Florida’s population growth rate has plunged to 0.7 percent. School population rates declined by 35,000 students in 2008 and senior citizens are choosing other, less expensive states in which to own a winter home and retire. In short, people are no longer coming to Florida. And there is strong evidence suggesting many are leaving due to reduced employment opportunities and the high cost of living.

Chief among those high costs are property taxes. They sky rocketed by 79.9 percent from 2001 to 2006 – far outpacing inflation and population growth over the same period. 

The Florida Legislature should resolve the Save our Homes recapture rule that has allowed property taxes to increase while property values decrease. Lawmakers should also support property tax benefits for first-time homebuyers which will allow more young families to access the American dream of homeownership. Finally, any comprehensive fix to property taxes must include a cap on impact fees so that local governments cannot continue to offset the potential reduction of property tax revenues on the backs of new home buyers.

Week of April 27 – Important property tax reform legislation, which provides a 25 percent property tax benefit to first time home buyers, passed. This measure also caps the annual increases in property taxes at 5 percent for commercial and residential rental properties. SJR 532 by Sen. Evelyn Lynne, R-Daytona Beach, also adds greater fairness to Florida’s property tax system, and it will help jump-start the state’s real estate market. FHBA also thanks Rep. Carl Domino, R-Juno Beach, for sponsoring the House companion.

Week of April 13 – The House Economic Development and Community Affairs Policy Council passed HB 1087 by Rep. Marcelo Llorente, R-Miami – a measure dealing with the Save Our Homes recapture rule. This bill would revise requirements for annual changes in assessments of homestead property to prohibit increases in assessed value of the property if market value decreases. It is now poised to be heard by the House Finance and Tax Council.

Week of April 6 – HFR 97 by Rep. Carl Domino passed the House Finance & Tax Committee. It provides first time home buyers with a 50 percent property tax reduction, which phases out over five years. This concept could help stimulate home purchases and broader economic activity. FHBA’s Vice President of Legislative and Governmental Affairs, David Hart, testified in support of the bill along with Governor Charlie Crist. HB 7057, which caps the annual increases in property taxes at 5 percent for commercial and residential rental properties cleared its final committee stop and now heads to the House floor. If passed by the Legislature, both of these resolutions are proposed Constitutional Amendments that will require the approval of voters in 2010.

Week of March 30 – HB 7057 passed out of the House Finance Committee. This measure reduces the cap on annual increases in assessments of non-homesteaded real property – limiting it to five percent. This measure, if passed by the both Chambers, would go before voters in the form of a constitutional amendment.

Week of March 23 – A measure that would give first-time home buyers that have never claimed a Florida homestead a property tax break moved out of the House Economic and Community Affairs Committee. HJR 97 by Rep. Carl Domino, R-Jupiter, would give first-time home buyers that have never claimed a Florida homestead a 50 percent property-value exemption; the exemption would phase out over five years. The measure, if passed, would go before voters as a constitutional amendment in November 2010 and require a 60 percent voter approval to become law. Another property tax break measure, HB 7057, also passed out of the same committee. HB 7057 reduces the cap on annual increases in assessments of non-homesteaded real property. The cap would be reduced from 10 percent to 5 percent. This measure, if passed, would also go before voters in the form of a constitutional amendment.

Week of March 9 – The Florida House Military & Local Affairs Committee passed a Proposed Committee Bill that would give first-time home buyers that have never claimed a Florida homestead a 50 percent property-value exemption; the exemption would phase out over five years. If the Legislature passes this initiative, it would go before voters as a constitutional amendment in November 2010 and require 60-percent voter approval to become law. The House committee also passed a separate 2010 ballot initiative that would cap all property taxes collected by schools, local governments and special-taxing districts at 1.35 percent of a home’s value. "This is the answer to what you can do this session to help stimulate the market," David Hart, FHBA Vice President of Legislative and Governmental Affairs told lawmakers when testifying in support of the tax break. Echoing Hart’s comments was Rep. Keith Fitzgerald (D-Sarasota) who called it an “elegant” solution to Florida’s housing crisis. "It gets right to the heart of where our economic breakdown is -- which is the backup inventory in the housing market.”