Reply #55: Fla.: Trade property tax for sales tax [View All]

[54anickel]

http://www.businessweek.com/ap/financialnews/D8NE9PC80.htm

Florida voters would be able to abolish property taxes on primary homes and put caps on government revenues in exchange for adopting the nation's highest statewide sales tax under a plan proposed Wednesday by House Republican leaders.

A second part of the proposal is designed to reduce taxes by an average of nearly 20 percent for all property owners, although most of those savings would go to businesses. It would not require voter approval but could go into effect sooner.

House Speaker Marco Rubio, R-Miami, said a proposed constitutional amendment that would raise the statewide sales tax by 2.5 percentage points -- from 6 percent to 8.5 percent -- could go on the ballot later this year or at the 2008 general election.

California has the highest statewide sales tax at 7.25 percent including 1 percent that goes to local governments.

The amendment would eliminate all property taxes on homesteads -- a homeowner's primary residence. Average savings are estimated at $2,283 per house, but the actual amount would depend upon a home's current tax value.

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