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1.35% Property Tax Cap Frequently Asked Question
Impact on Local Government and School Budgets
My Taxes
Will the 1.35% property tax cap plan cut my taxes?
Yes! You will pay no more than 1.35% of your property’s taxable value (see below) in taxes. For instance, if the “taxable” value on your TRIM notice is $100,000, the most you will pay is $1,350 in taxes. On average, property owners will get a 26% property tax cut.
But I could sell my house now for $300,000, if I am taxed on that, won’t my taxes go up?
The 1.35% tax cap would NOT apply to what you can sell your house for (its “just” or “market value”). It would apply to the “taxable” value which is usually much lower for homestead property owners. So the taxes would go down compared to current taxes.
So what happens if my “taxable value” is $200,000 but my “just” or “market value” is $300,000?
You would be taxed at the “taxable value” and your taxes would be $2,700. On average, such a house is currently taxed about $3,700 or more in property taxes. So the 1.35% property tax cap would save such a homeowner $1,000 a year in property taxes.
I have a business that is classified as “non-homestead” property and I have no Save Our Homes protection. Will I see a tax cut?
Yes. The 1.35% tax cap applies to all property owners, whether classified as “homestead” or not. So if your business property has a taxable value of $500,000 your taxes would be no more than $6,750.00.
So the 1.35% property tax cap applies to “homesteaders” AND “non-homesteaders”?
Yes! Each group will see a major cut in their taxes.
I don’t live in Florida and am a “snowbird”. I am not sure I can come to Florida anymore if my taxes aren’t cut. Will your plan help me?
Yes! As a “non-homestead” property owner, you will see a major property tax cut and pay no more than 1.35% of your property’s taxable value in taxes.
Impact on Florida Economy
Will your plan help Florida’s real estate market that is spiraling downward every month?
Yes! When property taxes are cut, people will buy houses and invest in commercial real estate. This will spur our slumping economy as more and more people buy and sell real estate.
Will your plan help the overall Florida economy?
Yes! This year, state government had a $ 1.5 billion revenue shortfall because the economy has been damaged by high property taxes. Cutting property taxes will create the necessary shot in the arm the economy needs. Right now, people aren’t buying houses and all the furniture and other items that go with such a purchase. The effect is rippling through the economy as movers, manufacturers, stores and the rest are impacted by low property sales. In addition, high taxes mean less money in people’s pocket, so the economy is suffering.
Impact on Local Government and School Budgets.
Our local government and school budgets have doubled since 2000. Will the 1.35% plan cut government back to size?
Yes! Property tax revenues will decrease on average 26% across the state. In 2006 local governments and school budgets collected $30.4 billion in taxes. This proposal would cut their collections back to $22.4 Billion.
Wait a minute, how will our governments run with less money? Won’t government services be cut to the bone?
State and local government can get by with smaller budgets. In fact, they operated just fine with half the money just seven years ago. Their budgets have more than doubled at a time when Florida incomes have gone up only a bout 40%!
Doesn’t your plan hurt schools?
No. Our plan allows for the state government in Tallahassee to decide what percentage of property taxes go to the schools. They may decide that the schools should get 55% of property tax revenues, compared to the current 40% they receive. A 55% apportionment will give them the same amount they collected in 2006: $12.3 billion.
Also, school budgets have increased only 70% since 2000, while counties, cities and special districts have gone up 80-110%. So the impact of our 1.35% cap will be less on the schools.
Under our plan Tallahassee can make sure the schools get what they deserve by:
Why not just make the local elected officials cut their budgets and if they don’t, replace them?
Dozens of grassroots tax reform groups around the state have tried for over a year to appeal to Democrat and Republican council members, board members and commissioners to cut their budgets. Most refused. In fact most have fought all cuts every step of the way by buying political ads with our tax dollars and hiring lobbyists (with our tax dollars) to fight tax cuts in Tallahassee. Since they have demonstrated they can’t act responsibly, we think it is time to impose limits on their power to tax hard working Floridians.
Can Tallahassee replace “lost” revenue with other taxes if it is needed?
Yes. It is up to the policy makers in Tallahassee to address the need for new revenue. Our plan simply cuts property taxes for all property owners in Florida.