Media Center - Florida Realtors®

Marla Martin, Communications Manager, or Jeff Zipper, Vice President of Communications 407/438-1400, ext. 2326 or 2314

Florida Realtors® Applaud Legislators’ Action
For Property Tax Reform

ORLANDO, Fla. – July 11, 2007 – The Florida Association of Realtors® (FAR) applauds Florida lawmakers and Gov. Charlie Crist for taking an important first step toward crucial property tax reform in passing legislation during the June special session.

The Florida Legislature passed a two-phased property tax reform package that begins to make fundamental changes to the state’s tax system and affects every property owner in Florida. Under the plan, local governments will be limited in the amount of property tax revenue they can raise and must further cut the coming year’s budget based on their past history of taxation. However, the reform package still allows local governments to exceed those levies by extraordinary votes. The legislation also provides for an overall revenue cap limiting what governments can collect from property taxes, which should protect everyone, including commercial and rental housing, from big property tax increases from year-to-year.

Lawmakers also approved a proposed constitutional amendment to address inequities under the state’s Save Our Homes amendment, which voters will consider when they go to the polls for the state’s presidential preference primary on Jan. 29, 2008. The amendment would allow current homesteaders to choose between continuing their current system or going with a new “super-homestead” exemption that would take up to $195,000 off their home’s taxable value, according to John Sebree, FAR vice president of public policy. For about 73 percent of Floridians, the new super-homestead will offer them a better deal, he says.

“We look at this plan as the starting point for tax reform negotiations – not the finish line,” says FAR President Nancy Riley. “Concerned Floridians have been fighting hard for housing relief for teachers, nurses, police officers and emergency first responders. The new super-homestead exemption would most benefit the people who are the strong foundation of our communities and who, at the very least, should be able to afford to live in the communities we expect them to serve.”

Sebree adds, “FAR supports this proposed amendment because it will address the lock-in effect of Save Our Homes and offer first-time homebuyers a large exemption, promoting homeownership. If passed, it will begin to reverse the harmful, unfair effects of SOH, where next-door neighbors pay drastically different property taxes simply based on when they bought their homes.”

The amendment helps small businesses by exempting $25,000 in tangible personal property taxes. It also gives the Legislature the authority to address assessment issues realized during the recent real estate boom on the state’s working waterfront areas and affordable housing needs.

“Realtors will be fighting hard for the passage of the constitutional amendment to insure Florida's economy stays strong,” Riley says. “Real estate sales are the fuel to recharge our state and decreased taxes are the spark needed to keep the economic fires burning bright.

The Florida Association of Realtors (FAR), the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its 150,000 members in 68 boards/associations.