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Opposition is mounting against a plan to lower Florida property
taxes in exchange for higher and more
wide-reaching sales taxes. Critics say the tax swap would
ultimately amount to the largest tax increase
in Florida history.
Constitutional Proposal 2 (CP2) seeks to:
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Cut property tax bills by at least 25%
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Cap assessment growth for non-homestead properties at 5%
(homestead property is capped at 10%)
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Revamp the way the state pays for education
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Order the Legislature to replace lost property tax revenues
with expanded sales taxes
If approved by a 60% margin of
voters in November, the changes will take effect Jan. 1, 2010.
Proposal Shaky from the Start
CP2 received preliminary approval
from the Taxation and Budget Reform Commission in mid-March.
This commission is allowed to make recommendations on new laws
and constitutional changes only once every 20 years.
However, several commissioners
later changed their votes. In late April, the plan got only one
more vote than needed to place it on the ballot.
Actually a Tax Increase?
Business and trade groups say the
numbers don’t add up and rather than a property tax cut, the
proposal actually amounts to a net tax increase. Senate Finance
and Tax Chairman Mike Haridopolos set up a web site (www.protectfloridasfuture.com)
to explain the discrepancies.
Critics are concerned that since
the plan is in the form of a constitutional amendment, it would
be difficult to change if it didn’t work out.
The proposal may face legal
challenges. Barney Bishop, president of Associated Industries of
Florida, which represents most of the state’s large companies,
was quoted as saying he’s 99% certain there will be a lawsuit to
try and block CP2 from the ballot. |
