Homes & Relocation Detail
Florida property tax cut
The Sunshine State's Legislature has approved a plan for a Florida property tax cut - stating that it would be the largest in state history, writes Jo-ann Hodgson
The plan to cut the Florida property tax addresses the state's housing slump, which has seen revenue collected from real estate transactions dip 25 per cent over the last year, causing overall revenue to fall for the first time since the 1970s.
"Florida property taxes rocketed after the hurricanes two and three years ago," says Jill Diamond from Clearsky, which builds and sells Florida property. "High taxes on Florida property have made it difficult for some owners to afford the running costs.
She continues: "The Florida property taxation system, unlike in the UK, does reflect the costs and so does go down as well as up. This is a positive factor. Most property owners understand the need to raise tax dollars for unexpected extremes such as hurricane damage, and all appreciate when those dollars have been utilised that their taxes can return to more normal levels, and not just stay high!"
Lawmakers said that the plan would save Florida property tax payers an average of $174 this year, and, if voters approve the constitutional amendment, $948 in 2008.
The Florida property tax cut is a two-part plan. The first piece would require cities and counties to roll back rates this autumn and impose a cap on future spending that local government bodies could override only with a supermajority. The second is a proposed constitutional amendment for a 'supersized' homestead exemption. It would shield from taxes 75 per cent of the first $200,000 in assessed property value, and 15 per cent of the next $300,000.
The vote on the amendment is scheduled for 29th January 2008 and if approved, it would take effect in November - the start of the next budget year for local governments.
A four bedroom re-sale Clearsky property (pictured) that has been on the market for over a year has recently dropped its asking price to $429,900 from over $550,000, including all fixtures, furniture, finishing's and rental bookings. The property is south-west facing, overlooks a lake within a golf complex and has a private heated pool with spa and two en-suites with jacuzzi styled baths.
"This current trend may prove to be a very positive position for new buyers of Florida property," says Diamond. "As property prices have dropped there is definitely an excellent opportunity for shrewd investors to grab a bargain."
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