Tax reform bill shaves 7 percent off Santa Rosa property tax

Tax reform bill shaves 7 percent off Santa Rosa property tax revenues

by Deborah Nelson
June 15, 2007

State tax reform, passed Thursday evening, requires Santa Rosa County to reduce tax revenues by seven percent next year, but Property Appraiser Greg Brown says it’s too soon to tell how the changes might impact homeowners’ pocketbooks.

Local governments must roll back property taxes and cap future hikes, according to Thursday’s bill, passed in a special Florida Legislative session. The measure would apply to cities, counties and special taxing districts.

A separate measure to replace Save Our Homes property tax protection with a “super homestead exemption” must be voted in, January 29, as a Constitutional Amendment.

Governor Charlie Crist is expected to sign Thursday’s bill into law in coming days.

That bill’s rollback freezes 2006 tax levels as a baseline, then requires another 3, 5, 7 or 9 percent cut, depending on increases since 2001.

In Santa Rosa’s case, the County would have to shave 7 percent off last year’s revenues.
Santa Rosa per capita levies rose from $266 (in 2001) to $420 (in 2006), per Legislative documents.

Those numbers, which have not been verified locally, work out to a 9.6 percent increase -- half-a-percent lower than the statewide average, according to State numbers.

Escambia County would also cut 7 percent next year. Escambia property taxes increased from $269 to $445 per capita, from 2001 to 2006. That’s up 10.6 percent, or .43 percent above the State average, according to House numbers.

The Santa Rosa County rollback would be accomplished by lowering the present millage rate of 6.6175.

Brown’s staff are analyzing exactly where the new millage will fall and how the Amendment, if it passes, might impact residents’ savings, he says.

“I just want to make sure citizens fully understand the ramifications of what happened in Tallahassee,” he notes. “This means money to them, whatever way they go.”

Thursday’s bill would require the City of Milton to cut revenues by 5 percent; Gulf Breeze by 3 percent; and Jay by 3 percent, according to Legislative figures.

The measure ties tax caps with local income and construction growth, but details are unclear on how those factors would impact allowable revenue levels.

Brown says he expects State clarification by July 2.

Local governments may exceed caps by supermajority vote, or through public referendum.

Legislators estimate the bill will save average homeowners $174, statewide, next year. Businesses would save about $1000.

If January’s Amendment also passes, residents must choose between keeping Save Our Homes protection, or signing it away, permanently.

Save Our Homes prevents homestead property assessments from increasing more than 3 percent each year.

Brown says he’s working on a formula to help homeowners predict which option, in the long run, would be the best option for individual cases.

“This is going to be extremely complicated for citizens to make a decision,” he notes. “I want to make sure they’re the best informed I can make them.”

Save Our Homes has been criticized for creating inequities between what longtime owners and new residents pay.

The replacement ‘super exemption’ would apply equally to every homesteaded taxpayer.

It calculates to 75 percent of a home’s first $200,000 in value and 15 percent of the value between $200,000 and $500,000.

Unlike Save Our Homes, the new “super exemption’ would not limit how much home assessment values could increase from year to year.

However, Thursday’s statutory cap would theoretically require local governments to reduce millage rates each year to curb assessment-induced tax hikes.

Thursday’s bill does not impact schools revenue, but the January Amendment could reduce school funding by $7.1 billion over five years, according to opponents in the Legislature.

Information detailing Save Our Homes and ‘super exemption’ tax savings will be included in next year’s taxing TRIM notices, if the Amendment passes.

Brown says more information will be available at the Property Appraiser’s website: http://www.srcpa.org/ as it becomes available.