Florida Tax Reform – Amendment 5

The State of Florida is still in desperate need of property tax reform & reduction. The measure that was approved last year has helped to provide some limited tax reductions, but has turned out to be a complicated & very limited property tax reduction effort. There is a new initiative to significantly reduce property taxes next year, called AMENDMENT FIVE, which would eliminate from 25-40% of today’s current property taxes, creating a SIGNIFICANT reduction in the total cost of home and/or business ownership. To replace the lost revenue, Florida sales tax would increase by about 1%.

5 Reasons To Vote YES for Amendment 5

Amendment 5 is a long overdue tax cut for all property owners: families, businesses, second homeowners and investors. Property tax levies have doubled over the past six years – from $15 billion in 2000 to $30 billion in 2006. With higher fuel prices and food costs, and stagnant incomes, it’s no wonder Florida families are struggling to make ends meet. If you’re living the American Dream in Florida, you stand to save 25% to 40% on your property taxes in 2010.

Amendment 5 will jump start Florida’s economy. Economists estimate that Amendment 5 will save property owners more than $10 billion in taxes. This will increase the liquidity and net spendable income of millions of property owners.

Amendment 5 will shift the burden of funding education from property owners to all who access the public school system. Currently, property owners pay a disproportionate share, compared to renters, for our schools. And property owners whose children attend private school pay tuition and public school taxes. By funding schools through sales taxes and other measures, Amendment 5 creates a more equitable tax system.

Amendment 5 offers much-needed tax relief for millions of property owners and continues the momentum created by Amendment 1 – approved by voters in January 2008 – toward reforming Florida’s archaic property tax system. Amendment 5 also pressures legislators to get serious about tapping stable and lucrative revenue sources for schools such as Internet sales (a $3 billion cash cow and an increase in state sales tax — much of it paid by non residents!).

Amendment 5 will provide much-needed tax relief to Florida’s seniors, many of whom fear losing their homes because of an inability to pay higher property taxes on a fixed income. On November 4, you have an unprecedented opportunity to vote YES for the biggest property tax cut in Florida history. Vote YES on Amendment 5.

The Five Most Common Myths about reducing Property Taxes Further:

Myth #1
Opponents say Amendment 5 will take valuable funding away from schools.

False! Amendment 5 requires the Legislature to provide required funding for schools. Instead of the funds coming from property owners in the form of taxes, it could come from sales taxes, reduced spending or any other source determined by lawmakers.

Myth #2
Opponents say Amendment 5 will raise the state sales tax and disproportionately affect the poor and needy.

False on two counts! First, Amendment 5 does not require the Legislature to increase the state sales tax. Second, necessary goods and services will remain exempt from a higher sales tax. These include unprepared food, rent, heating fuel, medicine, electricity and health care services.

Myth #3
Opponents say Amendment 5 equals a sales tax on services.

False! Amendment 5 does not dictate to lawmakers how to make up the revenue to fund our schools — including any new tax on services. It points out obvious options, such as a reduction in spending, and encourages lawmakers to come up with other revenue sources, such as collecting sales tax on items currently taxed in retail stores but not when purchased on the Internet.