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FOR IMMEDIATE RELEASE
JUNE 18, 2010
CONTACT: Kristy Campbell
850-241-1885
kristy@billmccollum.com
BILL MCCOLLUM ANNOUNCES PLAN TO FREEZE PROPERTY TAXES AND CAP LOCAL GOVERNMENT SPENDING
~ Plan would freeze millage rates at 2010 levels for 2 years, and would prevent local government spending from increasing faster than the wealth of Floridians ~
Tampa, FL – Today, Republican gubernatorial candidate Bill McCollum announced an aggressive proposal to reform local government taxing and spending. This plan is a part of his economic and job creation agenda for Florida, entitled “Real Solutions. New Jobs: A Roadmap for Florida’s Future.” When implemented, these initiatives will create more than 500,000 new jobs in six years.
“With double-digit unemployment rates and falling property values, this is the time when families should count on their state government to reduce tax burdens and provide a more stable climate,” said Bill McCollum. “On a fundamental level, I do not believe that government should grow faster than the constituents it serves. Government, like Florida households, must make tough decisions. As Florida’s next Governor, I will fight to pass this Property Tax Solution that will stabilize Florida’s tax burden on residents and businesses, and create a stable environment where our economy will prosper.”
Between 1986 and 2006, local government spending grew almost twice as fast as the increase in personal income. This means the percent of Floridians’ paycheck that goes to local government is disproportionately more than it was in 1986. Millage rates are what determines the amount Floridians pay in local taxes, including property taxes, special taxing districts, and local fees.
Attorney General McCollum believes that reining in local taxes and spending will grow Florida’s economy because more hard-earned dollars will remain in the private market. His two-part solution would freeze millage rates for two years at 2010 levels and, and would limit the growth of local government spending by tying it to a measure of the income and/or population growth of communities.
“Immediate action is necessary,” said McCollum. “Private economic activity, not government programs, rescues economies. Freezing millage will allow Floridians to recover from the recession, and in the long-term, local government spending limits will ensure that government never grows faster than the communities they serve.”
“In these tough economic times, freezing millage rates will result in a property tax cut for millions of Floridians and businesses at the very time they need it most,” said Kenneth Wilkinson, Lee County Property Appraiser, and father of the Save Our Homes amendment that passed in 1992.
The proposal, which would provide for exemptions in the event of emergencies or voter referendum for specific projects, will protect taxpayers from unpredictable increases in their tax rates. The proposal has been endorsed by the National Federation of Independent Businesses.
“These tax and spending reforms will make Florida more attractive to both business and individual investment,” said Bill Herrle, Executive Director of the Florida National Federation of Independent Businesses. “The McCollum proposal takes a strong stand for Florida taxpayers both in the immediate and in the long-term.”
While homesteaded properties in Florida have some protection from large annual tax increases, commercial and rental properties do not. Attorney General McCollum’s proposal would be a big win for businesses and tenants who today shoulder a disproportionate tax burden and too much unpredictability in their year-to-year budgets.
The McCollum economic and job creation plan has been endorsed by Steve Forbes, and is estimated to create over 500,000 jobs in the next 6 years. This property tax proposal is a component of the plan, and includes the following:
Real Solutions. New Jobs: A Roadmap to Florida’s Future
The McCollum Local Government and Property Tax Solution
· Florida is facing the greatest economic challenges we have experienced in decades. With double-digit unemployment rates and falling property values, this is the time when families should count on their governments to reduce tax burdens and provide a more stable climate.
· Yet Florida has not provided solutions to core tax problems. Florida is falling in national rankings as a state that offers a business-friendly environment in part because of our increasing tax burdens.
· This Property Tax Solution will stabilize Florida’s tax burden on residents and businesses, and create a stable environment where our economy will prosper.
· Currently, while homesteaded properties have some protection from large annual tax increases, commercial and rental properties do not. It is time for Florida to create a more predictable, equitable climate for all residents and businesses.
· Property taxes are the primary source of local government revenues. Yet when families are struggling to make ends meet, this should be the last time during which local governments disproportionally increase tax burdens.
· Unfortunately, this is exactly what has happened over the past many years: local government spending has increased well beyond increases in the wealth of their residents.
· Between 1986 and 2006, local government spending grew almost twice as fast as the increase in personal income. That means the percent of Floridians’ paycheck that goes to local government is disproportionately more than it was in 1986.
· This lack of fiscal discipline is unsustainable. Governments should never grow faster than the constituents they serve. Government, like Florida households, must make tough decisions.
· Controlling local taxes will grow Florida’s economy because more hard earned dollars will remain in the private markets and government spending will reflect economic realities.
· This will make Florida more attractive to both business and individual investment.
· The McCollum Property Tax Solution has two components that will change the way that local governments collect and spend taxpayer dollars.
(1) In the immediate: Freeze millage (property tax and local tax) rates for two years at 2010 levels.
(2) For the long-term: Limit the growth and cap local government spending.
· Below are more details for each of these two proposals.
(1) Freeze millage (property tax and local tax) rates for two years at 2010 levels
· Local tax increases impact every business and resident of our state.
· Immediate action is necessary.
· Freezing millage at 2010 levels will ensure local governments don’t simply raise taxes to cover losses caused by shrinking property values.
· Private economic activity, not government programs, rescues economies.
· Freezing millage will allow Floridians to recover from the recession, and allow more dollars to be spent in the private markets rather than in more government programs.
(2) Limit and cap the growth of local government spending
· Local government spending has exceeded the income growth of their communities.
· When times are tough for Floridians, government spending should not be rising.
· Under this Solution, government will never grow faster than the wealth of the people they serve.
· This proposal will limit local government spending by tying it to the growth of wealth in communities. For example, if the personal wealth of Floridians has grown by only 2%, local governments would not be able to increase their spending by greater than that amount.
· The wealth of Floridians can be measured by indicators such as Personal Income, or Population Growth plus Inflation. As Governor, Bill McCollum will work with the Legislature to select a measure which provides the greatest protection for taxpayers.
· Further, to protect taxpayers in years where there is extraordinary income or population growth, this proposal would cap local government spending increases at a maximum of 5%.
· There may be certain compelling reasons for exceptions. This proposal will include a process for making exceptions in the event of true emergency or voter-approved non-emergency projects.
For more details on Bill McCollum’s “Real Solutions. New Jobs: A Roadmap for Florida’s Future,” and to download the entire plan, please visit www.BillMcCollum.com.
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