Thursday, August 16, 2007

Sarasota Landlords Revolt at Property Tax Over-ride

According to Rich Stover, Sarasota Realtor, Sarasota landlords are incensed that Sarasota Commissioners circumvented the Florida State Legislature's initiative to hold down property taxes. In response the Sarasota landlords association has started a petition drive to "recall" the members of the Sarasota Commission. The landlord association's 500+ members control roughly 5,000 units in Sarasota County.


The change to Florida property tax law included an "override button" allowing local commissioners to "override" the property tax rollbacks and caps. The Sarasota commissioners voted on July 19th to enact that override provision. The Sarasota commissioners are, so far, the only group to have "pushed the override button." The commissioners approved a property tax rate slightly below the city's current rate of 2.9022 mills, above the 2.5849 set for the city in the new legislation.


The sentiments of the Sarasota area landlords echo the feelings of many small businesses as well as Florida snowbirds about the recent property tax changes. They see the new law as a tax break only for those already getting the biggest break; Florida's homesteaded property owners.



According to the Sarasota Herald Tribune, Kurt Wenner, research analyst said, "Landlords have been getting hammered. So have small businesses, snowbirds, and anybody who owns any non-homesteaded property. The Florida "Save Our Homes" constitutional amendment, which caps property tax increases for homesteaders, has put the burden of spiraling taxes on the back of non-homesteaders."


A Sarasota Commissioners' spokesperson said board members did their best to trim the budget before overriding the Legislature's spending cap. "I thought we were as even handed as we could be," he said.


The man leading the recall effort, Harvey Vengroff, owns 1,400 units in Sarasota and Manatee counties. The Sarasota Herald Tribune reported Vengroff as saying,"They aren't doing anything for people who rent, and those are the people who need it more than homeowners, aren't they?"

Landlords may be unhappy, but removing public officials from office by recall is nearly impossible. "Voting in a way that citizens disagree with isn't a legal basis for a recall," said Bob Fournier, Sarasota's city attorney.

Kathy Beavers, another Sarasota Realtor, feels that the biggest impact of this action by Sarasota landlords may be that it will crystalize what many non-homesteaded property owners have felt for some time; while something must be done to hold down Florida property taxes, it won't be easy and its effects will be felt unevenly.

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