Tax Law Could Energize South Florida Market

Tax Law Could Energize South Florida Market

(March 30, 2006) -- A proposed law in Florida, which has gained widespread support from real estate professionals, would allow property owners to take their lower tax bills with them when they move from one property to another within the state.

Florida homeowners currently get a $25,000 homestead exemption. And a Save Our Homes amendment, passed in 1992, limits the rise in taxable value on homes to 3 percent a year. But once residents move, they lose that 3 percent benefit. Property is reassessed every time it changes hands.

“We’re going to reach a point where people are not going to be able to afford to move,” Palm Beach County Property Appraiser Gary Nikolits told a seminar attended by about 100 real estate professionals.

Many residents say they can't afford to move up or even downsize because they would have to pay much higher taxes on their new properties. That reason often is cited for the slowdown in South Florida's housing market.

Nikolits told the group he prefers a cap of $250,000 so wealthy homeowners don't get out of having to pay their fair share of taxes.

Source: South Florida Sun-Sentinel, Paul Owers (03/30/2006)