Targeted Property Tax Reform: Designing a Circuit Breaker for Florida

Publication Date: October 2007

Publisher: Center on Budget and Policy Priorities (Washington, D.C.)

Author(s): Sarah Farkas; Iris J. Lav

Research Area: Banking and finance; Social conditions

Keywords: Economic projections; State budgets; Tax code; Income diversity

Type: Report

Coverage: Florida

Abstract:

Circuit breakers are programs that can significantly reduce the tax liability for individuals with high property taxes relative to their incomes. A circuit breaker could be used in Florida — possibly in conjunction with other property tax relief mechanisms — to ensure that low- and middle-income property owners and renters are protected from having to pay too great a proportion of their income in property taxes. A circuit breaker also would protect eligible households from experiencing property tax increases that they cannot afford. This paper models a proposed circuit breaker program for Florida. The circuit breaker is designed to provide property tax credits to up to 2.5 million Floridians while making administration simple and effective.