Voters in 2018 will have the chance to pass an increased homestead tax exemption of $25,000 now that the bill to do so has passed both the Florida House of Representatives and the Senate. City and county authorities across the state are concerned about the millions of tax dollars local governments will lose.
The current exemption treats a $100,000 home as if it were worth $50,000 for tax purposes. With the Florida Senate’s passage of House Joint Resolution 7105, that drops that to $25,000.
An amendment to the bill apparently reduces the overall impact it will have on local taxing authorities according to the Florida Association of Counties. Before the amendment, the FAC estimated Santa Rosa County would lose $4,726,932. However, the amendment drops that number to $3,613,375. The state impact of $738,732,307 drops to $587,460,139.
“I don't think the budget is gutted now but we’ll definitely look at cutting services,” Santa Rosa County Commission Chairman Rob Williamson said. “I’m not voting for a tax increase so there is no other option.”
The tax burden will be placed on local business owners and non-homestead property owners who must choose between more taxes or fewer services according to a FAC release.
“It sounds all well and good, but the problem is it’s not a tax break but a tax shift,” Williamson said.
Businesses and those with rental properties whose taxes would increase would likely pass on the loss according to Williamson. “Decisions have consequences.”
A related bill, HB7107, establishes the implementation of the exemption bill, but a problem Williamson has with it is it acts like a subsidy for 29 fiscally constrained counties.
Language in HB7107 requires the legislature to give money to counties to offset reductions in tax revenues as result of the resolution.
“I have a fundamental issue with taking money for the redistribution of wealth. What we'll do is we’ll take money from Santa Rosa County taxpayers and give it to other counties for policy dressed up as a tax cut,” Williamson said.
Senator Doug Broxson did not say if he supported the measure or not, only that the Senate will let the voters decide.
“We voted to allow the people of the state to send the counties and cities a message if they want their ad valorem (tax) reduced,” Broxson said. “I could debate it both ways and, frankly, as a citizen, I could debate either to do it or not to do it, but really that’s not the decision we made. We did not vote to increase the homestead. We said if the citizens of the state want to increase the exemption, we’ll give them that option.”
The 2018 Florida gubernatorial election will take place on November 6. If voters pass this bill, it will be implemented January 1, 2019.
This article originally appeared on Santa Rosa Press Gazette: Increased tax exemption for property owners would mean reduced revenue for Santa Rosa County