Crist pushes property tax breaks

On February 20th, Gov. Charlie Crist proposed giving new property tax breaks to first-time homebuyers and further lightening the tax burden for business, landlords and snowbirds. The proposed property tax breaks for first-time homebuyers could be as much as $5,000.

Crist gave only broad overviews of his latest proposals as he introduced his new budget. The proposals are aimed at invigorating Florida's declining real estate market and helping businesses cope with the recession.

Proposals on the table:
• Limiting the amount that the taxable value of business property, rental housing and second homes can increase each year. Last year, Floridians voted for a constitutional amendment that, among other things, capped increases of taxable value on this type of property at 10 percent a year. Crist’s proposal would further limit the amount of an increase to 5 percent a year. The change would reduce tax revenue for local governments by an estimated $130 million the first year.

• Taxing only half the property value for first-time homebuyers, with a maximum exemption of $250,000 – or about $5,000 in taxes. The new break would be phased out during the first five years of ownership, though buyers would still be eligible for the homestead exemption available to all homeowners. Legislation needed for the constitutional amendment was filed by Sen. Evelyn Lynn, R-Daytona Beach, and Rep. Carl Domino, R-Juno Beach. The measure would reduce annual tax revenue by about $64 million.

• Ensuring that Florida homeowners do not get higher property tax bills in times when house values are declining. A constitutional amendment called Save Our Homes has for years limited growth in the assessed value of homes to 3 percent a year. As a result, many assessments are so far below market value that they are edging up even at a time when prices are dropping. Bills proposed by Sen. Mike Fasano, R-New Port Richey, and Rep. Marcelo Llorente, R-Miami, would pave the way for what Crist called the Homeowner Fairness Bill. The Governor’s Office estimated the measure would reduce tax revenue by $21 million the first year.

• Making it easier for owners to challenge tax assessments by requiring property appraisers to prove their work is valid. The burden of proof is now on owners to show that an appraisal is unfair. This measure, which does not require voter approval, would reduce tax revenue by an estimated $90 million starting in 2009.