Could property tax cuts affect local services

AS THE FLORIDA SENATE WORKS ON ITS OWN VERSION OF A PROPERTY TAX RELIEF BILL QUESTIONS REMAIN ABOUT WHAT DO ANY PROPERTY TAX CUTS MEAN FOR THOSE SERVICES RELIANT ON THOSE FUNDS? AT A RECENT NEWS CONFERENCE, FLORIDA CHIEF FINANCIAL OFFICER BLAISE INGOGLIA WAS OUT OF IT THAT THE PROCESS IS NOT BEING RUSHED AND ANY PROPOSAL WOULD NOT IMPACT EMERGENCY SERVICES THROUGHOUT THE STATE. >> WE WERE WAITING FOR EVERYONE TO START COMPLAINING ABOUT PROPERTY TAXES. WE SAW SOME OF THE PROBLEMS THAT WE WERE HAVING A CROSS THIS STATE. SO WHAT DO WE DO? WE START TO BE AGGRESSIVELY START TALKING ABOUT REFORMING A PROPERTY TAX SYSTEM BECAUSE PROPERTY TAXES ARE STARTING TO GET OUT OF HAND HERE IN THE STATE OF FLORIDA. AND WHILE I'M HERE, WHILE MY LAW ENFORCEMENT HERE, I'M GOING TO SAY THIS. I SAY IT ALL THE TIME. I WILL CONTINUE TO SAY IT. THE FIRST ROLE OF GOVERNMENT IS TO PROTECT ITS CITIZENS. AND YOU DO THAT THAN BY MAKING SURE THAT OUR FIRE AND OUR POLICE HAVE THE RESOURCES THAT THEY NEED IN ORDER TO KEEP OUR COMMUNITY SAFE. SO IF ANY LOCAL GOVERNMENT IS OUT THERE SAYING THAT WITH PROPERTY TAX REFORM, WE'RE GOING TO HAVE TO CUT THEIR LAW ENFORCEMENT CAUGHT FIRE. YOU DIRECT THEM TO ME. BECAUSE I WILL TELL THEM NO, THEY DON'T. >> FOR MORE ON THE DEBATE OVER PROPERTY TAXES, WE ARE NOW JOINED BY LEE COUNTY PROPERTY APPRAISER. MATT CALDWELL. >> AT CALDWELL, THANK YOU SO MUCH FOR JOINING US TODAY. ABSOLUTELY. GLAD TO BE HERE. >> AT THE BEGINNING OF THIS LEGISLATIVE SESSION. >> A PROPOSAL TO ELIMINATE PROPERTY TAXES IN FLORIDA WAS PASSED IN THE HOUSE SUBCOMMITTEE. WHAT WOULD BE THE IMPACT IF THIS WERE TO BE PASSED, ULTIMATELY, WHAT WOULD BE THE IMPACT? >> ABSOLUTELY. THIS IS A MAJOR FEATURE OF THIS YEAR'S SESSION. WITHOUT A DOUBT. THE HOUSE OF REPRESENTATIVES HAS PUT FORWARD 7 DIFFERENT CONSTITUTIONAL AMENDMENT PROPOSALS. THE ONE THAT'S READY FOR THE FLOOR THIS MOMENT HJR 2 OR 3 WOULD ELIMINATE PROPERTY TAX FOR ALL HOMESTEAD PROPERTY OWNERS. IT WOULD PHASE THAT IN OVER A TEN-YEAR PERIOD. SO BETWEEN 2027 2037. IF IT PASSED AND THAT IS A KEY THING FOR A LISTERS TO REMEMBER VIEWERS TO REMEMBER IS THAT THESE ARE ALL GOING TO BE CONSTITUTIONAL AMENDMENTS. SO ANY REAL STRUCTURAL CHANGE TO PROPERTY TAX HAS TO GO TO THE BALLOT AND THE VOTERS ULTIMATELY DECIDE. >> AND THERE'S ANOTHER VERSION. THERE ARE MULTIPLE VERSIONS, AS YOU MENTIONED, AND ONE VERSION WOULD ELIMINATE ALL PROPERTY TAXES BY 2027. >> POTENTIALLY THAT IS ONE OF THE ALTERNATIVES AND THAT'S REALLY WHERE IT'S A LITTLE UNCLEAR AT THE MOMENT ABOUT WHERE THIS IS ULTIMATELY GOING TO LAND. YOU'VE GOT THE GOVERNOR WHO'S BEEN AN OUTSPOKEN ADVOCATE FOR PROPERTY TAX REFORM. YOU'VE GOT THE HOUSE, AS WE MENTIONED, HAS PUT FORWARD 7 DIFFERENT PROPOSALS. ALL A LITTLE DIFFERENT FLAVOR OF HOW TO DO THIS AND THE SENATE AT THE MOMENT. KIND OF WATCHING THIS UNFOLD AND LOOKING TO REACT AND FIGURE OUT WHAT THE RIGHT ANSWER IS. AT THE END OF THE DAY, CERTAINLY I WOULD SAY WE DO NEED TO LOOK AT PROPERTY TAX REFORM. THERE'S A LOT OF AREAS OF OPPORTUNITY. BUT SOME OF THE PROPOSALS ULTIMATELY COME WITH WITH A RATHER HIGH FISCAL COST. >> WELL, WE WERE DISCUSSING THAT WE'RE TALKING ABOUT BILLIONS OF DOLLARS IN THE STATE OF FLORIDA THAT IF THIS WERE TO COME TO FRUITION, THEN THAT WOULD BE A LOT OF MONEY THAT WOULD YOU NEED TO BE MADE UP ELSEWHERE. WHAT HOW WOULD THAT BE RECOUPED? >> THAT'S REALLY A PART OF THE CONVERSATION AND ISN'T ADDRESSED YET TO SAY IN THE CONSTITUTIONAL LIMITS THAT HAVE BEEN PROPOSED, YOU WOULD STILL NEED AN IMPLEMENTING BILL. AND SO THE LEGISLATURE WOULD HAVE TO SPEAK TO IT. WHETHER THAT FUNDING IS GOING TO BE MADE UP FROM THE SALES TAX. EITHER SALES TAX INCREASE OR SHERIFF STATE REVENUE FROM THE EXISTING 6% SALES TAX OR WHETHER IT'S SIMPLY GOING TO BE ATTACK SHIFT. IF THERE IS NO OTHER SOURCE OF REVENUE THAN ESSENTIALLY HOMESTEAD PROPERTY OWNERS PAY LESS OR 0 AND THE BALANCE IS MADE UP BY ALL THE NON HOMESTEAD PROPERTIES, THE GROCERY STORES, THE APARTMENT EVERYONE THAT HAS A DOES NOT HAVE A HOMESTEAD EXEMPTION. >> AND WHAT COULD THIS MEAN FOR SERVICES LIKE LAW ENFORCEMENT AND EMS LIBRARIES, INFRASTRUCTURE? >> WELL, IT CERTAINLY IS A CRITICAL CONSIDERATION. PART OF THE STRUCTURE OF OUR TAX SYSTEM IN FLORIDA REQUIRES THAT PROPERTY TAX CODE TO FUND THE BASIC ESSENTIAL SERVICES LIKE AGAIN, THAT'S PART OF WHY IT CAN'T BE CHANGED WITHOUT A CONSTITUTIONAL AMENDMENT. IT'S UP TO THE VOTERS TO DECIDE HOW THEY WANT THERE. BASIC LOCAL GOVERNMENT TO BE FUNDED IN TO BE STRUCTURED. SO IF YOU ELIMINATE OR SHIFT THE PROPERTY TAX, BUT YOU CERTAINLY NEED TO BE THOUGHTFUL ABOUT HOW YOU'RE GOING TO MAKE THAT UP BECAUSE THE VAST MAJORITY OF FUNDING THAT GOES TO THOSE ESSENTIAL SERVICES OF POLICE AND FIRE AND THE VARIOUS OTHER COUNTY AND CITY LEVEL RESPONSIBILITIES ARE PAID FOR THROUGH PROPERTY TAX. >> SOME VOTERS MIGHT WONDER IF WE REDUCE OR CUT PROPERTY TAXES. COULD THAT INCREASE ULTIMATELY THE VALUE OF THEIR HOME STUDDED. >> PROPERTY AS TIME GOES ON WITH SUPPLYING THE MAN IS A REAL THING. AND AT THE MOMENT, THE EVERY SINGLE STATE IN THE COUNTRY LEVEES A PROPERTY YOU KNOW, THERE'S REALLY 3 WAYS TO DRIVE REVENUE AT THE GOVERNMENT LEVEL PROPERTY SALES OR INCOME TAX. OF COURSE, FLORIDA PROHIBITED INCOME TAX. THERE'S ONLY ONE STATE, I BELIEVE NEW HAMPSHIRE THAT HAS NO SALES TAX. SO WE'D BE THE FIRST STATE TO NOT HAVE A PROPERTY TAX, AT LEAST ON THIS CATEGORY OF PROPERTY AND WOULD BECOME AS A RESULT OF VERY, VERY APPEALING FOR INVESTORS. AND FOR FOLKS TO MOVE HERE, WHEN YOU GET MORE DEMAND PRICES, YOU CAN DRIVE UP PRICES UP. SO IN LEE COUNTY. >> CAN YOU GIVE ME A SNAPSHOT? WALK US THROUGH WHAT IT WOULD MEAN FAIRLY COUNTY IF THIS ULTIMATELY WAS ELIMINATED, THE PROPERTY TAX. >> ABOUT HALF OF THE PROPERTIES IN LEE COUNTY HAVE A HOMESTEAD. WE'VE GOT AROUND 550,000 PARCELS AND ABOUT 225,000 HOMESTEAD ACCOUNTS. AND SO IF YOU SAY TOOK THE PROPOSAL THAT ZEROED OUT THE TAX LIABILITY FOR THOSE 225,000 HOMESTEADS, THE BALANCE THAT HAS TO BE MADE UP ON THE REMAINING HALF OF THAT ACTUAL AGAIN, ALL OF THOSE NON HOMESTEAD, THE GROCERY STORES AND APARTMENT BUILDINGS, ET CETERA. AND THAT SIGNIFICANT, I THINK YOU MENTIONED MAYBE 350 MILLION DOLLARS JUST ABOUT RIGHT, JUST FOR THE COUNTY GENERAL FUND IS AROUND 700 MILLION THIS LAST YEAR. AND SO IF YOU FIGURE ROUGHLY ABOUT HALF OF THAT, YOU'RE TALKING ABOUT A 3 TO 50 MILLION DOLLAR PRICE TAG. >> IS THERE ANYTHING ELSE YOU WOULD LIKE VOTERS TO KNOW ABOUT THIS MEASURE THAT'S BEING CONSIDERED? >> YEAH, I MEAN, ULTIMATELY THIS IS STILL A VERY FLUID PROCESS. AND SO WHERE WE SIT TODAY IN EARLY FEBRUARY, CONSTITUENTS NEED TO COMMUNICATE THE NEED TO TALK TO THEIR HOUSE MEMBERS AND SENATE MEMBERS. THEY NEED TO TELL THEM WHAT THEIR PRIORITIES ARE. THIS IS AGAIN, STILL GETTING VERY MUCH NEGOTIATED. THERE'S NO FINAL VERSION OF THIS. BUT IF YOU WANT YOUR PERSPECTIVE ON IT TO BE WEIGHED IN ON, YOU'RE GONNA NEED TO CONTACT THEM SOONER THAN LATER. >> AND YOU MENTIONED THIS COULD ACTUALLY BE DISCUSSED IN A SPECIAL SESSION. >> YEAH, THE GOVERNOR HAS SAID HE THINKS IT'S WORTHY OF A SPECIAL SESSION. ALL OF ITS OWN. NO DATE HAS BEEN SET FOR THAT YET. BUT TYPICALLY THOSE ARE FOR A WEEK OR MAYBE 2 WEEKS. SO I WOULD LOOK TO SEE THIS POSSIBLY HAPPEN LATER THIS SPRING. IT'S CERTAINLY VERY INTERESTING, ISN'T IT? YOU KNOW, THANK YOU FOR JOINING US AND EXPLAINING THIS SUPER IMPORTANT TOPIC. >> THANK YOU SO MUCH, MATT CALDWELL, COUNTY PROPERTY APPRAISER. ABSOLUTELY.