Florida's Property Tax Cut may be off ballot

By John Adams

Real Estate Agent with Adams, Cameron & Co. Realtors

September 25, 2007 07:29 AM

Today's news that the new property tax reduction may be off the ballot is unfortunate for those in the real estate industry and for those who are trying to sell property in the State. This adjustment is disapointing as it leave the so called Save Our Homes Ammendment (FL Ammendment 10) in full force. That will, of course, cause continued inequities for residential homeowners while disproporionately effecting businesses, second home owners, and renters. While this portion of the legislation would not have fixed the problem in the first few years, it would have helped over the long haul by very slowly elimintaing the inequities created by our current system.

The other interesting news is that the legislation that requires municipalities to offer tax cuts doesn't seem to be effected. We should continue to see overall tax reductions unless local government over rides those tax laws by a super majority.

http://video.nbc6.net/player/?id=160159

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Anonymous

Alex

I don't understand why Florida continues to punish investors, specu-flippers and rich second homeowners to pay its bills.

Let's revolt! I say tax the poor for a change. 50% tax on milk! $5K birthing tax for having kids! Wheelchair taxes and disabled permits to live in state.

Stop the exploitation of the much maligned 2nd homeowner and lets start regressing the burden a bit!

Sep 25, 2007 08:22 AM

Lisa Hill

Florida Property Experts - Daytona Beach, FL

Daytona Beach Real Estate

I can't believe it! You posted a blog! :P And I didn't know this was off the ballot. Why?

Sep 25, 2007 01:20 PM

John Adams

Oh, come on Lisa, it hasn't been THAT long!

They took it off the ballot because the short description (really the only one that anyone reads) didn't clearly identify that in the long run thiswould phase out Save Our Homes. In reality, even though this ammendment will protect the SOH exemption for the life of current residents or offer them the "Super Exemption" at thier option. However, because everone who is currently protected will eventually die or move, SOH will go away.

Each individual will have the option to continue under SOH or opt for the Super Exemption. In general, if you bought a house in Florida since 2003, you will almost definately be better off under the super exemption. Also, if your house is worth less than about $400,000 you will almost certainly be better off under the super exemption. However, if we can't get this on the ballot and get it voted in, you won't have the choice.

There are also long term effects vs. short term effects to be considered. Should I post an article trying to explain all that as well?

Sep 26, 2007 01:23 AM

Adams, Cameron & Co. Realtors - Ormond Beach, FL

ALEX - Interesting comments. You are correct that the new ammendment will provide more protection to homesteaded property owners. Clearly, that would be at the expense of second homeowners and investors. You missed busines owners, by the way. You also missed that the new super exemption is a huge help to the average homeowner and very much at the expense of the high end homeowner.

If your house is under $200,000, the average in our area, you would pay virtually nothing as you would have a 75% exemption. Someone in a $2,000,000 house, meanwhile, will have a less than 10% exemption. Further, there are even larger exemptions for seniors written in.

While I have written frequently about the need to stop the abusive tax on our job providers (business), our workforce (often renters), and our industry (second home owners), Im still in favor of this tax cut because of the limits on local spending. I don't agree that governemnt spending can be limited by the CPI but I do think that keeping spending down across the board will reduce everyone's taxes and eliminate the inequities we have in the current system.

Sep 26, 2007 01:32 AM

I think a longer post would be great. And I knew about the fact that we'd have to choose, so I assumed the original plan would be dropped once the choices had been made. But I can't believe they're going to drop the whole thing instead of just adding that to the short description.

Sep 26, 2007 05:04 AM

The legislature will have the opportunity to do that in a session next month. I'll update the blog as I hear more.

Sep 26, 2007 05:19 AM

Florida's Property Tax Cut may be off ballot

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