After a seemingly successful attempt to tackle the property insurance issue, legislators are now addressing the importance of dealing with the property taxes issues.Those property taxes reduction proposals will undoubtedly have a positive impact on a softer real estate market.
The newly elected Florida Governor Charlie Crist proposed to introduce a constitutional amendment Tuesday that would cut property taxes by almost $ 5 Billion dollars, therefore addressing a major issue voiced by Floridian tax payers. The proposed cut would bring the following changes:
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Homeowners would be allowed to "take" their property tax savings with them when they move to another home in
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Double homestead exemption allowing local governments to increase the current homestead exemption from $25,000 to $50,000.
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A cap the assessed value of non-homestead properties that would limit the tax growth rate to 3% or the rate of inflation, whichever is lower.
As a result, homeowner’s in the first year alone are expected to save over $200 million in property taxes. Tax savings are expected to be almost $1 billion by the fifth year. And businesses and renters, in the first yea, will save over $600 million in property taxes. By the fifth year, savings are expected to exceed $2.5 billion.
If passed these new tax and insurance reduction proposals are going to provide a great ease on Floridian’s which in turn will be a great stimulant for the local real estate market.
Published byMLR Realty contributor Eric Harari
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