As most of you should know by now, Amendment 1, which deals with property tax exemptions and limitations on property tax assessments, passed with 64.4% of the vote yesterday in the State of Florida. Following is an email that was sent out to Wakulla County Commissioners today by Wakulla County Administrator Ben Pingree re: what this means for Wakulla County and how we will proceed to handle this outcome.
Commissioners,
As you will see below, and have likely heard independently by now, the voters of Florida passed the Property Tax Reform “constitutional amendment” measure yesterday. This will have approximately a $1.5M negative fiscal impact on our county’s revenue generating ability in the upcoming fiscal year and future years. While this certainly solidifies a recurring challenge to the county’s annual budget balancing process, I am writing to remind you that the Board has already proactively addressed this issue in preparation for such an event. As summarized below, you have already given staff a blueprint to follow during the upcoming budget development process should this measure have passed. Now that it has, we will engage in that process you have approved beginning with your December 2007 budget workshop, and as follows:
#1) Fight for the “hold harmless” appropriation that was promised by the state legislature as part of this property tax reform package. As you recall, the legislature promised to hold any “fiscally constrained” small county, such as Wakulla County, harmless by guaranteeing an annual appropriation to offset any revenue reduction caused by the constitutional amendment. Now that it has passed, and with the solid estimate of $1.5M dollars, we are working immediately to hold the legislature to their word. Staff is drafting a letter today that will remind them of their written promise and with your assistance and that of our contract state lobbyists (Mr. Johnston and Mr. Bruce), we will fight throughout the upcoming session to gain this baseline amount of funding. This is a critical issue for us and will become by necessity our #1 funding priority issue for the upcoming session.
#2) Craft a FY 08/09 tentative budget in accordance with Board direction. That is a “no new programs, no new positions” (for all functions supported by property tax revenues) budget at the roll back rate (essentially a millage rate that generates the same amount of revenue as was generated this FY 07/08) PLUS CPI (3% MOL) MINUS whatever the equivalent millage rate is to generate any revenues generated from the state legislature in #1, above. Per Board direction, this budget plan is to also include a modest cost of living adjustment, to be determined based on future estimates, for all county employees.
#3) Perform a Cost Allocation Study that can spread costs for property tax supported programs out over other revenue sources, thus reducing the county’s reliance on property tax revenues. Tim Barden and OMB are taking lead on this very issue this month and with the reform measure’s passage, it has new urgency. I’ll give you an example of how this works. My salary (as one FTE employee) is presently budgeted and paid 100% from property tax revenues. However, my work product and focus is spread over programs that are funded from a wide variety of revenues, user fees, etc. The cost allocation study will look at every such employee to see, for example, should the administrator only charge 50% of his/her salary to the general fund (property tax revenue based) and 25% to a sewer fund, 10% to a road paving fund, etc. This study will be based on the actual work that is performed by all of your employees and should result in some cost sharing that will greatly enable the county to weather the challenges posed by the property tax reform measure.
There certainly are challenges and tough decisions that stand yet to be made by the Board in the year ahead. From this first new day of passed (additional) property tax reform, I wanted to thank the Board for the work they have already done in preparation for this tax reform measure. I think that their combined leadership has given staff a good set of tools and direction in how to proceed with the budget development process. Of course, I will continue (along with all county staff) to keep you well informed as this process continues to take shape. Additionally, we will do our level best to craft a tentative budget, with further Board input, that keeps the will of the voters to gain further tax relief in mind while also mitigating the potential negative impact on the county’s ability to fund the excellent local services our citizens have come to expect and deserve.
Thanks,
Benjamin H. Pingree
County Administrator
Wakulla County Board of County Commissioners
(850)926-0910
Following are links to news clips gathered by Mr. Pingree re: the vote on Amendment 1
TALLAHASSEE - A ballot proposal that would
cut property taxes an average of $240 a year for primary homeowners passed
Tuesday, easily getting the 60 percent vote it needed. With 71 percent of the
expected vote counted, the proposed state constitutional amendment had 2,169,402
yes votes, or 64 percent, and 1,203,329 no votes, or 36 percent. Amendment 1 is
unlikely to be the last word on property tax relief in Florida,
however.
Facing a slowing
economy and years of rising property-tax values, Florida
voters overwhelmingly approved a property-tax amendment.
Florida voters gave themselves a tax cut
Tuesday, deciding that about $240 in property-tax relief is better than none in
a campaign season cloaked in economic woe. Voters approved Amendment 1 by a
64-to-36 margin, with the most expensive real-estate region in the state, South Florida, giving it resounding approval.
It is a major victory for Gov. Charlie Crist, who pushed the issue, raised $4.4
million to finance a statewide campaign, and became the face in a blitz of TV
ads.
A budget proposal
for tough times is the next challenge for the riding-high governor.
TALLAHASSEE - The biggest winner Tuesday
night may have been Gov. Charlie Crist, who made two risky bets that both paid
off. Crist's beloved Amendment 1 tax reform package passed easily, and
the candidate he recently endorsed in Florida's
Republican presidential primary, John McCain, beat back all challengers.
The question is: How long will he be able to savor the victories?
It's the tax cut no one seemed to love but, in the
end, was too hard to pass up. Florida
voters Tuesday overwhelmingly approved Amendment 1, giving themselves modest
property tax relief and Gov. Charlie Crist a profound victory. The
Republican governor overcame relentless criticism from unions and others
fearing cuts to local government and schools. Poll after poll showed the
measure falling just short of the 60 percent needed for passage. Newspapers
across the state editorialized against it.
Show us the
money: Voters say even small tax break is better than nothing
TALLAHASSEE - More concerned about saving
money than losing government services, Florida
voters on Tuesday gave resounding approval to an overhaul of the state's
property tax laws that will save the average homeowner $240 a year but could
lead to fewer police and firefighters on the streets. The "yes" vote
after a brief but intense campaign was a major political triumph for Gov.
Charlie Crist, who became the chief cheerleader for the constitutional change.
TALLAHASSEE - Florida
voters on Tuesday gave their resounding approval to a constitutional amendment
that overhauls the state's property tax laws and saves the average homeowner
$240 a year. The lopsided "yes" vote was a triumph for Gov. Charlie
Crist, who became chief cheerleader for the plan after it was put on the ballot
by the state Legislature. It was also a clear sign that voters were more
concerned about cutting their taxes, or being able to move and retain their tax
advantages as Florida residents,
than any loss in government services that might result.
TALLAHASSEE, Florida (Reuters) - Florida
voters on Tuesday approved a property tax reform plan that may cut local taxes
by $9.3 billion over the next five years, a proposal heavily promoted by
Republican Gov. Charlie Crist. With 76 percent of the precincts counted, the
state constitutional amendment to increase exemptions on primary residences and
expand a popular tax cap had 64 percent approval, according to the Florida
Division of Elections, surpassing the 60 percent threshold needed.
TALLAHASSEE - Florida
voters irritated over their escalating property taxes overwhelmingly passed a
constitutional amendment that will give homeowners back an average of $240.
This likely wasn't the final word on tax cuts this year, and many predicted the
resounding win could whet the appetites for bigger tax cuts in the
Republican-controlled Legislature. Voters on Tuesday shrugged off warnings of
dire cutbacks to public safety and school budgets to pass Amendment 1.
ST. PETERSBURG - Amendment 1 passed easily
Tuesday night, riding comfortably on the coattails of its No. 1 supporter, Gov.
Charlie Crist, and defying pollsters. "The people of Florida have spoken and they have demanded
relief, tax relief," Lt. Gov. Jeff Kottkamp told a cheering crowd of about
50 supporters as the results came in. "This is a great day for Florida."
NY TIMES REGIONAL
(Gainesville
Sun, Lakeland
Ledger, Ocala
Star Banner, Sarasota Herald
Tribune)
Tuesday's approval of Amendment 1 means almost all
Floridians will get some relief when they open their property tax bills in
November, though state and local governments will likely chip away at some of
the savings. Don't Bank That Florida 'Tax Cut' Just Yet Voters approved
Amendment 1 by 64 percent to 36 percent with 99 percent of the ballots counted
Tuesday evening. The part of the amendment that could have the biggest impact
is portability, which allows residents to keep their accrued tax savings when
they move within the state.
But local
officials expect the worst for their budgets
Florida voters decided Tuesday that
property owners should get a tax break. So now, local government and school
officials are starting to figure out how to deal with the loss of anticipated
revenue. With 93 percent of the precincts counted Tuesday night, about 64
percent of voters had approved a property tax amendment, according to The
Associated Press. The measure included the doubling of the homestead exemption
and a 10 percent assessment cap on non-homesteaded property.
Florida voters gave Florida taxpayers a break
Tuesday, passing with surprising ease a controversial amendment to the state's
constitution expected to save taxpayers as much as $9.3 billion over five
years. Supporters of the measure, called "Amendment 1," touted it as
a boon for the state's troubled real estate market and tax-weary home and
business owners.
Gov. Charlie
Crist's Tireless Campaigning May Have Helped Get Vote
TALLAHASSEE, Fla. -- Florida Gov. Charlie Crist's
tireless campaigning for Amendment 1 may have helped get the ballot proposal
the 60 percent vote it needed. "The citizens of Florida
have spoken and today received the tax cut they deserved," Crist said.
"Amendment 1 keeps the American Dream of home ownership alive." With
93 percent of the expected vote counted, the proposed state constitutional
amendment had 2,545,457 yes votes, or 64 percent, and 1,419,876 no votes, or 36
percent.
Although Gov. Charlie Crist has promised that the
successful property tax amendment Tuesday is just the first step, don't count
on another property tax cut from the legislature this year. Because that
constitutional amendment is projected to cut $9.2 billion in property taxes
during the next five years, Senate Minority Leader Steven Geller said he
doesn't expect the state Senate to cut property taxes any further in 2008.
Geller, D-Hallandale Beach,
pointed to the hits that local governments have been forced to take through a
five-year, $15 billion property tax rollback mandate that the legislature
passed last summer.
Floridians gave themselves a property tax break
Tuesday. In an overwhelming show of support, voters followed the lead of Gov.
Charlie Crist, approving his recommended $9.2 billion property tax cut package
known as Amendment 1 as well as the Republican presidential candidate he
endorsed, John McCain. And the property tax results beat tough odds, stunning
local elected leaders who didn't think it would pass.
Arizona Sen. John McCain took a huge step to the
Republican presidential nomination Tuesday in the Florida
presidential primary. And Florida
property owners will get a tax break thanks to passage to Amendment 1. McCain,
the former Vietnam Prisoner of War, was declared the winner of Florida’s
57 convention delegates at 9:15 p.m.
Some lawmakers
say Amendment 1 is just the beginning of tax overhaul
Republican lawmakers from Brevard County were
elated with Tuesday's passage of Amendment 1, the $9.3 billion property tax
cutting measure. Municipal and school leaders in Brevard County were
not. "I think it sends a strong message that people not only want tax
relief, they want to see it continue," said state Sen. Mike Haridopolos,
R-Indialantic, a key Senate negotiator for the proposal.
Florida voters made their opinion
overwhelmingly clear Tuesday on Amendment 1: They support property tax relief
any way they can get it. With more than three-quarters of precincts reporting,
the property tax reform amendment was projected to pass statewide Tuesday
night, garnering an estimated 64 percent of the vote. The amendment needed 60
percent approval to pass. Locally, the plan, endorsed by Gov. Charlie Crist,
passed by more than a two-to-one margin in most counties.
FORT MYERS: Amendment 1 has been voted
through. Many say it is the issue that pushed a record number of voters to the
polls. Amendment 1 essentially doubles the homestead exemption and it means an
extra $240 for most Florida
homeowners. The City of Punta Gorda,
the Southwest Florida Professional Firefighters and Paramedics and several
other civic groups were against the measure while the governor and local real
estate groups wanted people to vote yes on the property tax amendment.
By the time voters went to the polls Tuesday the
fight over Amendment 1 came down to who would win, who would lose and voter
attitudes about local government's effectiveness. By the time the vote was
counted, reformers won the day. Longtime homeowners were big winners, but
businesses got a share of the breaks, too. The tax-reform proposal will have
direct impact on local governments, homeowners and businesses and renters,
customers, first-time home buyers and citizens indirectly.
Do you want to cut your property taxes? At what cost
are you willing to do so? Florida
voters settled those questions Tuesday as they cast their votes on Amendment 1.
The property-tax cutting constitutional amendment would double the homestead
exemption for primary homes except on school taxes and provide an average tax
savings of $240 a year.
SARASOTA - 68% of Sarasota County
voters said yes to Amendment One...yes to lower property taxes. Sarasota County
commission chair Nora Patterson, "I thought it would pass, but I didn't
think it would pass by that percent." By voting yes, homeowners will now
save an average of $240 a year. But city and county commissioners say
that savings comes with a cost.
The voters couldn't have spoken any louder or
clearer Tuesday when they overwhelmingly supported the Amendment 1 property tax
cut. Let's see if Florida's cities and
counties finally get the message. Expect to hear them whine about
"dire" cuts, but remember how fat their budgets grew over the past
few years when property values skyrocketed. That said, it's equally important
lawmakers don't get the wrong message from Tuesday's vote.
Long-term fallout
from Amendment 1 win may cause more problems than it solves
Take the $240 and run. That proved to be the
sentiment of Florida voters
Tuesday as they approved the Amendment 1 tax relief measure and took the state
into treacherous, uncharted fiscal waters. They did it although the
amendment gives the most tax relief to those who need it least, longtime Florida
residents. It also shifts more of the already unfairly distributed tax burden
to first-time buyers, owners of second homes and businesses.
People who are for Amendment 1 argued it would spark
future reforms to the state's tax structure. People who are against Amendment 1
argued it would short-circuit other, more promising attempts to fix the state's
tax structure. Amendment 1 passed Tuesday night. And coupled with the strong
showing of his presidential candidate, John McCain, it looked like Gov. Charlie
Crist had a very good evening, indeed.
This information originally published on January 30, 2008.
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