Policy Research

Amendment Five Property Tax Reform proposal on this November's Ballot

The Florida Budget and Taxation Reform Commission placed several constitutional amendment proposals on the November 2008 Ballot. The most prominent and controversial is Amendment Five, identified as the Property Tax Swap.

If approved by the voters this November, this will mandate the elimination of Required Local Effort (RLE) property tax in 2010-2011 and gives the Florida legislature the flexibility to replace the revenue from other sources. The Required Local Effort is the public school portion of your property tax bill that the state of Florida requires each school district to levy. This Amendment will provide;

• Average property tax cut of approximately 25%, and
• A 5 percent assessment cap for non-homesteaded properties Replacing RLE will cost at least $9 billion and requires the Florida Legislature to find other sources to replace the revenue, including;
  
• Sales tax increase of up to 1 percent (one penny), which will only raise $3.9 Billion. Other options are to;
  
• Repeal current sales tax exemptions and possibly a services tax
• Other spending reductions

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HOW A MINOR STORM COULD BANKRUPT FLORIDA!

Here's one scary Halloween scenario that could easily come true; by trick or treat time, just past the hurricane seasons peak, Floridas state government easily could be bankrupt-- and it's tax payers realing from enormous new costs-- unless the legislature abruptly changes course.

Read more about Floridas growing insurance problems by going to these links:

http://www.jamesmadison.org/pdf/materials/637.pdf

http://www.jamesmadison.org/pdf/materials/625.pdf

http://www.jamesmadison.org/pdf/materials/626.pdf

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