Lakewood Ranch, FL Blog

If you are like most people I talk with, you are probably unaware that we will be voting in November on an amendment which will offer monumental savings in property tax.  Depending on where the property is located in the state, the amendment will result in a property tax reduction of 25-40%!  This savings will, in my opinion, result in a much-needed increase in both the number of Florida residents who will now be able to own their own home, and the number of folks wanting to relocate to Florida from other states but, when told about our high taxes, are disappointed to learn that they can't afford to purchase here.  These two groups will begin buying up properties and our housing market, and economy, will improve greatly.

So, you might ask, how can state and local governments afford to give up 24-40% of their (our) income?  Basically, here is how Amendment 5 works:

• School boards currently are funded locally through what is known as a Required Local Effort (RLE) property tax levy on your property.  Amendment 5 will abolish this
• Amendment 5 will require the legislature to fund the schools at the same monetary level ($10-11 billion in 2010) as they would have received through the RLE so there is no loss in revenue to the schools
• You can see how much you would save, go to your tax bill or TRIM notice (www.taxcollector.com for Manatee County) and look at the itemized section.  The line that reads "State law required" or similar language represents the amount you would save...assuming the other aspects of your tax bill remain the same.

Where will the state get the money?

• Amendment 5 allows for budget cuts in other areas of the state budget, and the repeal of sales tax exemption loopholes like ostrich feed, luxury skyboxes, etc. while preserving basic exemptions like food, rent, heating fuel, medicine and health care.
• Amendment 5 also allows for a 1% increase of the statewide sales tax from 6% to 7%, and other tax revenues like a cigarette tax

Is this bad for schools and teachers?

• The amendment requires the legislature to fund the schools at the same levels...they won't go without funding
• Amendment 5 continues to allow local school boards to levy discretionary millage so special needs can still be met

Who benefits from Amendment 5?  Everyone!  Why?

• Private property owners, under the current system, pay a disproportionate share of school tax, compared with renters. 
• Private school parents now pay for both public and private schools. 
• Renters might even save, too, since they may be able to purchase their own homes; plus, because Amendment 5 also reduces the assessment cap on non-homesteaded property from 10% to 5%, they'll probably see fewer rent increases from their landlords who won't have their property taxes climb as high as they would otherwise.
• This may also finally be the impetus to create a tax on internet sales purchases.  I know...how is that good you're thinking.  We lose a boatload of revenue everyday because of internet commerce.  This puts local businesses (a major source of employment) at a distinct disadvantage.
• Sales tax is paid by everyone based only on their level of consumption which seems fairer to me than paying more tax because the market value of my home has gone up.
• Everyone pays the same sales tax rate.  Right now, your property tax and your neighbor's property tax can be greatly different, even if your homes are identical.
• I don't mind having tourists help us out in this regard.

It may not be perfect and I am sure that you'll hear plenty of arguments against it as we get closer to the election but I think, in the long run, this amendment stands to help Floridians in many different ways.  We need tax relief, bigtime.  As we have all learned, lately, the housing market is a huge engine in our economy.  It's time to crank 'er up!

I'm not a huge hockey fan but I'll admit I was excited to hear that we in Lakewood Ranch were going to have a hockey arena practically within slapshot distance, complete with an East Coast Hockey League team.  And, although I wasn't too keen on the traffic it would bring, I looked forward to having the other concerts and events the multi-purpose venue would provide.  Unfortunately three years ago, DVA Arena LLC's money dried up and we were left with an ugly concrete hulk standing in the middle of a field (with a really nice drive-up though) while all the creditors took their shots at trying to recoup their losses. 

Yesterday, it looked like we were finally going to get to the end of the beginning and the beginning of the end.  That is to say, the foreclosure sale was scheduled to take place at the courthouse and, from all published accounts, it was expected that SMR, the developer of Lakewood Ranch, who is owed $6.7 million, would buy the property, knock down the wreck, and try again with another, perhaps more suitable, partner.  At the last minute, though, DVA Arena filed Chapter 11 and put everything back on hold for anywhere from three months to possibly a year.  Great.  They haven't paid any of their $16 million in debt on the project in the past three years, according to reports, but now they think they can come up with the money to build the thing, and pay off the debt.  Is it an ego thing?  A get even thing?  I don't know but I do know it isn't doing anything for our community and it is time for DVA Arena to get out of the way of progress.

If you are one of the 77,000 homeowners in foreclosure in Florida right now, you know how difficult a time it can be.  The fact that banks don't want to foreclose, though, is often overlooked by homeowners who believe that foreclosure is an inevitable outcome.

Here's some good news!  Florida Legal Services and the Florida Bar Association have teamed up to establish a toll-free hotline - (866) 607-2187 - that consumers can call and speak with an attorney, at no charge.  The attorney will then negotiate with the lender on behalf of the client to keep the home from being foreclosed!

More than 10,000 attorneys have volunteered their services to the program, according to Florida Legal Services, Inc. 

On my previous post, I mentioned that the proposed constitutional amendment, Amendment 5, which would result in property tax reductions of at least 25%, would no doubt soon be attacked by those who felt that their stream of easy money, or protection from being taxed, might be in jeopardy.  Sure enough, a lawsuit was filed on July 3rd by The Coalition to Protect Florida's Economy, a coalition of special interest groups and individuals, seeking to pull the amendment on the basis that it was "reckless" and "misleading."

Barney Bishop, president and CEO of Associated Industries of Florida, joined the lawsuit with other special interest groups to oppose the amendment. Bishop was quoted in the Coalition's press release as suggesting that the amendment “jeopardizes the economic growth of our state” because companies considering a relocation to Florida won’t be able to calculate the taxes they’ll be forced to pay. “This reckless venture sends a signal to the business community everywhere to avoid relocation or expansion of business operations in Florida,” says Bishop.  Uh huh.

Orlando economist Hank Fishkind disagrees, however. He says that passage of Amendment 5 would create 72,000 jobs, increase property values by some $80 billion and pump about $6.9 billion into home construction. “Overall, I think it would be very positive for the economy,” says Fishkind.

Coalition members that were named parties in the lawsuit include the Florida School Boards Association, Florida Association of District School Superintendents, Florida Association of School Administrators, Florida Farm Bureau Federation, Florida Institute of Certified Public Accountants, National Federation of Independent Business-Florida, Associated Industries of Florida,  Printing Association of Florida, and the Florida Fruit and Vegetable Association.  I don't know this for a fact, but I would bet that each group either believes the amendment means less money for them, or the loss of some of the $23 BILLION in tax loopholes they either enjoy now, or make a living from by advising their clients. 

So, apparently, these people either believe that the loopholes and business perks they've lobbied for and won (at our expense) in the past are more important than property tax relief for nearly everyone in Florida, or they believe that "we, the people" are too stupid to figure out whether we should be in favor or opposed to something on our own.  Thank goodness we have them to tell us that we can't determine these things ourselves.  Let's hope that the lawsuit doesn't succeed in taking the power out of our hands.  Win or lose, property tax relief should be up to the people of Florida, not the special interests.