State Considers Florida Property Tax Limits

Responding to an angry public, the state may impose sharp restrictions on the authority of counties, cities, towns and villages to raise property taxes, setting up a ferocious battle with the politicians who run local governments.

The Broward County housing market and its municipalities have taken in an extra $1.4 billion in property taxes since 2001, causing critics to question whether the governments have spent their money wisely.

Local leaders say they’ve been good fiscal stewards. And they’re gearing up to fend off the proposal many fear more than any other: prohibiting tax increases greater than what’s needed to keep up with inflation and population growth.

They claim such a restriction could force cuts in important services such as police and fire protection, an assertion others dismiss as a scare tactic.

Stephanie Osborn doesn’t care about the political infighting. Capping local government taxing authority sounds like a good idea to the Davie insurance adjuster, mother of two and wife of a school principal. Otherwise, Florida mortgage costs just add up.

“They’re already getting a lot of money. I don’t understand why they still need to have more, more, more,” she said. “I’m not a politician. I’m not a tax person. I don’t understand where all the money is going.”

State Rep. Jack Seiler, D-Wilton Manors, said public concern about Florida property taxes is so great that action by the state Legislature is certain. Seiler is a former mayor skeptical of caps, but he has been telling local governments to prepare for something they won’t like even though the final outcome is months away.

Christine Hansen, president of the Realtor Association of Greater Fort Lauderdale, said her organization supports caps because property taxes “have gone up so significantly over the past several years [and] we’re not seeing where the money is going.”

High taxes are hurting the Florida real estate market, she said.

That view is getting a sympathetic hearing in the state capital, particularly from Republicans who control the House and Senate.

While avoiding firm commitments before a comprehensive property tax plan is crafted, state Sen. Mike Haridopolos, R-Indialantic –Finance and Tax Committee chairman - and state Rep. Ellyn Bogdanoff, R-Fort Lauderdale - part of the majority leadership team - said there’s merit to the idea.

“The principle we’re trying to follow is: Should government revenue grow faster than family revenue?” Haridopolos said. “It’s going up twice as fast as family revenue.”

Mayors, commissioners and council members counter that they’ve been responsible. Other counties and municipalities may be extravagant spenders, the Broward leaders said, but the places they represent have been models of frugality.

“Most cities are already pretty lean,” said Miramar Mayor Lori Moseley, president of the Broward League of Cities, which represents all 31 municipal governments in the county.

Moseley and County Commissioner Kristin Jacobs said their governments are among those that have cut tax rates in recent years. They insist that Florida home loan costs have gone down in recent years.

“It’s very sexy for [state legislators] to sit up high and tell the counties to rein in their spending [and say] they’re spending like drunken sailors,” Jacobs said. “They’ve been saying it, but it’s not true.”