Real Estate News Articles related to Property Taxes
Property tax debate heads to campaign trail TALLAHASSEE, Fla. (AP) – June 18, 2007 – Now that the Florida Legislature has finished its part on property tax relief, it’s up to voters to figure out whether to adopt a proposed state constitutional amendment. The referendum will be part of the Jan. 29 presidential primary election. The Republican-sponsored amendment is half of a two-part, multibillion-dollar tax-cutting plan lawmakers passed during a special session Thursday. Among the amendment’s critics are hard-core tax protesters who say it doesn’t cut enough. Other opponents, including Democrats, local officials and labor unions, argue it would cut too much from city, county and public school budgets. Critics on both sides of the size spectrum, though, agree on one point. They say the amendment would provide tax relief mostly to those who least need it – owners of primary homes, known as homesteads. “Tax relief needs to be provided to those who are paying taxes,” said Dr. David McKalip, a St. Petersburg neurosurgeon who heads the Florida Taxpayers Alliance, which is leaning toward opposing it. McKalip said Friday that it does nothing for owners of businesses, second homes and rental properties who have been among the hardest hit by soaring property taxes. On the other side are Gov. Charlie Crist, House Speaker Marco Rubio, of West Miami, and other Republican politicians who will be campaigning for the amendment. They argue it would begin to alleviate inequities in the tax system as well as offer relief to homeowners. “The voice of the people has brought us to this point,” Crist said. “I don’t think you have to do a whole lot of selling to convince them they’d like to have their taxes cut.” The amendment, if approved by at least 60 percent of voters, would give homesteaders a choice of tax breaks. They could keep their benefits under the Save Our Homes Amendment, which caps annual assessment increases on homesteads, or a new “super exemption.” It would exempt 75 percent of the first $200,000 of a home’s value and 15 percent of the next $300,000. For example, a homestead valued at $100,000 would be taxed on $25,000 and one at $200,000 on $50,000. A $400,000 home would be taxed on $220,000 while a $1 million house would be taxed on $805,000. Also, any home valued at $50,000 or less would be totally exempt – $100,000 if owned by a low-income senior 65 or older. “I’d have to do the math because Save Our Homes has worked so well for us,” said Jack Phillips, 72, a retired metallurgy technologist from St. Petersburg. Phillips, who was visiting Tallahassee, said having a choice makes it more likely he will vote for the amendment. “If I had no choice I wouldn’t vote for it,” he said. Some Republicans say adding choice will help the amendment pass, but House Democratic Leader Dan Gelber, of Miami Beach, said it will just add to voter confusion. He said even experts, much less the average homeowner, cannot figure out which tax break would be better in the long run because future housing market conditions are so uncertain. “You are going to have to play deal or no deal,” Gelber said. “Some of them are going to make the wrong call, and they are going to be very upset.” Homeowners could keep Save Our Homes as long as they want, but once they choose the super exemption they would be unable to go back. Barbara Garcia, 41, said at a Miami grocery store that she’ll vote against the amendment because she’s worried about losing public services. “I was all for it until I heard what effects it might have,” she said. “I’ll just deal with having to pay more property taxes. That’s fine, it’s Florida.” Miami homeowner Carlos Vega, 42, said that won’t stop him from voting for the amendment. “Any time you can cut taxes, I’m all for it,” he said. “There’s always going to have to be sacrifices.” Although Democrats opposed the amendment, which narrowly passed in both chambers, they were nearly unanimous in favor of the other part of the plan, a bill providing across-the-board cuts for all taxpayers. That measure, which does not require voter approval, would roll back taxes levied by cities, counties and special districts, but not school boards, and then cap them with allowances for new construction and personal income growth. The first-year estimated savings are $174 for homesteads, $199 for non-homestead residential properties and $941 for commercial and industrial. The bill could save taxpayers an estimated $15.6 billion over five years. The choice provision makes it impossible to put a dollar figure on the amendment, but if half of homesteaders opted for the super exemption it would be about $8 billion. While lawmakers have hailed the plan, with or without the amendment, as the largest tax cut in Florida’s history, tax protester McKalip said that’s still not enough. “They gave us a token,” he said. “It’s designed to declare victory and get people re-elected.” |
|||||||||||
| After
the Florida Legislature passed its tax bill last week, brokers
go to work MIAMI – June 18, 2007 – Within an hour after the Florida Legislature passed its tax bill Thursday evening, Mark Zilbert went to work. The South Beach real estate broker sent an e-mail blast to 50,000 potential buyers with the tax changes – and condominiums for sale. Like most in the housing industry, Zilbert had been eagerly waiting for something – anything – to inject new life into a frozen real estate market. The Legislature’s tax rollback could spur a little action by giving home shoppers a bit more money and a psychological boost. But the waiting is far from over: Many buyers are likely to sit on the sidelines until voters decide whether to approve a big tax exemption in January. “What buyers and sellers are starving to see is something being done about taxes,” said Zilbert, who said he had 300 e-mail responses by Friday morning. “Not everyone is convinced they will see big changes. Yet this is finally being dealt with, and for many, that is all it takes.” The reforms passed Thursday may prompt some buyers to think harder about taking the plunge. For more than a year, Adam Lubkin, 38, a renter in Miami, has considered buying a home in Fort Lauderdale to be closer to his parents. He waited during the tax debate in Tallahassee and is still not sure, but he’s more positive than before. “I think it will have to shake out a little bit,” said Lubkin, who is in real estate development. “But did Thursday’s decision move me in the direction to buy a house? Absolutely.” Turning renters into buyers would be significant, said Ronald Shuffield, president of a Real Estate Firm, which sells homes in Miami-Dade and Broward counties. He said that while sales have gone down, rentals through the multiple-listing service have actually increased 29 percent over the past year in Miami-Dade. “That says to me we have a lot of people still here,” Shuffield said. Wait and see However, the wait-and-see attitude among some buyers is likely to continue until January, when voters decide whether to approve a system that offers the choice between Save Our Homes caps or a new super-sized tax exemption for homeowners. “The real bad slump in the home resale market and the new home market will likely remain flat through the end of the year,” said real estate analyst Jack Winston of Miami. If the proposal passes in January, the super-sized tax exemption may reduce the sticker shock that prompted many prospective buyers to walk away after tallying up the home price, insurance costs and taxes. The exemption of 75 percent on the first $200,000 and 15 percent on the next $300,000 may give first-time homebuyers a better chance to get into the market. It also could budge some homeowners who were reluctant to move up before because of the prospect of a significantly higher tax bill. But even if voters say yes in January, it’s unclear how far the changes to the market will go. Peter Zalewski, a real estate advisor who offers buyers distressed property, said the super-sized exemption may bring a burst of activity, but not for long. “Ultimately, there are too many units and not enough buyers, and not even a tax break will change that,” he said. The broader market still faces a host of problems. There’s an affordability gap, with many buyers still priced out. Banks are tightening lending standards after giving out mortgages too freely. Insurance rates remain high for many homeowners. And there is still a mountain of homes on the market looking for a buyer. In the past year, the number of homes listed for sale in Miami-Dade and Broward counties increased from 50,000 to more than 75,000. Meanwhile, the vacation- and second-home sector – a big part of South Florida’s housing market – were largely left out of the tax breaks passed by the Legislature. Florida is the largest vacation home market in the country, according to the U.S. Census. Not enough Some say the reform package, even if the January vote passes, doesn’t go far enough. “It’s not enough to impact our housing market,” said Silvio Cardoso, president of the Builders Association of South Florida, who favored a rollback in property taxes to 2001 levels. “I think the market will continue to be very dead for a while.” But the industry is keeping its fingers crossed. “This is a good start,” said Gus Rubio, a broker in Miami-Dade. “We’ll see what happens.” |
|||||||||||
Florida’s existing home sales, median price down in April 2007 ORLANDO, Fla. – May 25, 2007 – Florida’s existing home sales
remained soft in April though the inventory of homes continued
to ease in many markets across the state, according to the
Florida Association of Realtors® (FAR). Statewide, sales of
single-family existing homes totaled 12,016 last month compared
to 16,283 homes sold in April 2006 for a 26 percent decrease.Florida’s median sales price for existing single-family homes in
April was $237,800; a year ago, it was $245,900 for a 3 percent
decrease. The median is the midpoint; half the homes sold for
more, half for less. In April 2002, the statewide median sales
price for single-family homes was $133,700, for an increase of
77.9 percent over the five-year-period, according to FAR
records.In March 2007, the national median sales price for existing single-family homes was $215,300, down 0.9 percent from the previous year, according to the National Association of Realtors® (NAR). In California, the statewide median resales price was $580,090 in March; in Massachusetts, it was $344,000; in Maryland, it was $302,750; and in New York, it was $248,000. Housing industry analysts anticipate that a decline in subprime mortgage loans, coupled with stricter lending standards, could impact housing activity in the coming months. According to NAR Senior Economist Lawrence Yun, one benefit for the market is the disappearance of speculative behavior, which contributed to abnormal price growth. “Homebuyers today are purchasing for the long-term, generally with a realistic expectation of modest gains over time,” Yun said in NAR’s latest market outlook. “It’s good that we’re getting beyond the tendency of some buyers to view housing as a temporary asset to accumulate short-term wealth, which is not to be expected in a normal market.” NAR predicts that existing home sales will increase gradually in the second half of 2007, with prices recovering a bit later. Sales of existing condominiums in Florida also decreased last month, with a total of 4,321 condos sold statewide compared to 5,344 in April 2006 for a 19 percent decline, according to FAR. The statewide median sales price for condos last month was $215,500, up 3 percent from April 2006’s condo median price of $210,000. NAR reported the national median existing condo price was $228,200 in March 2007. Last month, interest rates for a 30-year fixed-rate mortgage averaged 6.18 percent, according to Freddie Mac, a significant drop from the average rate of 6.51 percent in April 2006. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written. Among the state’s larger markets, the Sarasota-Bradenton Metropolitan Statistical Area (MSA) reported 796 existing homes sold last month compared to 685 homes sold a year ago for a 16 percent increase. The market's median sales price for homes was $294,800; it was $302,100 in April 2006 for a 2 percent decrease. A total of 333 existing condos changed hands in the MSA last month, up 11 percent from the 299 condos sold the previous year. The existing condo median sales price in April was $241,300; a year ago, it was $259,000 for a 7 percent decrease. People in the Sarasota area are getting the message that now is a great time to buy a home, says Joe Hembree, president of the Sarasota Association of Realtors and broker-owner of Hembree & Associates Inc. He points to the association’s promotional campaign “Time2Buy” as a positive medium for spreading the word to consumers. “Low interest rates, a great inventory of homes available and stabilizing prices are positive influences on our market,” he says. “The Sarasota area offers so many benefits for residents: beautiful beaches, a friendly community and great social atmosphere, world-class arts and entertainment. It’s a wonderful place to live and play.” Among the state’s smaller markets, the Gainesville MSA reported a total of 225 homes sold in April compared to 258 homes a year ago for a 13 percent decrease. The existing home median sales price was $214,200; a year ago, it was $204,200 for a 5 percent increase. A total of 74 existing condos sold in the MSA last month compared to 90 condos the previous April for a decrease of 18 percent. The market’s existing condo median price was $160,000; a year ago, it was $154,000 for a 4 percent increase. Sherry Patrick, president of the Gainesville Alachua County Association of Realtors and broker-associate with Coldwell Banker MM Parrish, says that the area’s stable economy provides a solid foundation for the housing market. “Having the University of Florida is a big plus for our economy,” she says. “The Gainesville area has a strong labor force and employment outlook, as well as a college-town atmosphere, educational opportunities and cultural activities to attract residents.” |
|||||||||||
|
More News click here |
|||||||||||