On Thursday, Gov. Charlie Christ signed part 1 of a 2-part tax plan into law, promising "meaningful" discounts on resident's tax bills without having to give up any of the government services they rely on.
The bill, which will provide an initial savings of about $174, requires cities, counties and special districts to freeze, cap and cut all property tax collections for 2007.
Another bill will allow voters to decide whether to approve the second phase of the tax plan on January 29th. Phase two is expected to provide significant increases in Homestead exemptions for anyone who agrees to give up the "Save Our Homes" tax cap. Christ promises the move will "Ignite the real estate market in the state."
Local governments unhappy with the new law are threatening to close libraries, suspend mosquito control and slash budgets for local parks, as well as voting to ignore the tax cap. Local governments who decide to ignore the cap risk losing revenue sharing dollars.
Christ, who held signings in several Florida cities, said he is expected local governments would attempt to "knock it down" by threatening layoffs of firefighters, police and teachers. Crist is sure that a responsible official in a local government won't have to do that. An example would be made if they acted on their irresponsible threats.
Opponents to the bill argue that it "presumes that officials in Tallahassee are better equipped at making local decisions" than local officials and expressed worry that the bill would squeeze many services.
Even though there is much opposition, some are welcoming the new law as a way of correcting the massive property value increases in recent years. House Democratic Leader Dan Gelber of Miami Beach said that this really is an opportunity to re-boot your tax base. He opposes phase two, which he believes will hurt education funding. He agrees with Crist that education funding shouldn't be cut.
Contributed by Miami Luxury Villas
