Unraveling the Legislatures Tax Scam

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Unraveling the Legislatures Tax Scam
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Unraveling the Legislatures Tax Scam

• Why is there a crisis in Florida relating to
  property taxes?
• What does Amendment 1 actually do?
• Why is it critical to defeat Amendment 1 on
  January 29th?

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Floridas Property Tax Crisis

• Its all about the state budget and tax code!
• Former Governor Jeb Bush pushed over 14 Billion
  in tax cuts during his administration. Tax cuts
  were aimed at corporate sectors and Floridas
  wealthiest residents. Tax cuts and loopholes for
  corporations now cost Florida 5 to 6 billion
  annually.
• The total loss in state taxes for the next five
  years is estimated at 28.5 billion.
• Tax cuts are paid for by shifting financial
  burden to the cities and counties for education,
  public health care programs and judicial system.
• Source Florida Center for Fiscal and Economic
  Policy

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Floridas Property Tax Crisis

• Its all about the state budget and tax code!
• Florida currently ranks 8th in the country for
  the state share of taxes for services meaning
  only 7 states in the nation expect their local
  governments to do as much as ours.
• Increased costs force counties to maximize
  property tax collections the only
  constitutionally guaranteed source for local tax
  dollars.
• The Florida Legislature made the problem by
  creating the 3rd most regressive tax state in the
  nation
• They now wants to blame local governments!
• Sources U.S. Census, Congressional Quarterly

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Floridas Property Tax Crisis

• FIX THE STATE BUDGET FIX THE TAX CRISIS
• Florida currently ranks 34th in the nation for
  total tax revenue per capita but is home to the
  4th wealthiest population in the country
• We currently rank 43rd in the nation for per
  capita expenditures (up from 50th in 2006).
• Florida is 48th in the nation per capita for the
  amount of federal dollars we draw down under
  matching programs because we do not adequately
  fund essential services.
• Florida has consistently received the lowest
  rating by Congressional Quarterly and Governing
  Magazine in terms of revenue adequacy for
  programs and fairness to taxpayers.
• Sources U.S. Census, Congressional Quarterly,
  St. Pete Times

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What is Amendment 1

• Increases current homestead exemption from
  25,000 to 50,000
• Creates Save our Homes portability allowing
  homeowners to transfer accrued SOH benefits to a
  new home
• Creates a new SOH-Like 10 assessment cap on
  non-homestead properties (investment properties,
  businesses, vacation homes).
• Provides Tangible Personal Property Tax (TPP)
  Exemption of 25,000 on property held by certain
  businesses

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What is Amendment 1

• 50,000 Homestead Exemption 5 year cost 4.7
  Billion
• Save our Homes Portability 5 year cost 5.62
  Billion (estimated - could be much more)
• New non-homestead cap on assessments of 10 - 5
  year cost 1.12 Billion
• Tangible Personal Property Tax (TPP) 5 year
  cost 922 Million
• Total Impact to local governments - 12.38
  Billion in the first 5 years EXPECTED TO
  INCREASE AFTER 2012!
• Source Florida Senate

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What is Amendment 1

• Negative School Impacts
• Save our Homes Portability 5 year cost to
  schools 2.36 Billion (estimated cost could be
  more)
• TPP Exemption 5 year cost to schools 397
  Million
• Total school impact over first 5 years
• 2.757 Billion

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What is Amendment 1

• IMPACT ON MIAMI-DADE
• Miami-Dade County Impact - 168.9 million in
  2008, 549.4 million by 2012
• Miami-Dade Schools Impact - 44.5 million in
  2008, 238.2 million by 2012

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NO ON AMENDMENT 1

• Decimates local budgets for schools, public
  safety (fire, police), health care programs,
  parks and rec., libraries, senior centers, victim
  advocacy programs..
• Provides only 20 per month in tax savings for
  average family
• Forces cities and counties to increase fees for
  services, costing families much more than 20 a
  month

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NO ON AMENDMENT 1

• Kicks Floridians when theyre down Florida
  currently at the bottom in all major indicators
  for social services
• 48th in total education spending per capita
  income.
• 50th in the nation for higher education
  spending.
• 42nd in the nation for high school diplomas.
• 41st in the nation for general health care
  delivery.
• 47th in the nation in terms of people without
  access to primary health care.
• 44th in the nation in terms of providing health
  care for children.
• AMENDMENT 1 KEEPS US AT THE BOTTOM FOREVER!

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NO ON AMENDMENT 1

• Does nothing to address the real causes for the
  property tax problem the overall budget and
  taxation system.
• Amendment 1 will lead to thousands of public
  sector job losses 80 of Labors strength in
  Florida.
• Defeating the measure forces the Legislature to
  provide fair and comprehensive tax reform.

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BIG LOSSES LITTLE SAVINGS
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Broad Opposition to Amendment

• Florida AFL-CIO and affiliated unions
• Professional Firefighters of Florida
• SEIU
• Teamsters
• Florida Police Chiefs Association
• Florida Tax Watch
• Florida Association of Counties
• Florida League of Cities
• Florida PTA
• Florida League of Women Voters
• Human Services Coalition of Miami-Dade
• Florida ACORN
• (Just to name a few)

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What the press is saying

• Defeat of the amendment would be good for
  Florida, because it would increase the chances
  for real tax reform. There are many reasons to
  dislike the amendment. Chief among them is that
  the proposal would help most those taxpayers who
  need help the least, and would cost Florida's
  public school system about 3 billion over five
  years.- Palm Beach Post editorial
• If you thought the cuts in services and
  programs during the last budget process, brought
  on by previous action by the Legislature and
  Crist, were bad, it's going to get even uglier.
  Our parks system will stagnate. Needed
  infrastructure improvements won't happen. Social
  services will suffer. Our schools won't be
  adequately funded. Police and fire protection
  will be reduced. Crist doesn't get that. Either
  that or he doesn't care.
• - Florida Times-Union columnist Ron Littlepage
• Unlike a suppository, this medicine will swell
  up, not dissolve. Voters should not bend over and
  accept it. They should stand tall and demand
  reforms that help the taxpayers most in need of
  help.
• - Tampa Tribune editorial

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What the press is saying

• A panicked, desperate Florida Legislature
  squandered a golden opportunity to lead the way
  toward meaningful tax reform and significant
  relief for taxpayers who need it most. The
  constitutional amendment it placed on the January
  ballot costs too much for too little gain and
  creates more inequities in a property tax system
  that already is grossly unfair. It lacks vision
  and focus, and Floridians deserve better. - St.
  Petersburg Times editorial
• If voters pass the property tax referendum in
  January, local governments will face more cuts.
  The sloppy way this sausage is being made
  inspires no confidence. We're left with an unfair
  property tax system and the unintended
  consequences of changes made secretly and in a
  rush. Florida Times-Union
• Everyone agrees Florida's tax policies are
  antiquated and need a major overhaul. The best
  way to do that was for the Legislature to take a
  top-to-bottom look at inequities in the system
  and put in place well-thought-out solutions.
  Instead, everyone got a chaotic special session
  marked by backroom meetings, secret deals and an
  alpha-dog showdown between the Senate and House.
  - Florida Today editorial

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Additional Resources

• Florida AFL-CIO www.flaflcio.org
• Florida Center for Fiscal and Economic Policy
  (FCFEP)
• www.fcfep.org
• Tax Watch
• www.floridataxwatch.org
• Florida Association of Counties
• www.fl-counties.com
• Florida Education Association
• www.feaweb.org
• Rich Templin
• rtemplin_at_flaflcio.org