PROPERTY TAX PLAN WINS SUPPORT RUBIO SAYS PROPOSAL COULD HAL V... Page 1 of2

PROPERTY TAX PLAN WINS SUPPORT RUBIO SAYS PROPOSAL COULD HALVE HOMEOWNERS' BILLS

[Palm Beach Edition]

South Florida Sun - Sentinel - Fort Lauderdale, Fla.

Document Text

(Copyright 2007 by the Sun-Sentinel)

Informational box at end of text.

Finally, there's some encouraging news for Floridians counting on the Legislature to reduce their property taxes this year.

House Speaker Marco Rubio on Friday endorsed a new plan for relieving the tax burden of owners of homes and businesses - and even snowbirds - by expanding the state's homestead exemption.

Rubio's approval of the proposal, which he said would halve the average homeowner's tax bill, was hailed as a good omen that the deadlock between the House and Senate over taxes may be ending.

The plan is still sorely lacking in details, however, and would need the approval of Florida voters because it requires a change in the state con-stitution.

But Rubio said the new exemptions to home and business property taxes would be fair and simple and eliminate many inequities of the current system.

"It gives you a tremendous amount of flexibility ," the West Miami Republican said during a telephone conference call with reporters. He said the expanded tax exemptions would be based on a percentage of property value.

By embracing the concept already supported by fellow Republicans and some Democrats, Rubio sent the first clear signal that he was backing off his controversial demand to trade increased sales taxes for a deep reduction in property taxes on primary homes.

Despite a 6Q-day session that ended last week, lawmakers failed to agree both on an amount to cut property taxes by, and a method for doing it. Legislators will reconvene June 12 to try again.

Senate Republican Leader Dan Webster, R-WinterGarden, praised Rubio for his new display of flexibility, saying, '" think we are on our way to having a consensus plan."

Rubio said he hadn't abandoned the idea of seeking a higher sales tax in exchange for drastic cuts in taxes on real estate. But he said what was important to him was not the mechanism, but results.

'Our goal has never been a tax swap," Rubio said. "Our goal has been significant savings to the people who need it the most."

Some Democrats in the Legislature, though, remained Skeptical.

"How much does it cost?" said Sen. Steve Geller, the Senate Democratic leader from CooperCity. "It's a partial plan that has no numbers."

The approach Rubio is now advocating was first presented by Rep. David Simmons, R-Maitland, and is similar to a plan authored by Rep. Jack Seiler, D-Wilton Manors, and other House Democrats.

Rubio said legislative staff members would present firmer numbers at meetings on May 21 and June 4. But Rubio and supporters of the concepts he now backs said they want 80 percent of the first $300,000 in fair-market value of a

PROPERTY TAX PLAN WINS SUPPORT RUBIO SAYS PROPOSAL COULD HAL V... Page 2 of2

Floridian's primary residence to become exempt from property taxes.

On the next $700,000 in market value, 70 percent would be exempt. And on all market value above $1 million, 30 percent would be exempt.

The current homestead exemption is $25,000 for year-round Florida residents.Other properties get no tax breaks at all.

Under the plan supported by Rubio, non-homestead residential properties, such as apartment buildings or snowbirds' homes, as well as commercial buildings, would also be tax-exempt on a share of their market value. The speaker said details of those tax cuts still have to be developed.

Rubio said the plan would yield an aggregate statewide reduction of property taxes similar to what a plan from Gov. Charlie Crist envisioned, or almost $35 billion over five years.

Crist aides said Friday he hadn't yet analyzed Rubio's proposal, but the Republican governor said in a radio address that he was "committed" to obtaining tax savings for Floridians, and "optimistic" that it can be done this year.

Linda Kleindienst of the Tallahassee Bureau contributed to this report.

Mark Hollis can be reached at mhollis@sun-sentinel.com or 850- 224-6214.

HOW MUCH YOU COULD SAVE

80 percent of the first $300,000 of a primary home's fair market value would be tax-exempt.

70 percent of the next $700,000 of market value would be exempt.

On homes worth more than $1 million, 30 percent of the remaining market value would be exempt.

Snowbirds and other owners of non-homestead properties, and commercial properties, such as apartment buildings, would qualify for an exemption still to be determined.

In addition, the plan could be coupled with a rollback in local government tax rates or special tax breaks

- SOURCE: SOUTH FLORIDA SUN-SENTINEL

Abstract (Document Summary)

[Charlie Crist] aides said Friday he hadn't yet analyzed [Marco RubioJ's proposal, but the Republican governor said in a radio address that he was "committed" to obtaining tax savings for Floridians, and "optimistic" that it can be done this year.