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Florida Sees Relief on Property Tax, Workers’ Comp Rates
Florida home owners who in recent years have been hammered by high property taxes and insurance costs will have the opportunity to give themselves some tax relief through a proposed constitutional amendment that will appear on the state’s presidential primary ballot on Jan. 29, the Florida Home Builders Association (FHBA) reported last week.
After intense wrangling, the Florida Legislature passed a $12 billion property tax relief plan late on Oct. 29 that lawmakers say will gain public support and help jump-start the state’s economy.
The measure will allow primary home owners to transfer benefits from a “Save Our Homes” 3% assessment cap on their properties when they move; double the existing $25,000 homestead exemption for homes valued at more than $50,000; and set a 10% annual assessment cap for properties such as businesses and second homes.
While the plan is not as strong as the Florida House had pushed for, David Hart, vice president of legislative affairs for the Florida builders, said that the members of his association should be encouraged that they will have an opportunity to vote on needed property tax relief at the start of next year. “However, this package is only a first step toward real reform and our industry recognizes that much more work is needed,” he said.
$700 Million Savings in Workers’ Comp Costs
Florida builders also received some good news last week from the Florida Insurance Commissioner, who ordered the National Council on Compensation Insurance to reduce workers’ compensation rates by 18.4%, FHBA reported. The rate reduction should provide a $700 million savings to the state’s employers.
“Prior to legislative reforms, Florida consistently ranked No. 1 or No. 2 in the country for the highest workers’ compensation rates,” said FHBA President Robert Parrish. “However, with workers’ compensation reforms — which FHBA was instrumental in helping to achieve — Florida has dropped out of the top 10 rankings. The latest reduction could drop Florida into the mid-20s, depending on rate changes in other states.”
The 18.4% rate reduction will be the fifth consecutive drop since the legislature passed workers’ compensation reforms, Parrish said, and will lead to a cumulative overall statewide average rate decrease of more than 50% since 2003.
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