I am sure that most of you have already heard about the TURNING POINT FOR FLORIDA TAX HOMESTEAD POLICY, but in case your week was as crazy busy as mine, I will share the details and the implications of the policy with you now. The details are factual. The implications are my own thoughts as a REAL ESTATE PROFESSIONAL:)
This week, the Florida House passed House Joint Resolution 203 (HJR 203). This constitutional amendment proposal would dramatically expand the homestead tax exemption and ultimately phase out most property taxes on primary residences if passed into law and approved by voters.
This law would eliminate non-school property taxes on homesteaded homes. These include all taxes that fund county and city services such as fire, police, parks and infrastructure.
The proposed “phase out” is not an all or nothing. It would start in 2027 by increasing the homestead exemption for non-school taxes by $100,000 each year for 10 years…essentially, allowing for a MAXIMUM HOMESTEAD EXEMPTION ON $1,000,000.
What does that mean for Seven Isles? (my thoughts here!!)
This would be consequential on the values of our homes. But because we are in a high priced real estate enclave, the tax savings will not be as consequential as in a lower priced area. Still, because of this incentive, I anticipate that many people from higher taxed areas like New York and California will finally decide to make the move to our shores. And, as we all learned in Economics 101 in undergrad, this will increase the values on our properties, simply by increasing the demand for Florida Real Estate.
The homes in our neighborhood that have the most to gain are the older homes, whose value is now calculated to be around $2,800,000 to $3,200,000 depending on the lot AND those who are already homesteaded in more expensive real estate. Over the next 10 years, the tax savings will max out at approximately $20,000. That is quite a substantial amount for most real estate, but unfortunately, just a drop in the bucket for trophy properties.
Still, the PERCEPTION that the taxes will be reduced for all (and they will be, but for some, it will not make a big difference), should increase demand throughout the state, thereby increasing values for all.
If you share my thoughts, or have others of your own with regard to this, please share with me. I love to engage and learn with and from others.
PS. I would also love to represent you with regard to anything real estate related, either in Seven Isles, or in the Tri County area.
Stay tuned for next month’s article or email me at DonnaZalter@gmail.com or Donna.Zalter@compass.com
Donna