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After months of deliberations, the Florida Legislature
passed a proposed constitutional amendment that could cut more
than $12 billion in property taxes over a five-year period.
The measure, which will go before voters on
January 29 would:
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Cap annual increases in commercial property
assessments at 10%
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Give businesses a tangible personal property
exemption covering the first $25,000
in value for computers
and machinery
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Cap homestead assessments at 3%
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Let homeowners transfer up to $500,000 of
accumulated tax benefits to a new homestead.
Many commercial and industrial property owners
believe the 10% cap is too high to bring them needed tax relief.
A poll by the Florida Chamber of Commerce found 85% of its
members are faced with property taxes that are growing faster
than their revenues. The commercial assessment cap would not
apply to school taxes, which are 40% of a typical business
property tax bill. Also, the cap would terminate after 10 years.
There are additional concerns that the cap will
create inequities in the commercial tax rolls. In a major
Florida city, downtown buildings range in value from $67 per
square foot to $135 per square foot and they all compete for the
same tenant base. Once capped, the low value will never be
equalized to the higher value and will have an unfair
competitive advantage against the higher-valued building because
taxes are passed through to tenants.
Business lobbyists are gearing up to push for
more substantial tax relief when the legislature reconvenes next
March. The biggest push in the 2008 session will be to flip the
presumption of correctness to the tax payer and make the
property appraiser have the burden of proof in assessment
appeals.
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