Pasco Rally Backs Property Tax Changes

By DAVID SOMMER, The Tampa Tribune

Published: January 12, 2008

NEW PORT RICHEY - More than 250 real estate professionals rallied Friday to hear spirited endorsements of a proposed property tax amendment from the core of Pasco County's legislative delegation.

"We have an opportunity with this constitutional amendment to make the American dream a reality to everybody in this state," state Sen. Mike Fasano, R-New Port Richey, told the crowd.

The real estate agents cheered as Fasano described what he said is a solution to the state's stagnant housing market.

Older residents feel trapped in their homes because under the current rules, they will lose their Save Our Homes tax cap should they, for example, sell an expensive waterfront home to move to a more practical condominium, the senator said.

Young families are priced out of the housing market because they cannot afford high property tax bills based on the full value of newly purchased homes, he said.

"Portability is the key," Fasano said of the proposed amendment, which would allow homeowners to take their Save Our Homes tax reductions from their current properties to new ones.

"The freedom of portability is designed to restore our state's economy," he said, drawing applause.

First-time homebuyers will benefit from an increase in the homestead exemption to the first $50,000 of a property's value, he said.

And a 10 percent cap on annual tax increases for business properties coupled with a $25,000 exemption on the Tangible Personal Property Tax will save money and make future tax bills predictable for small-business owners, Fasano said.

"At least with the 10 percent cap, you know what to expect," he said.

State Rep. John Legg, R-Port Richey, said that as an educator and a legislator, he can see past the arguments that a "yes" vote on Amendment One is a vote to reduce the quality of Florida's public schools.

Florida's current tax situation is stifling growth of the tax base, Legg said. It prevents young families from moving into desirable school districts and thwarts dreams of home ownership, he said.

"When you rent you are a slave to your landlord and you are going to see rentals skyrocket," if the amendment does not pass, Legg said. And the current tax scheme "makes even the landlord a slave to the government."

"If we don't pass this legislative amendment, you are not going to see an increase in education," he said.

Although many elected officials at the county and city levels have issued stern warnings that the proposed tax relief will result in a sharp reduction of services, Pasco County Sheriff Bob White was on hand Friday to support the legislators.

"A 'yes' vote is essential to the financial health of the state," said White, who acknowledged that he will lose 10 proposed new deputy positions if the amendment passes.

No county commissioners were at the rally, staged at the West Pasco Board of Realtors headquarters in New Port Richey.

Reached by cell phone, county commission chairman Ted Schrader said voters need to carefully weigh the benefits to their own pocketbooks versus the reduction in government services that will result if the amendment passes.

"They need to ask themselves if they are willing to see a reduction in services. Some of the services are quality of life and some are necessities," the commissioner said.

"Out of respect to the voters, we need to clearly hear from them," Schrader said. "That's going to be a short-term fix. We don't need a quick tax fix, we need true tax reform."