Indian River County senator takes lead for against tax referendum

Monday, May 19, 2008

By Jim Turner

Friday, May 16, 2008

TREASURE COAST — Instrumental in pushing forward the property tax reform voters approved earlier this year, State Sen. Mike Haridopolos is now taking the lead in gathering statewide opposition to an amendment that proposes to lower property tax bills by 25 percent.

The Senate Finance and Tax Committee chairman whose district covers most of Indian River County and a section of St. Lucie County west of Interstate 95, has starting talking with university presidents and groups such as Florida Tax Watch, and is establishing Protect Florida’s Future, which is to be a coalition of business groups and organizations across the state opposed to Amendment 5, which is on the Nov. 4 ballot.

Meanwhile, members of a number of unions and business groups on the Treasure Coast said they have yet to review the proposal that would swap the $9.5 billion in property taxes now collected by schools, replacing the money through sales and other consumption-based taxes.

“In the next couple of weeks I’ll be making my way across the state, answering questions about this proposal,” said the Indialantic Republican who was a strong proponent of the voter-approved Amendment 1 in January, which raised the homestead exemption and allows homesteaded property owners to take up to $500,000 in existing Save Our Homes tax savings to a new home.

“(Amendment 5) will be raising taxes and creating a lot of uncertainty in our business community and overall community,” Haridopolos said.

The property tax swap amendment will result in raised taxes because the proposal will only provide $7.4 billion in tax relief while mandating $11 billion in spending, he said.

Haridopolos believes a better solution would be to get the state Legislature or voters to approve a “taxpayer’s bill of rights” in 2009 that would cap government spending with the cost of living.

Because of his opposition to Amendment 5 during the recent legislative session, Haridopolos said he’s already been approached by groups representing tourism, restaurant, retail, schools, community colleges, accountants, and the advertising industry.

“Even labor unions say they can’t support this because it’s a regressive tax,” Haridopolos said of the amendment that former Bradenton Sen. John McKay championed to the Taxation and Budget Reform Commission.

Real estate and builders groups are expected to support Amendment 5, Haridopolos added.

Gail Kavanaugh, executive vice president of the Treasure Coast Builders Association, and Maria Fulchini, president of the Realtors Association of Indian River County, said neither organization has taken a stand on the amendment, but each expects it will be discussed.

“I haven’t heard anyone discuss it, but I’m sure it will come up,” Kavanaugh said.

With more than five months before the amendment goes before voters, a number of business groups and unions along the Treasure Coast said they have also yet to take a stance on the amendment, which is one of nine that will go before voters in November.

Rip Tosun, the immediate past chairman of the Florida Restaurant & Lodging Association and the owner of Rip’s — The Place for Ribs and Monte’s restaurant, both in Vero Beach, said the association has been reviewing the amendment and may consider taking a stand later this month.

Teacher’s union presidents Jeanette Phillips in Martin County and Vanessa Tillman in St. Lucie County expect the topic will arise this weekend when the Florida Educational Association meets in Orlando. And Joe Catrambone, president of the Stuart/Martin County Chamber of Commerce said the issue has yet to come before the chamber’s board.