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Governor Unveils His Plan For Property Tax Relief
By JEROME R. STOCKFISCH and JOSH POLTILOVE
Tampa Tribune
Published: Apr 26, 2007

TALLAHASSEE - A proposal to eliminate local property taxes in exchange for an increase in the state sales tax received another setback Wednesday as Gov. Charlie Crist unveiled his plan for trimming tax bills with no mention of such a swap.

Crist had been watching from the sidelines as the state House, whose Republican leaders were pushing the sales tax strategy, and Senate began negotiations on wildly divergent plans.

The governor's proposal splits the difference in a key provision of the two chambers' plans.

Crist hosted a town hall meeting on the property tax issue Wednesday night in Orlando and was unavailable for comment.

His proposal would save the average Florida taxpayer $340 in 2007, and up to $2,243 in 2011 as various provisions of the plan kicked in.

"I'm encouraged that he's joined the debate," said Rep. Jack Seiler, D-Wilton Manors, one of the House conferees. "He's been a major advocate for tax cuts, and I'm glad he came out with a serious proposal."

House and Senate conferees are negotiating their competing bills as the legislative session winds to a May 4 close. Both contain a provision to roll back local government tax revenues.

The House calls for a steep cut to fiscal 2000-01 levels, which would save taxpayers $5.8 billion in 2007. The Senate trims to a more modest 2005-06 rate for a savings of $1.7 billion. Crist calls for a 2003-04 rate, representing a $4 billion discount.

Echoing his campaign pledge from last year, Crist also proposes doubling the homestead exemption; exempting the first $25,000 of businesses' tangible personal property, such as office equipment; and allowing homeowners to take their "Save Our Homes" valuation benefit with them if they move.

The Senate's plan is similar. Because they fundamentally change Florida's tax structure, some of the moves would require approval of a constitutional amendment by voters. The rollback could be accomplished through legislation.

This week, Senate leaders rejected outright the House plan to ask voters to eliminate state school taxes, local school taxes, then all county and municipal taxes in exchange for a 2 1/2 -cent increase in the state sales tax. Meeting with reporters Tuesday, Crist hinted at what was to come when he said he thought the House plan was "intriguing," but added, "We have to do the doable, though."

Rep. Michael Scionti, D-Tampa, another House conferee, said he, too, was encouraged by the governor's proposal "because it appears to offer immediate, substantial tax relief."

"What he's doing helps current homeowners, those who want to be first-time homeowners and those who want to move. It's comprehensive," Scionti said.

Reporters Jerome R. Stockfisch and Josh Poltilove can be reached at (850) 222-8382, jstockfisch@tampatrib.com or jpoltilove@tampatrib.com.



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