TALLAHASSEE, Fla. (AP) -- A second major property tax-cutting proposal advanced Thursday in a commission that proposes state constitutional amendments, but only one is likely to go on the November ballot.
The new plan being considered by the Taxation and Budget Reform Commission would cut taxes about 12 percent a year when fully implemented. It would provide a 25 percent "super exemption" for all residential properties including second homes and rentals. They'd get only get half - 12.5 percent - in the first year.
For the first three years, the amendment would impose a 0.5 percentage point increase in sales tax to temporarily replace some of the money - about $4 billion to $5 billion a year - that school districts and local governments would lose.
A commission committee sent the proposal to the full panel for a vote. Another approach that would cut taxes 25 percent was previously cleared for commission action after getting committee approval.
"I think it would be wise to have the full commission have both of these tools available so they can make the ultimate choice when they're fully vetted," said Commissioner Carlos Lacasa, a former state representative from Miami, who is sponsoring the super exemption plan.
The competing plan would repeal that portion of property taxes the Legislature requires school districts to levy in return for getting state aid. The Legislature would have several options for replacing the $8 billion annual revenue loss, including a 1 percentage point increase in the sales tax and repeal of certain sales tax exemptions.
Both versions also would cap annual assessment increases on all property, except primary homes, at 5 percent. That would replace a 10 percent cap in Amendment 1, which voters approved Jan. 29. Primary homes, or homesteads, already have a 3 percent Save Our Homes limit.
The commission has not yet set a date for voting on the property tax proposals but has a May 8 deadline.
Lacasa's plan received unanimous approval from the Governmental Procedures and Structure Committee, two days after Gov. Charlie Crist said in his State of the State address that he is looking to the commission for more property tax relief.
Some committee members prefer the school tax cut but voted for Lacasa's proposal so all commissioners can take part in the final decision.
The super exemption applies only to homesteads valued at more than $50,000. Homesteaders also would continue to get an existing $25,000 exemption but would lose their Save Our Homes benefits unless they are a better deal than the super exemption.
The measure would repeal a second $25,000 homestead exemption that's part of Amendment 1 and applies only to non-school taxes.
Another commission committee narrowly voted 6-4 to send the full panel a proposed amendment that would cap state and local revenues - taxes, fees and other income sources - after making some changes. The caps would let revenues increase to match inflation and population or school enrollment growth plus 1 percent.
The Planning and Budgetary Process Committee, though, removed a provision that also would have limited spending and added one that would require voter approval of new taxes or fees. Another change would let local government bodies exceed the caps for up to 10 years with a three-fourths vote. The Legislature could do the same with a three-fourths vote in the House and Senate.
The same committee also sent the full commission two measures that would affect schools. One would water down class-size reduction requirements and the other would lift a ban on state aid to parochial schools and other religious organizations in return for providing public services.
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