HJR 33 CS - Homestead Property Assessments

HJR 33 CS - Homestead Property Assessments
JOINT RESOLUTION by Domino (CO-SPONSORS) Allen; Altman; Brandenburg; Clarke; Glorioso; Goldstein; Harrell; Hasner; Johnson; Kottkamp; Kreegel; Porth; Proctor; Rice; Rivera; Robaina; Sands; Sorensen; Taylor; RECOMMENDED by Local Government Council

Homestead Property Assessments: Proposing an amendment to s. 4, Art. VII of the State Constitution to provide for assessing at less than just value property purchased within one year after a sale of homestead property and established as new homestead property, prohibiting the difference between the new homestead property’s just value and its assessed value in the first year the homestead is established from exceeding the difference between the previous homestead property’s just value and its assessed value in the year of sale, requiring the new homestead property’s assessed value to equal or exceed the previous homestead property’s assessed value, and authorizing an exemption from such less-than-just-value assessments for homestead property in a fiscally constrained county subject to voter referendum approval no earlier than November 1, 2009.

Here is what the Tampa Tribune had to say…

It appears to me that Homebuyers, Home Inspectors, Home Builders & Realtors could come together on this legislation, over the next few years we could use this issue as a platform to build lasting strong relationships with other associations and groups. I hope the NACHI legislation committee will look into actively supporting this bill and use it as a way to promote our association and to open up lines of communication among other groups.

I sat in an Investors meeting last week. Those guys were ready to storm Tallahassee. You struggle to get insurance because the rates are high and climbing. You can’t afford to sell your house because the difference in taxes we pay now and the taxes you will pay are astronomical. You can’t buy a house because the increases in taxes increase your payments by $100 and up. It’s worse than buying a house with an adjustable mortgage. Investors can’t buy property because the taxes are too high and the renters can’t afford to pick up the slack. Meanwhile…just where in the hell are 900 people a day moving into the State going to live ? 80 people a day moving into the Tampa Bay area. They better fix this fast or this real estate market is going to flat out crash in Florida.

This will/should have no effect on investors whatsoever, this bill is only concerned with current existing full-time Florida residents who are eligible for the real estate homestead tax exemption on their personal residence.

In theory it would allow residents to carry their current exemption over to a new property. As an example, 5-years ago a house was purchased for $150K, and over that 5-years it appreciated to $300K. If the house was sold at $300K and another purchased for $300K in the same year the taxes would stay the same if the residents remain eligible for the homestead program.

Currently real estate taxes on houses that are eligible for the homestead exemption can only rise 3% regardless of the assessed value. This bill would allow those eligible to transact into a comparable home without seeing a 100% increase in the real estate tax they are now currently paying.