Crist enters property tax fray with own plan
Governor’s proposal would save taxpayers $34B over next five years
By Michael Peltier
Thursday, April 26, 2007
TALLAHASSEE — Confident lawmakers can settle their differences, Florida Gov. Charlie Crist outlined
his own plan that would save property taxpayers $34 billion over the next five years.
Flanked by charts and a trio of citizens flown in to prove his point, Crist released details of a proposal
that calls for an immediate tax rollback, a doubling of the state’s homestead exemption and an
expansion of savings to first-time home-buyers and small-business owners.
“I would encourage the House and Senate to rally our plan,” Crist told reporters. “We think it is
responsible. We think it is reasonable. We think it grants relief. It does find common ground we can all
live with.”
Crist’s plan comes as House and Senate negotiators remain at an impasse over how to provide tax
breaks to residential and commercial property owners. The two chambers remain at odds over
whether to raise sales taxes to partially offset some of the tax cuts.
Like both House and Senate proposals, Crist’s plan calls for an immediate rollback. Under his version,
taxes would be cut about $4 billion statewide during the first year.
Crist then calls for doubling the homestead exemption to $50,000 and providing first time homebuyer
with a 25 percent exemption based on the price of their home. The plan also gives homeowners the
option of taking all their Save our Home savings with them when they move.
For commercial property owners, the governor calls for a $25,000 exemption in tangible personal
property.
Legislative negotiators temporarily suspended talks Thursday. The legislative session ends May 4.
On one front, Crist sides with the Senate by not including a sales tax increase as part of his plan. The
House has called for up to a 2.5 cent increase in state sales tax. The Senate has rejected the proposal.
“Some of us might want more cuts, some of us might want some different elements,” Crist said. “But
what is consistent is that there is something that we can agree upon by a week from (today.)”
The House has proposed about $41 billion in savings over the next five years. The plan, backers say,
will save the average homeowner $1,200 a year. Non-homestead residential owners would save $750
while commercial property owners would save $3,300.
On Thursday, House Speaker Marco Rubio said he doesn’t care whose plan is adopted as long as such
savings can be realized.
“Ultimately, what’s important to people is not what bill passes or how many e-mails we get,” Rubio
said. “What’s important to people is the next time they get a bill can they afford to pay it. Do they notice
it or not? Does the tax that they get change the way they live?”
Rep. Nick Thompson, R-Fort Myers, says his constituents are adamant that a sales-tax hike is
acceptable if it will further reduce their property taxes.
“In my town-hall meetings, everyone is in favor,” Thompson said.
Rep. Garrett Richter, R-Naples, said he’s getting a mixed message on sales tax.
“What my constituents can’t live with is no tax break at all,” Richter said.
Senate negotiators say their plan would save homeowners about $15 billion over five years and give
homestead property owners protection if they move. The plan also provides exemptions to
commercial property owners and first-time homebuyers.
Legislative leaders Thursday welcomed Crist’s entry into the debate.
“The governor is entitled to his opinion,” said Senate President Ken Pruitt, R-Port St. Lucie. “I love our
governor and I’m delighted that he has provided some input.”
Crist urged both leaders to continue working toward a compromise that can be reached within the
next week.
“A good decision can be made in a second,” Crist said. “And we’ve got lots of seconds between now
and next Friday. I remain very optimistic.”
Governor’s proposal would save taxpayers $34B over next five years
By Michael Peltier
Thursday, April 26, 2007
TALLAHASSEE — Confident lawmakers can settle their differences, Florida Gov. Charlie Crist outlined
his own plan that would save property taxpayers $34 billion over the next five years.
Flanked by charts and a trio of citizens flown in to prove his point, Crist released details of a proposal
that calls for an immediate tax rollback, a doubling of the state’s homestead exemption and an
expansion of savings to first-time home-buyers and small-business owners.
“I would encourage the House and Senate to rally our plan,” Crist told reporters. “We think it is
responsible. We think it is reasonable. We think it grants relief. It does find common ground we can all
live with.”
Crist’s plan comes as House and Senate negotiators remain at an impasse over how to provide tax
breaks to residential and commercial property owners. The two chambers remain at odds over
whether to raise sales taxes to partially offset some of the tax cuts.
Like both House and Senate proposals, Crist’s plan calls for an immediate rollback. Under his version,
taxes would be cut about $4 billion statewide during the first year.
Crist then calls for doubling the homestead exemption to $50,000 and providing first time homebuyer
with a 25 percent exemption based on the price of their home. The plan also gives homeowners the
option of taking all their Save our Home savings with them when they move.
For commercial property owners, the governor calls for a $25,000 exemption in tangible personal
property.
Legislative negotiators temporarily suspended talks Thursday. The legislative session ends May 4.
On one front, Crist sides with the Senate by not including a sales tax increase as part of his plan. The
House has called for up to a 2.5 cent increase in state sales tax. The Senate has rejected the proposal.
“Some of us might want more cuts, some of us might want some different elements,” Crist said. “But
what is consistent is that there is something that we can agree upon by a week from (today.)”
The House has proposed about $41 billion in savings over the next five years. The plan, backers say,
will save the average homeowner $1,200 a year. Non-homestead residential owners would save $750
while commercial property owners would save $3,300.
On Thursday, House Speaker Marco Rubio said he doesn’t care whose plan is adopted as long as such
savings can be realized.
“Ultimately, what’s important to people is not what bill passes or how many e-mails we get,” Rubio
said. “What’s important to people is the next time they get a bill can they afford to pay it. Do they notice
it or not? Does the tax that they get change the way they live?”
Rep. Nick Thompson, R-Fort Myers, says his constituents are adamant that a sales-tax hike is
acceptable if it will further reduce their property taxes.
“In my town-hall meetings, everyone is in favor,” Thompson said.
Rep. Garrett Richter, R-Naples, said he’s getting a mixed message on sales tax.
“What my constituents can’t live with is no tax break at all,” Richter said.
Senate negotiators say their plan would save homeowners about $15 billion over five years and give
homestead property owners protection if they move. The plan also provides exemptions to
commercial property owners and first-time homebuyers.
Legislative leaders Thursday welcomed Crist’s entry into the debate.
“The governor is entitled to his opinion,” said Senate President Ken Pruitt, R-Port St. Lucie. “I love our
governor and I’m delighted that he has provided some input.”
Crist urged both leaders to continue working toward a compromise that can be reached within the
next week.
“A good decision can be made in a second,” Crist said. “And we’ve got lots of seconds between now
and next Friday. I remain very optimistic.”
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