Posted on 02/21/2007 11:09:58 AM PST by Extremely Extreme Extremist
(CBS4) TALLAHASSEE -- Lawmakers in the state house of representatives are ready to stop charging many Floridians property taxes -- by making the state's sales tax the highest in the nation.
House Republican leaders just unveiled a package of proposals to halt runaway government spending and to eliminate homeowners' property-tax bills by raising the six-cent state sales tax by 2.2 cents.
Under the plans, homeowners would no longer pay any property taxes whatsoever. Owners of commercial properties and nonhomesteaded homes would continue paying all local-government property taxes, which would be adjusted for inflation after being scaled back to 2001 levels -- before the real-estate market boomed and local government spending skyrocketed.
Total loss to local governments/gain for property tax payers: $5.77 billion.
The proposal would shift even more of the sales-tax burden to businesses. Businesses, which pay about 40 percent of sales taxes now, could see shoppers cut down on spending or head to other states or the Internet. The poor would see a disproportionately higher amount of their wages pay for government.
And it could lead to higher federal income tax payments, because people would lose the property-tax deduction that they now receive. Though state sales taxes are currently deductible, that deduction will end after next year.
In Miami-Dade, County Manager George Burgess was skeptical. ''It would certainly have an impact, and I doubt very much that it would be positive,'' he said. Legislators want to give local governments the option to battle tough financial times by asking voters to approve higher taxes on commercial and nonresidential properties than allowed by the cap.
The idea has been greeted with mixed reviews from cities and counties and with downright skepticism from the Florida Senate, which has yet to unveil its plan for property-tax reform.
Gov. Charlie Crist, who has proposed his own property tax reform plan that did not include raising sales taxes, said he was keeping an open mind. ''The important thing is that we reduce taxes,'' he said. ''I don't want to prejudge any'' proposals.
A better idea is to implement a land-value tax. A land-value tax only taxes the parcel of land - not the property that's on it. It's much more efficient and it promotes more efficient use of land.
I agree with eliminating government rent. If government rent is in place, there is no ownership of property.
property taxes are local, the state wants to assume the cost. this is little more that a power grab by the state at the expense of local control.
with more control going to the state, the individual voice is diluted, and the government grows by inertia.
And property tax usually has no relation or an inverse relation to the value of services used by those who own the property.
A retired couple with no kids in a $500,000 house are going to use a lot fewer tax dollars than a young couple in a $200,000 house with 3 kids in public schools.
Does the author mean percent? I can't imagine buying a $20,000 car and paying only 6 cents in a sales tax.
interesting
You should be able to buy a piece of land and just sit there and not owe anyone any money if you so choose. Having to pay yearly taxes on every piece of land takes that choice away. No thanks. I'll take land ownership over paying rent to the slumlord government.
I've thought about what you and others have stated for a long time now. It seems to me that public schools and the education of children benefits us all, not just those who send their kids there. At least it should, and we know in many cases the school itself is the reason for delinquent children, but there you have it.
i would think it is 2.2 cents per dollar spent. might be wrong though...
There goes that trip to Disney.
they government will only get more money out of a different pocket. AND they will retain and tighten control over your property.
your ability to resist will be lessened because this will now be a state issue, not local. soon it will be federal.
you're losing sight of trhe forest because of all the trees.
the real problem is government SPENDING, government CONTROL, and the ability of a citizen to be heard.
The reason this is hitting the fan now is homeowner's insurance is skyrocketing here. And I'm talking about increases of 400% or more in just a few years.
It's destroying the real estate market. People are fleeing my county (Pasco) because they can't afford the HO.
Like my liberal sis said, "It doesn't matter that your property taxes are low. The insurance is working like another tax".
The private insurers pulled out, leaving only the government plan (Citizen's) writing. And if you think the government screws other things up, watch them run an insurance company.
And yes, I know, everyone will pop out of the woodwork saying, "But you have so many hurricanes!" Well hurricanes haven't hit my area in years. Besides, we have monster hurricane deductables here. I'd probably have to lose $5K before I saw one cent.
And it's not just happening here. It's coming to other places soon too. Look at CA with it's earthquakes. NY with its ice storms. The midwest with its floods. This is a trend.
The problem here is that real estate is taxed at the full market value. There is a "homestead exemption" system for owners of their primary residence. New owners, 2d home owners and commercial property owners face the possibility of drastic rises in their property tax. Property tax could double in a year if the full market value of the property doubles.
The state is facing a crisis because property taxes and insurance costs are driving businesses out of Florida.
By your logic you should help me pay for my medical degree, or my cousin's PhD, since the education of citizens will clearly benefit the greater society... In a free market, let the people who want the service pay the cost, that keeps it to a minimum. I guarantee that if the parents had to foot the bill for their children's education they would manage to do without the new sports complex, the new computers every two years, the six-figure administrative staff, diversity training, etc.
Per dollar.
The state tax rate is 6.6 cents. But some idiots down here voted in "Penny for Pasco" and "Penny for Pinellas" which is another cent, so we have a seven cent tax. Add 2.2 cents to that and I guess it's a rate of 9.2 cents. Now there is no state income tax here but the homeowners ins is much more than taxes. So this does not seem a good idea to me.
They mean "cents on the dollar" and it's a common way to say it, but of course, that means "percent."
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