McCollum touts property tax freeze for local governments

Like most municipalities in Florida, Tampa has cut its budget for four years in a row because of state-mandated property tax reforms and declining housing values.

Despite that, the city has held the line on property taxes, keeping them at the same rate.

But Republican gubernatorial candidate Bill McCollum says that if elected, he will seek to impose a two-year freeze on property tax rates for local governments across the state.

"For the good of Florida's economy, I'm saying we need to take a time out," McCollum said Tuesday afternoon during a meeting with The Tampa Tribune's editorial board.

If property values continue to decline, McCollum argues that local governments will be tempted to increase their property tax rates to make up for lost operating revenue.

"That's the reason we need a freeze," he said. "In the long-term, spending limits will ensure that government never grows faster than the communities they serve."

Municipal leaders say McCollum's proposal would take the right to control local tax rates out of the hands of local officials at a time when many are struggling to provide services.

Since 2006, Tampa has cut about $124 million from its budget and reduced its workforce by 673 positions, or 13.3 percent, amid state-mandated property tax reforms. Roughly 33 percent of the city's annual operating funds come from local property taxes.

Mayor Pam Iorio, who said she was not familiar with McCollum's proposal, said a property tax freeze would mean a further decline in services.

"If McCollum is suggesting that local governments cut their revenues even more significantly, and thus reduce core services even further, then he will create a situation whereby the quality of life for residents will suffer," Iorio said.

Iorio's preliminary 2011 budget, which will be presented to the city council on Aug. 12, maintains the property tax rate of $5.73 per $1,000 of taxable value for the fiscal year beginning Oct. 1. Under that rate, the owner of a house assessed at $200,000, with the standard $50,000 homestead exemption, would pay about $860 in city taxes.

Recent polls show McCollum trailing behind his opponent in the GOP primary, self-financing millionaire Rick Scott, with less than a month to go until the primary.

Politico.com reported on Tuesday that an internal poll shows McCollum losing to Scott 37 percent to 31 percent in a primary, with a majority of the voters still undecided.