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The 2007 Legislative Session - A Stormy
Environment for Floridians?
Florida's State elected officials have a complex set of social and economic issues to deal with in this upcoming session. Just as a particular set of natural forces can create a hurricane, the wrong legislative response to these complex issues could create a threat to Florida's future. At the core: property value. Four primary issues affect the value of Florida real estate - Insurance, Property Tax,
Transportation Funding and Affordable Housing.
Insurance: Every Florida homeowner has felt the result of past hurricane disasters; the cost to purchase homeowner's insurance has risen dramatically.
Leadership in the House and Senate called a special session to
pass legislation bringing insurance costs under control.
What's
Happening Now.
Property Tax:
Florida’s Property Tax system has created inequity. The Florida
constitution contains a provision Save Our Homes (SOH) that caps the annual increase in assessed value of a homesteaded property to no more than 3% per year. Since the property tax millage rate is applied to assessed value SOH has resulted in homesteaded property owners paying the same or less each year, depending on millage increases or decreases. Without this value limit non-homesteaded property owners, businesses, landlords and second homeowners, are paying significantly more property tax. Property tax revenues are critical to provide local government services to the community.
Transportation Funding:
New residents mean an increase in local government services - roads, water and sewer, schools. These services are funded by taxes and fees. And existing services, particularly roads, require ongoing maintenance and expansion. Governments are pushed to provide for growth needs and ongoing maintenance and operations without new taxes. The state continues to reduce it's funding for roads, leaving it up to the local governments to try to maintain flow, but roads are expensive and travel does not recognize government boundaries. Local governments can not assume funding for roads previously funded by the state.
Affordable Housing:
Florida has a shortage of affordable housing. Increased property values make it difficult for many people to buy homes. There are numerous federal, state and local programs attempting to make homes more affordable. Most of these programs focus on the lowest income residents, but property values have made it difficult for even middle income families to afford a home. Existing programs are complex requiring expertise to administer and providing only moderate subsidies. None of the existing programs have kept up with the dramatic rise in property values.
A piecemeal response to these complex issues threatens to create an economic storm in Florida. As a community we need to keep an eye on the collective outcome of legislative modifications.
Do your part to understand the issues and let your elected leaders know what you think. Use Your Voice and help impact the decisions that will affect our community for years to come.
updated 1/24/2007
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Create your hurricane
