Poorly vetted tax cut helps rich, hurts the rest

The state House wants to give Floridians a dose of pretty-looking poison, bottled as a massive tax cut and dangled before voters on the November ballot.

House Republicans passed a proposed constitutional amendment (HJR 203) that would — if 60% of voters approve — eliminate non-school property taxes on about half of Florida homes in 2027. For most cities in Broward and Palm Beach counties, it is a slow-motion fiscal catastrophe.

Such a massive tax cut superficially sounds good, so many uninformed voters are likely to vote yes. The appeal is obvious to people burdened by ever-rising insurance premiums and paying more for everything from eggs to pickup trucks. Single-family homeowners who would benefit the most are also the ones most likely to vote. The measure also could benefit from “aspirational voting” by people still chasing the elusive dream of home ownership.

For those who don’t yet own a home but vote for this ballot measure, the effects would be especially cruel. If cities and counties raise other taxes or fees to cover some of the estimated $18.3 billion they will lose annually, they will burden low-income Floridians who are renters. Also pinched would be small businesses that create most new jobs in Florida.

This assumes that local governments will shift the tax burden and try to keep tax revenues stable to keep parks open and garbage trucks on the road. Many county and city commissioners will probably first opt to power through their reserves, those “rainy day funds” set aside for disasters. Now, that money may have to cover a disaster that was entirely man-made.

The unkindest cuts

Next, they will look first for places to cut, and that could get ugly fast. The problem is this: Most people don’t really understand what local property taxes pay for — both directly, as city or county functions, and indirectly, as grants to community organizations that provide a wide range of services. Local communities even pick up a portion of bigger expenses such as Medicaid coverage for low income families.

So where will local officials look for cuts? Expect them to start with things many people consider “extras” — sports programs, community festivals, libraries and environmental preservation. In communities like Parkland and Cooper City, where the largest percentage of the tax base is residential, the impacts will hit the hardest.

One area walled off from service cuts is public safety, the biggest cost-driver for cities and counties. A clause in the proposed amendment would force them to fund police, fire-rescue and first responders at current budget levels, which creates another budgeting trap.

In the House’s party-line vote of 80-30, Republicans cast every yes vote but one, and Democrats cast every no vote. The one House Democrat voting for this ruinous legislation was freshman Rep. Leonard Spencer of Orange County. He said he thinks it will benefit residents of his district, which includes most Walt Disney World properties.

He’s partly right. It will be a massive tax windfall for the millionaires, living in their gated splendor.

If the owners of an estate near Windermere, the priciest home in Orange County when it sold for $32 million in 2023, were to claim homestead, their tax break would be $273,322.

Renters everywhere, beware

But for low-wage workers in Broward and Palm Beach counties who wait tables and clean hotel rooms, living three or more in an overly expensive two-bedroom rental unit? Not so much.

Their rent will go up when their landlords’ tax bills do too.

Still, it’s too soon to panic. The House tax cut bill, HJR 203, lacks a Senate companion.

Senators, less impulsive by nature and treading cautiously, plan to address property taxes in a special session DeSantis plans to call in late spring. But the House’s aggressive first step was clearly designed to raise public expectations for the final product.

Until then, the best Floridians can do is let lawmakers know that they understand basic math and the cruel calculation behind this reckless legislation.

This will be a long, mostly uphill fight, and there’s reason to worry. If lawmakers aren’t careful (and right now, they are being the opposite) any tax-cut legislation will hurt far more than it will help.

The Sun Sentinel Editorial Board consists of Opinion Editor Steve Bousquet, Deputy Opinion Editor Dan Sweeney, editorial writers Pat Beall and Martin Dyckman, and Executive Editor Gretchen Day-Bryant. To contact us, email at letters@sun-sentinel.com.