If homestead passes, taxes may rise
BY LISA NEWELL Gulf Breeze News lisa@gulfbreezenews.com

The marketing effort being put forth by Gov. Charlie Crist and the Florida legislature sounds enticing: vote to approve the constitutional amendment on January 29 and you can double your homestead exemption from $25,000 to $50,000.

But what hasn't been marketed as well is the fact that taxing districts can "roll up" the tax rate to make up for any shortfall the additional exemption would create.

In short, most homeowners will pay for their governmental services one way or the other.

County Property Appraiser Greg Brown says he has a duty to understand every angle of amendment one. His questions to the Department of Revenue surprisingly revealed that the amendment does not prevent the county from "rolling up" the millage rate.

Brown said, "if the amendment passes and the county holds the millage steady, they will lose 12 percent of their ad valorem tax revenue. While I hope the millage would not be rolled up, I think it is important for the taxpayers to be fully informed so they can make the best decision on January 29th," Brown said.

He said the proposal is reminiscent of the "Five for Florida" plan touted by then-Governor Bob Graham, which instituted the homestead exemption but allowed increases in millage rates to cover the amount "saved" off the home value.

"We had people lined up around the block to complain about their property tax," Brown said, back when that initiative passed in the early 1980s.

In fact, the Santa Rosa Property Appraiser says that the taxing districts could gain, primarily by increasing the taxes on nonhomesteaded commercial and investment property.

In 2007, Santa Rosa County collected $56.7 million in revenue. If the Additional Homestead Exemption passes, and if the county rolls up the millage rate, it can expect an increase of $1.65 million.

The City of Gulf Breeze collected $1.06 million in revenue 2007. If the Additional Homestead Exemption passes, and if the city rolls up the millage rate, it can see an increase of $43,533.

Santa Rosa County Schools collected $67.2 million in 2007. If the Additional Homestead Exemption passes, and if the school board rolls up the millage rate, it can see an increase of $1.739 million.

Midway Fire District collected $2.787 million in revenue last year. If the Additional Homestead Exemption passes, and if the Fire District commissioners roll up the millage rate, the district can see an increase of $53,000. If Midway's fire levy referendum passes on the same ballot, revenues can skyrocket to $5.031 million unless their board elects to roll back the millage rate.