House Republicans say they're still serious about passing sweeping property tax reforms this year. But it's clear the wind is no longer at their backs.
Stung by the cold shoulder from cities and counties, Democrats and rural lawmakers, House leaders are softening support for an ambitious proposal to slash local budgets by $5.8 billion announced last month.
Today, House Republicans will amend their plan to exempt hospital districts, children's services councils and poor counties from those cuts, and to add some rent relief to the proposal.
The House plan still attempts to roll taxes on all property back to 2000 levels, to change the way property is appraised and to offer businesses tax breaks on computers and machinery. But House Republicans conceded the centerpiece of the proposal to impose massive cuts on cities, counties and other taxing districts had become a bargaining position with the Senate that was likely to soften.
"It'll end up being a big chip," said Rep. Dave Murzin, R-Pensacola. "And we're not going to give away all the cards right now."
House Republicans are in a bind partially due to the constitutional restraints they face. Any proposals that would go to voters this year require a three-fourths majority in the 120-member House and 40-member Senate, meaning every disgruntled member holds great sway in shaping the plan.
Last week, smaller counties and cities told House lawmakers their plan would produce Draconian cuts in services for poorer governments that hadn't seen giant run-ups in property values, an argument that won over some rural House Republicans.
"We took to heart what we thought local governments were saying," said House Budget Chief Ray Sansom of Destin. "They made a very good case."
Senate lawmakers, meanwhile, want a far smaller rollback, perhaps to a 2004 or 2005 level that would shave only 10-20 percent from the budgets of cities and counties.
The Senate also remains unsold on a constitutional amendment to swap homesteaders' property taxes for a higher sales tax.
"That's going to cause more unpredictability," said Sen. Don Gaetz, R-Niceville, who said he feared the sales tax would drive shoppers from his home Okaloosa County to Alabama.
Instead, the Senate is leaning toward a plan to target second-home owners, rental and commercial properties with a leaner property tax reduction that wouldn't hit counties and cities like the House plan does with 30 percent to 40 percent tax revenue losses.
Senate Finance and Tax Chairman Mike Haridopolos, R-Indialantic, also said he favors a broader spending cap on local governments or perhaps Gov. Charlie Crist's plan to impose Save Our Homes-like caps on non-homesteaded property instead.
"We're going to focus on non-homesteaded property, because they're the ones that have borne the brunt of the run-up in property taxes," Haridopolos said.