Not sure how accurate the headline is, appears to be expanding homestead exemptions ($100,000 exempted for everyone, $250,000 for old people) rather than doing away with property taxes completely. No details about how much they will have to raise sales taxes by to make up the difference. Florida bill would eliminate all property taxes | WFLA TAMPA, Fla. (WFLA) — Florida lawmakers could eliminate all property tax and replace lost revenue through a consumption tax, according to the Florida Senate. House Bill 1371, originally filed on Jan. 5, exempted $100,000 of the value of real property from being taxed. Those over the age of 65 would be qualified to be exempted from property tax up to $250,000. Lawmakers would have to create rules, an application process, and documentation to prove age and property ownership. In a revised version of the bill filed on Feb. 1, it states that the Office of Program Policy Analysis and Government Accountability is to study what the impact would be of getting rid of all property tax and replacing that lost money through a consumption tax. They are to submit their findings to the President of the Senate and Speaker of the House Representatives by Feb. 1, 2025.
Although I'd likely personally benefit, it sounds like screwing over renters for the benefit homeowners.
I recently learned in my county after getting an unexpectedly high tax bill that apparently, while the percentage they can increase your taxable property value year-over-year is fixed, there is no limit on how much they can raise millage ... my point being that counties would likely up the millage to make up for any shortfall with the homes valued above $100,000K, commercial, vacant, rentals, and other non-homestead properties.
This seems to accomplish two shitty things. Shift the tax burden to poor/non property owners. And disincentive the elderly from ever putting their house on the market to allow someone younger to purchase it. Yay!
It would probably also cause property values to increase further, putting additional strain on homeowners insurance and first time homebuyers. I’m sure most old farts don’t care about first time homebuyers or renters, but they’re quick to bitch about insurance rates and inflation.
If home values increase it seems logical that insurance rates and property taxes would increase. In most cases you are insuring replacement cost on your homeowners insurance. It the value of the home goes from 200,000 to 300.000 it seems logical your insurance will go up 50%.
The value of the home might go up 50% but that doesn’t mean the cost to rebuild would also go up 50%.
$250,000 homestead exemption? Seems it would provide tremendous incentive for hordes of old people to move to Florida.
Sounds like a bill designed for boomers. Not surprised, everything being put into place right now favors boomers and their nesteggs.
That's exactly what it does. It will shift more of the tax burden from those most able to pay to those least able to pay. I own my home in Florida, so I would benefit from this, but I oppose it. It's bad policy.
Depending on what exactly the consumption tax is, it may also shift more of the burden towards visitors, tourists and part time snowbirds.
Depends on the construction cost. Several years ago the value of my house went up significantly within 1 year. Construction costs certainly didnt go up that much given the low inflation...this was pre COVID. Reason it went up is that less than a mile away they built 99 houses that cost a little over $1M.
I bought a small fixer upper for about 45k and have been doing a project a year on it. It now is worth about 250 but my assessed value because of save our homes is about 60k. My taxes are about 400 a year. Trying now how to figure out how to transfer ownership to my son without the taxes going up. lol
I for one can see right though this NEW consumption tax bill, and it has NO business even seeing DeSantis' desk. And if this is a Republican advocating for it they should be shown the door.
