders also predict that state lawmakers will come back in the upcoming legislative session with yet another round of proposed property tax reforms.

That, they say, only adds to the uncertainty.

"If I was nervous about tax cuts last year," Snyder said, "this year I'm just numb."

Reporter Christian M. Wade can be reached at (727) 815-1082 or cwade@tampatrib.com. Reporter Nicola M. White can be reached at (813) 779-4613 or nwhite1@tampatrib.com

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