Proposed tax reforms alarm SRC leaders
BY FRANKLIN HAYES Gulf Breeze News franklin@gulfbreezenews.com

Despite a recent property tax windfall, county officials say they're still operating under a tight budget. As the state legislature attempts to revise property tax law and local government spending, county leaders are calculating the financial impacts of the proposed reforms.

According to the county's Budget Director Joel Haniford, the county currently has less that $5 million in its general revenue fund after property, or ad valorem, taxes increased Santa Rosa's gross income from approximately $42 million to $54 million in 2006.

"Obviously, we saw a spike in the revenue," Haniford said. "However, that was a onetime spike and now we're coming back to a normal pattern."

That spike in revenue was not unique to Santa Rosa County. A recent report presented to Florida Lawmakers by the Florida Association of Counties (FAC) says that since 1999, county revenues have grown by $3.9 billion statewide. However, the FAC argues that a majority of this increase over the last 8 years was negated by inclement weather and general inflation. Nevertheless, the Florida Legislature is looking

to reel in what Tallahassee lawmakers see as "champagne" spending throughout the state.

Governor Charlie Crist has his own set of reforms he'd like to see come to fruition. One such suggestion includes removing property tax completely and replacing it with the nation's highest sales tax. Another set of options deals with property assessments and the homestead exemption. Those include:

A $25,000 increase to the homestead exemption, raising it to $50,000

A $25,000 tax exemption for businesses

A 3 percent cap on valuation increases for non-homesteaded properties

A revision to the Save Our Homes Amendment making the homestead exemption portable throughout the state.

"If these initiatives had been in effect for this current year the county would have reduced their tax intake by $11.3 million," Haniford said.

Although Santa Rosa County Commissioners agree that property tax reforms are necessary in the near future, but argue that the tax system needs greater equity and fewer restrictions.

"Different counties are at different stages of their maturity or in their growth pattern or in their ability to adapt to these changes," said Commissioner Gordon Goodin. "It is unlikely that one size fits all 67 counties here."

Commissioners plan to work closely with the FAC and their legislative delegation to minimize financial impacts from the proposed reforms.