Florida voters approve property tax cut amendment

By Michael Peltier

TALLAHASSEE, Florida (Reuters) - Florida voters on Tuesday approved a property tax reform plan that may cut local taxes by $9.3 billion over the next five years, a proposal heavily promoted by Republican Gov. Charlie Crist.

With 76 percent of the precincts counted, the state constitutional amendment to increase exemptions on primary residences and expand a popular tax cap had 64 percent approval, according to the Florida Division of Elections, surpassing the 60 percent threshold needed.

"The people wanted a property tax cut and that is what they got," Crist told Reuters on Tuesday night.

Local governments, education officials and unions had called the savings estimates overblown and said the proposal would jeopardize public school funding and essential local services financed through local property taxes.

"The counties will do their very best to listen to the voice of their constituents and respect their decision," said Cragin Mosteller, spokeswoman for the Florida Association of Counties.

The group did not take a stand on the measure but many of its members opposed it.

"It's going to be quite a challenge for them to look at their budgets because it is going to be a very tight year," Mosteller said.

Backers of the proposal, a coalition of business groups and Realtors, said it was only a first step in more systemic reform.