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Real Estate Group Rallies For Tax Amendment

Carl Orth/SUNCOAST NEWS

State Rep. John Legg, R-Port Richey, spoke passionately at today's rally of the West Pasco Board of Realtors to support passage of the statewide property tax amendment on the Jan. 29 presidential primary ballot.

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By Carl  Orth | The Suncoast News

Published: January 11, 2008

NEW PORT RICHEY, Fla. - NEW PORT RICHEY, Fla. - Some 160 real estate agents gathered for a rally today to persuade residents to vote in favor of the property tax constitutional amendment on the Jan. 29 ballot.

"Vote Yes on Amendment 1" a sea of signs read at the West Pasco Board of Realtors headquarters on Sunset Road.

State Sen. Mike Fasano and state Reps. John Legg and Will Weatherford, all Republican members of the Pasco legislative delegation, spoke forcefully in favor of the amendment.

For the first time ever, more people have been moving out of Florida than have been moving here, Weatherford said in urging voters to approve the amendment.

The state budget has doubled since 1994, when Fasano entered the Legislature, as a member of the House of Representatives. The Long Island, N.Y., native can still recall homes selling for $7,000 when his family moved here when he was 13.

Florida used to enjoy a reputation as an affordable state, Fasano said.

Legg spoke passionately about the right to own property as a "fundamental freedom" threatened by high taxes and insurance rates.

"It's not perfect, but it's a start," Weatherford said about Amendment No. 1, which is opposed by many local government elected leaders and employee groups.

All voters, including independents, can cast ballots on the amendment during the Jan. 29 presidential preference primary.

Six out of every 10 voters who cast ballots must vote "yes" in order for the amendment to pass.

"2008 is going to be good climb also," Bob Memoli, past president of the Realtors group, said about the severe housing market downturn.

"This is a stepping stone," Memoli said about the Amendment No. 1.

The tax amendment proposal includes "portability" of the Save Our Homes property tax cap for people who move within the state. Save Our Homes restricts increases in property tax values to 3 percent a year.

Portability, if the amendment passes, would apply retroactively to residents who moved since Jan. 1, 2007.
Amendment No. 1 would allow homeowners keep up to $500,000 in value capped when selling one primary residence and buying another.

The amendment also doubles the homestead exemption on primary residences, to $50,000 from $25,000. The higher exemption, however, would not apply to school district property tax levies.

For properties that don't qualify for a homestead exemption, the proposal would limit annual increases in property tax value to 10 percent.

Fasano said Friday he has heard "horror stories" about tax assessments on commercial property and houses that are not primary residences doubling within a year in some South Florida counties or cities.

The "doom and gloom" predictions of severe cutbacks in city and county services following the local government property tax rate cuts the Legislature ordered last year never came to pass, Fasano noted.

If approved, Fasano predicted, Amendment No. 1 would have "minimal impact" on local governments' finances.

County officials aren't so sure.

Pasco County Commissioner Jack Mariano said he is remaining neutral on the amendment.

"I'm telling voters to take a look at it," Mariano said in a phone interview today after the rally at the Board of Realtors. He thinks the amendment would be a "short-term solution," thanks to the portability of the Save Our Homes cap.

"Everything is on the table" if the amendment passes, Pasco County Commissioner Jack Mariano said in a phone interview today after the rally at the Board of Realtors.

Nobody quite knows for sure how much money the county might lose if voters approve the amendment, Mariano said.

"We're going to have to look at all options" if Amendment No. 1 is approved, Mariano said.

If the amendment passes and the increase in the assessed value of Pasco County property slows, the County Commission might have to compensate by raising the property tax millage rate. Other options could include reduce services or layoffs of county.

The amendment won't be a cure-all for rising Florida property insurance bills, Mariano believes.

For example, businesses won't see much benefit and renters would still be left in the lurch because landlords might have to pay higher property taxes and pass on the cost in the form of rent increases.

"And you haven't done anything to address the disparity" where one resident with the Save Our Homes cap pays much lower taxes than a neighbor without the cap relief.

Mariano would prefer to have the Legislature reconsider a proposal from House Speaker Marco Rubio of Miami to replace property taxes with a higher sales tax rate.

Pasco Sheriff Bob White, who like Mariano is a Republican, attended the rally to listen to comments.

"I would support it," White said about the amendment in an interview today, "for the health of the state."

The sheriff believes the county then would have to set priorities if tax cutbacks become necessary. He hopes public safety is high on the priority list.

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