Status of Property Tax Reform May 22, 2007

Property Tax Reform l Joint Committee MeetingMay 21 l Joint Committee MeetingJune 4 l BCC WorksessionJune 5 l Special Session June 12-22

Property Tax Reform l The Proposals Governor’s Proposal House’s Proposal Senate’s Proposal Revised Conceptual Proposal

Property Tax Reform Governor’s Plan Up to $180.5 Million Annual Impact l Rollback 2004 l Full Portability l Double Homestead Exemption l Small Business Exemption

Property Tax Reform House Plan $132.8 Million Annual Impact l Rollback 2001 l Small Business Exemption l Eliminate Homestead Property with Sales Tax

Property Tax Reform Senate Plan $57.1 Million Annual Impact l Rollback 2006 l Extra $25K Homestead Exemption for First Time Home Purchase l Portability with a Cap l Small Business Exemption l Affordable Housing

Property Tax Reform Revised Conceptual Plan $130 Million + Annual Impact l Homesteaded Properties 80% exemption for first $300,000 of just value 70% exemption for the next $700,000 of just value 30% exemption for just value in excess of $1 million

Property Tax Reform Revised Conceptual Plan $130 Million + Annual Impact l Non-Homesteaded and Commercial Properties Some percentage exemption Undefined/undetermined

Status of Property Tax Reform May 22, 2007

Property Tax Reform House Democratic Caucus Plan l Additional Homestead Exemption Equal to One Half the Median Home Value in the County Applied after the first $50K of home value Choose between additional exemption and “save our homes” l Low Income Seniors Exemption Equal to the Full Median Home Value in the County Applied after the first $35K of home value Replace the current “save our seniors” exemption

Property Tax Reform l Non-Homesteaded Properties Would be given an exemption equal to 25% of the median home value in the county Applied after the first $25K in home value l Rental income approach for affordable housing would be authorized by general law l House Democratic Caucus Plan

Property Tax Reform l Commercial property exemption up to 250K for the first 1 million of property value Not applied to properties with Ag exemption Exemption would be indexed for inflation l House Democratic Caucus Plan

Property Tax Reform l State and local government revenue control Freezes property taxes (including required local effort) at an adjusted rollback rate Beginning next year, allows for increases equal to personal income growth Can only be exceeded by 2/3 vote All fees and non-ad valorem subject to same 2/3 vote requirement l House Democratic Caucus Plan

Property Tax Reform l Save our Homes cap would be replaced upon sale with a 7% cap l Limits on assessment increases for all real property (except grandfathered homestead property) to 7% per year l Exemptions phased in over two years, except for additional homestead exemption l House Democratic Caucus Plan