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Legislators Mark Tax Code

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By CATHERINE DOLINSKI, The Tampa Tribune

Published: January 31, 2008

Updated: 01/31/2008 12:14 am

TALLAHASSEE - Gov. Charlie Crist promised voters that if Amendment 1 passed Tuesday, it would be the start, not the end of property tax relief in Florida.

Asked Wednesday what's next, Crist was characteristically vague about the details.

"I need to consult with my friends in the Legislature," he said in an interview.

Even critics of Amendment 1 acknowledge that its easy passage sends a strong message from voters: Florida's tax system is broken.

"Nobody disputes that we have terrible inequities in the tax code that have created immense frustration," said House Minority Leader Dan Gelber, who voted against the tax cut.

Crist said Wednesday he wants to cut taxes further. But with the battle over the ballot question over, some leaders say it's time to make fundamental changes to the entire system, not just find ways to stuff a few extra dollars into homeowners' pockets.

Increasingly, attention is turning to the state's powerful Taxation and Budget Reform Commission, an appointed body that meets once every 20 years. Its members have the power to place questions directly on the ballot without collecting signatures or approval from lawmakers.

"What I took away from this vote, there's a difference between tax relief and tax reform," said Ken Wilkinson, a Taxation and Budget Reform Commission member.

"We just passed tax relief, but not everybody gets the same relief ... tax reform is where the process changes, and everybody benefits the same. I think now, with this behind us, we can concentrate on some true tax reform."

A Focus On Sales Tax Exemptions
Wilkinson, property appraiser for Lee County, supports a plan from commissioner and former Senate President John McKay to mandate a review and repeal exemptions and exclusions from the state sales tax, and use those sources of revenue to give back to the schools' budget.

McKay suggested that his proposal will pass muster with voters because it would lower property taxes substantially.

"Economists tell us that property taxes are not a good way to finance Florida in the future," he said.

Lance deHaven-Smith, a political scientist at Florida State University, said the commission probably has the best chance to make meaningful changes to the system because its members aren't elected.

On Wednesday, the commission tentatively approved a tax reform plan that could appear on the November ballot. It would exempt a property from ad valorem taxes if its owners dedicated it to conservation purposes.

Taxes are only one of three major burdens on Florida residents that state leaders must tackle, House Speaker Marco Rubio said in an interview Tuesday evening. The others, he said, are the high costs of insurance and energy.

But property taxes, Rubio said, remain the component that government can probably affect the most. "We could do an additional statutory tax rate rollback; we could pass another constitutional amendment; there are a lot of things we can do."

Rubio supports an $8 billion plan for a flat 1.35 percent cap on all property taxes.

The proposal is the brainchild of St. Petersburg surgeon David McKalip, who said Tuesday that his group, Cut Taxes Now, had collected about 115,000 signatures; 611,000 are needed to reach the November ballot. The group hopes to persuade lawmakers to propose it.

The 1.35 percent cap plan lacks support in the Senate, but Mike Haridopolos, chairman of the Senate Finance and Tax Committee and co-author of Amendment 1, said Rubio may be able to propel the issue through the Senate.

Revenue Cap Suggested

Haridopolos wants to make it easier for property owners to challenge the valuation assessments of their properties.

Owners have the right to appeal their assessments to value adjustment boards, but "many of those boards are stacked against the taxpayer; often the judge and jury are those who set the tax rate in the first place."

Haridopolos said momentum also is growing in the Senate behind some form of revenue cap for local governments because many responded to last year's mandatory tax rate rollback by raising assessments and various fees.

Cragin Mosteller, spokeswoman for the Florida Association of Counties, said lawmakers need to first determine how the tax measures they have passed are going to affect Florida's financial health.

"You've got to give some of these things a chance to shake out," she said.

Reporter William March contributed to this report. Reporter Catherine Dolinski can be reached at (850) 222-8382 or cdolinski@tampatrib.com.

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