Wednesday, June 6, 2007

News regarding property taxes in Florida!

I have some great news regarding property taxes in Florida! Apparently there have been some verbal negotiations between house and senate leaders that gives them an outline for a more comprehensive plan to be completed at the special session this month. Mark Rubio the House Speaker and Ken Pruitt the Senate President agreed to a basic outline that would address long term and short term needs.

This topic is in flux and it is a complicated one - I'm trying to make sense of it.

Short Term Solution

From what I understand the short term solution will cut taxes county by county (and municipality by municipality) commensurate with how much they increased over the last several years. Counties that had gigantic increases will have larger cuts, and counties that didn't increase taxes as much will have smaller cuts.

Long Term Solution

This piece really excites me. It will be a tiered super exemption. The first $100,000 will be 70% exempt, the next $100,000 will be 50% exempt "and so on" as the report reads. I'm not sure what the "and so on" part means but at least we know what the first $200,000 will look like. It sounds like this part is going to be put on the ballot in January during the presidential elections. If it is not approved, then the only way we could get tax relief would be by a 60% majority to amend the Constitution (from what I understand).

Effects on the Market

It's my opinion that these tax cuts will help stir the market as soon as this summer. Now is the time to buy because prices are still low. If you want to sell but don't have to - wait if you can because I expect there to be an upturn in the next few months.

Pamela Elsaadi, Director of Operations
SI Real Estate - Real Estate - In Every Way

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