Progress Energy Doesn't Pay Property Tax

It must be nice to be Progress Energy. Progress Energy is withholding payment on property taxes owed to Citrus County, Florida.

Monday, Progress Energy paid $19 million toward its $35 million property tax bill. The company feels the property appraiser did not fairly value some pollution control equipment, two aging coal-fired power plants and a damaged and idle nuclear power plant.

In fairness, Progress Energy may have a valid case. That doesn't give Progress Energy the right to just refuse to pay property taxes. Imagine if you refused to pay the full extent of your property taxes. You would likely be looking at jail time. This is forcing Citrus County to cut essential services.

Citrus County Sheriff Jeffrey Dawsy pulled told said 30 law enforcement members may be laid off. Two fire stations are facing possible closing.

"That to me is grave," Dawsy told a news conference, "The citizens of this community, if they didn't care about fire or law enforcement, should be outraged that their safety is now in danger."

Dawsy said he is voiding contracts with Progress Energy to assist the company in emergency services. Progress Energy has a damaged power plant. This is troublesome.

I'm amazed that Progress Energy constantly gets the state to approve rate hikes on cunsumers. When it is time for Progress Energy to pay they stiff on their bill.

Mike Fasano On Utility Rate Increases

Along with Paula Dockery, Mike Fasano is one of the few rationale Republican voices in the Florida Senate. Fasano wrote a letter to North Carolina Gov. Bev Purdue and the NC state legislature. Fasano is urging North Carolina elected leaders to repeal Senate Bill 3. The legislation allowed power companies to increase rates for the construction of nuclear new power plants. With the exception of nuclear power and rate increases, Senate Bill 3 has good things in it about about clean air and using environmentally friendly alternative sources of energy. It looks progressive compared to what comes out of the Florida legislature.

Fasano voted to allow Progress Energy and Florida Power & Light to raise rates. Fasano now admits he made a mistake. That is a rarity in politics.

Allowing utilities to charge customers for new power plant construction work in progress will hurt already strapped customers with possibily large increases in their electricity bills. According to Progress Energy filings with the Florida Public Service Commission, the average Progress customer could see an estimated increase of nearly $50 per month by 2020 from the Levy capital additions.

Because of my deep concern about these impacts on consumers, I am the primary sponsor of FL Senate Bill 200 to repeal provisions relating to cost recovery for siting, design, licencing, and construction of new nuclear and integrated gasification combined cycle power plants.

Quote of the Day

"Well my friends, let me tell you that I have an issue with believing what Republicans say. They also said they weren’t going to raise our taxes. And yet we walked out of session a couple years ago with $2 billion in new taxes. So I have trouble believing them."

"To me, the pledges that the Republicans have taken are written on toilet paper. And we all know what you can do with toilet paper."

Franklin Sands, Florida House Democratic Leader

Sands was referring to incoming House Speaker Dean Cannon's promise that he will abandon his attempt to lift the offshore drilling ban. As I noted before, Cannon's campaigns have mostly been paid for by lobbyist money. Follow the Money shows Cannon is a lobbyist's best friend. Cannon raised $68,900 from individuals and $198,779 from institutions. Progress Energy and Florida Power & Light are major contributors. I have a hard time believing that Cannon will forget the energy industry that helped put him in office.

Expensive Homes Pay Less Property Taxes

The Orlando Sentinel and South Florida Sun-Sentinel found that under the current property tax and tax relief proposal back by Marco Rubio have one thing in common. The wealthy get bigger tax breaks.

A South Florida Sun-Sentinel analysis of property records shows owners of palatial estates and waterfront mansions pay taxes on less than half of their home value. However, the owners of the most modest homes and condos are taxed on two-thirds of their home value.

Former football star Dan Marino, auto dealer Rick Case and JM Family Enterprises founder Jim Moran are among the biggest beneficiaries. Others include Swap Shop owner Preston Henn, local real estate investor M. Austin Forman and former Philadelphia 76ers basketball team owner Harold Katz.

According to property appraiser Joe Zdanowicz, the reason for the difference is so expensive homes can increase in value.

"If I have a single-family property off West Davie Boulevard in a nice neighborhood, it may be nice but the appreciation is not going to be as high as a property on the Intracoastal Waterway," Zdanowicz said.

Attorney Bob Montgomery is candid enough to know he is getting a good deal on his Palm Beach County home.

Celebrities such as radio personality Rush Limbaugh, golfer Jack Nicklaus and Tampa Bay Buccaneers owner Malcolm Glazer are among those with the biggest savings.

"I love it, obviously," said attorney Bob Montgomery, who saves $265,000 in annual taxes on his $24 million Palm Beach mansion. He still pays $173,000 in property taxes per year.

"I pay it with a sigh of a relief and a thanks to the heavens," Montgomery added.

The Orlando Sentinel analysis found that the biggest beneficiaries of of the Florida House rollbacks would be Disney, the Marriott and Progress Energy. A homeowner whose property is appraised at $300,000 would receive a $400 tax savings.