Comments On Florida Tax Reform Proposals
What would be the direct consequences if the tax reform is approved in January? Florida Property Tax Reform to go on ballot January 29.
Voters will have to approve by a 60% majority votes the property tax reform approved by the House and Senate, Monday October 29.
The trimmed down package will reduce the average homeowner tax by an estimated $220 per year.
This is accomplished by increasing the homestead exemption to $ 50,000, (however, this $ 25,000 increase does not include school taxes - which effectively brings the total effective exemption to only about $ 40,000).
The general opinion is that it will hardly jump start the stalled real estate market, but so far this is the only choice homeowners will have next January.
Take it or leave it.
So, we'll take the $ 220, or about $ 20 per mont.
We were promised that taxes would drop "like a rock".
Let's analyze what will be on the ballot.
A positive provision is the portability of the "save our homes" protection, albeit also truncated to a maximum of $ 500,000.
It will allow some people to move out of their homes, to upgrade or downgrade.
Even withthis reduction, it will undoubtedly be a factor on the market.
People"trapped" in their home for fear of losing their lower taxes status will have a good incentive.
However, buyers of these same homes will have to take the full impact of the newly assessed homes.
The losers: -Non-homesteaded owners, which will hardly see any difference.
-New home buyers, who will have to live with the $ 220 savings.
-Commercial properties owners who got nothing, but a small tax cut.
Consolation prize: 10% yearly cap on assessments increase for non-homesteaded properties, up from the previously 5% approved by the house.
Should we add that it's sounds like a ridiculous provision.
The tax reduction, if approved by the voters in January,will add up to the roll-back on property tax rolls previously approved by the legislature.
We all know, however, that cities have the authority to ignore this mandate by a special majority vote, as some have already done.
Anyway, the legislators kept their promise.
Property Tax will drop.
Like a pebble.
November 2008 will be another election day,and the possibility of a new voters participation is always a possibility.
Maybe this tax reform will just be a first step.
In all cases, Florida homeowners need all the relief they can get.
Voters will have to approve by a 60% majority votes the property tax reform approved by the House and Senate, Monday October 29.
The trimmed down package will reduce the average homeowner tax by an estimated $220 per year.
This is accomplished by increasing the homestead exemption to $ 50,000, (however, this $ 25,000 increase does not include school taxes - which effectively brings the total effective exemption to only about $ 40,000).
The general opinion is that it will hardly jump start the stalled real estate market, but so far this is the only choice homeowners will have next January.
Take it or leave it.
So, we'll take the $ 220, or about $ 20 per mont.
We were promised that taxes would drop "like a rock".
Let's analyze what will be on the ballot.
A positive provision is the portability of the "save our homes" protection, albeit also truncated to a maximum of $ 500,000.
It will allow some people to move out of their homes, to upgrade or downgrade.
Even withthis reduction, it will undoubtedly be a factor on the market.
People"trapped" in their home for fear of losing their lower taxes status will have a good incentive.
However, buyers of these same homes will have to take the full impact of the newly assessed homes.
The losers: -Non-homesteaded owners, which will hardly see any difference.
-New home buyers, who will have to live with the $ 220 savings.
-Commercial properties owners who got nothing, but a small tax cut.
Consolation prize: 10% yearly cap on assessments increase for non-homesteaded properties, up from the previously 5% approved by the house.
Should we add that it's sounds like a ridiculous provision.
The tax reduction, if approved by the voters in January,will add up to the roll-back on property tax rolls previously approved by the legislature.
We all know, however, that cities have the authority to ignore this mandate by a special majority vote, as some have already done.
Anyway, the legislators kept their promise.
Property Tax will drop.
Like a pebble.
November 2008 will be another election day,and the possibility of a new voters participation is always a possibility.
Maybe this tax reform will just be a first step.
In all cases, Florida homeowners need all the relief they can get.
Source...