REAL ESTATE TAX RELIEF MAY BE ON THE WAY IN FLORIDA
Help may be on the way for real estate buyers in Palm Beach Gardens and throughout Florida as the State Legislature begins considering property tax reform proposals.
Over the last few years as property values increased, so did property taxes. When a home is sold in Florida, the property tax reflects the level of the sales price. If the buyer is a resident and has filed for the homestead exemption, property tax increases are capped after the initial increase reflecting the sales price. If the buyer is not a resident, not homesteaded, is an investor with multiple properties or has commercial property, there is no homestead exemption and property taxes increase each year to reflect the market price of the property. Over the past few years, as we experienced double digit appreciation in property values, taxes soared for properties not protected by the homestead exemption.
Today, it is difficult and unreasonably expensive for people to move among communities because properties of similar market value can reflect very different tax bills. This has negatively impacted the real estate market in West Palm Beach and throughout the state.
The State Legislature has begun discussing ways to relieve current property tax policies that. The current plan under consideration would trade property tax bills for a 2.5 cent increase in sales tax. This proposal would benefit higher income, upscale property owners and hurt lower income individuals, owning less expensive homes with smaller tax bills or renters.
It is not clear whether this proposal will gain support in the Legislature, but it is gratifying to know that our state lawmakers are listening to our plea to deal with the property tax issue.
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