TALLAHASSEE, Fla. – Voters next year could be asked to expand Florida's homestead property-tax exemption, under a measure introduced Wednesday in the House that quickly drew objections from local governments.
As a companion to a nearly $300 million tax-cut package, the House Ways & Means Committee voted 13-6 to approve a proposal (PCB WMC 17-04) that would ask voters in November 2018 to expand by $25,000 the non-school homestead exemption.
Rep. Mike La Rosa, a St. Cloud Republican and real-estate developer who is handling the bill for the committee, said it is about making homeownership more affordable. A similar proposal (SJR 1774), filed by Sen. Tom Lee, R-Thonotosassa, has been approved by one committee.
"At minimum, this constitutional amendment gives the ability of homeowners and non-homeowners to make a decision if they want to lower their costs of owning a home and achieve that American dream," La Rosa said.
The state Revenue Estimating Conference projected that, if approved by voters, local governments collectively would see non-school property-tax revenue drop by $752.7 million annually starting in the 2019-2020 fiscal year.
Committee Chairman Jim Boyd, R-Bradenton, had estimated the change would save property owners an average of about $170 a year.
Voting against the proposal, Rep. Don Hahnfeldt, R-The Villages, asked if it was unreasonable to force local governments to "sharpen their pencils" to enact further budget cuts that will be felt most by those who need local services.
"This is an idea that is great in intention, but is at best a feel-good for legislators and it's going to be devastating for our communities," Hahnfeldt said.
Meanwhile, Rep. Al Jacquet, D-Lantana, voted for the measure after briefly proposing an amendment that would have boosted the exemption to cover up to $150,000 of a property's assessed value.
"Let's put our people first," Jacquet said. "I did not hear from one taxpayer in my district who said this is a bad idea."
Adam Cockrell, who's building a home in the Crossing at Bartram, agreed that it's a good idea.
"I think it's great for the homeowners. Obviously, the tax breaks we're going to get would really help out homeowners," Cockrell said. "As far as the city of Jacksonville, I understand that they may take a little bit of a hit because they won't collect as much money off the taxes of the homes if the homestead exemption is expanded."
Local officials from across the state told lawmakers that the proposed constitutional amendment would put more of the tax burden on fewer people and force county and municipal governments to decide if they would cut services or increase taxes.
Duval County Property Appraiser Jerry Holland told News4Jax Thursday that he's been looking at the impact expansion would have.
By his calculations, a homeowner earning the highest exemption -- with a home value of at least $100,000 -- would see taxes reduced by $294.
The trade-off would be loss of revenue to the city of Jacksonville.
According to Holland, it could mean more than $36.6 million less in revenue.
News4Jax also spoke with St. Johns County Property Appraiser Eddie Creamer, who said his team started researching the bill Thursday -- just one day after it was filed.
Creamer said there are currently more than $63,000 homestead exemptions in the county. His preliminary view is that expansion would reduce revenue to the county by $7 million.
So what looks good to homeowners now, may look monstrous to municipalities and may see taxpayers pick up the slack eventually anyway.
"Hey, it's an easy political sell to say, 'We're going to lower your taxes.' But I think it's much more difficult thing to finance a government and then have government run efficiently," said Sam Langham, a licensed real estate broker and homeowner. "Are they going to ask me to pay an additional quarter-cent in sales tax, or is there going to be an additional tax in a different place?"
The savings for homeowners would cut Seminole County revenue by more than $16.5 million, Orange County would see a revenue reduction of $35.3 million, and Leon County about $9 million, according to local officials. Palm Beach County could see a revenue drop by $29 million.
Edward G. Labrador, a lobbyist for Broward County, estimated the homestead change would result in a $38 million reduction in revenue for Broward, more than "what we fund countywide for parks and recreation."
Nancy Detert, a former state lawmaker now on the Sarasota County Commission, told the committee that solving road gridlock and improving quality of life are concerns for her local government, where the measure would cut revenue by $7.7 million.
"It's well intentioned," Detert said of the proposal. "I think we have different problems, and those different problems require funding."
Miami-Dade County Commissioner Sally Heyman, also a former state lawmaker, said her county could be out $76.8 million in revenue if voters approve the change, requiring a $17.5 million cut just to fire-rescue services.
"If this legislation is really about tax relief for our citizens of Florida, let's not punish the local governments who are delivering services, sometimes underfunded, to all of our citizenry," Heyman said.