Palm Beach Real Estate and Loans

Florida voters will have a chance to voice their opinions on a new Property Tax proposal in November of this year.

Several changes have already been made:

• The 'Save our Homes' benefit that current owners enjoy on their primary properties is now at least partially portable - making the purchase of a new primary within the state more attractive and...
• The doubling of the $25,000 exemption on homesteaded real estate to $50,000 (on the non-school taxes).

While any reduction in property tax on our Palm Beach real estate is welcome, the new proposal makes a much more drastic cut.

The new proposal includes the following:

• A 25% average reduction in property taxes on primary properties
• An adjustment to the cap on the annual possible assessment increase on 2nd homes and investment properties from 10% down to 5%. The 3% cap on primary homes would not be changed.

The 25% cut is huge and the money the state will 'loose' has been estimated at about $8 billion pre year.

It is estimated that slightly less then half of that could be made up by increasing sales tax from 6% to 7%.

One way of making up the rest would be to tax services - this is a possibility, but the rumor mill has already started reporting that is is definite. As of the writing of this article it is NOT.

Other ways of making up for the loss include getting rid of the exemptions on certain luxury items or just having the State cut out wasteful spending.

Decreases to the amount of property tax that Palm Beach real estate owners' pay every year are very necessary if we hope to stimulate the market.

Regardless of any other changes, the idea of paying less for property tax should give real estate activity in Florida a good kick in the right direction.