There are many new business models in the real estate business. There are companies offering home buyer rebates, others offering to list your home for a flat fee, some offering to do both, others yet offering some form of the previous options but only online and still others offering services at reduced commissions. There are options galore and most consumers are probably confused and wary of anything different. The Department of Justice (DOJ) created a web site titled, Competition and Real Estate which goes into much more detail than I can here and explains the many new business models and options available to consumers. Read the rest of this entry »

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Florida’s property tax system is in need of fixing and since the previous post on this subject the plan to fix it has changed. The current tax system and the proposed system both create two classes of taxpayers by shifting the tax burden to non-homesteaded property owners. For those of us that are long time residents this may sound like a good idea but in reality this may end up hurting everyone by depressing an already depressed real estate market.

On October 29, 2007, the legislature concluded Special Session D to deal with property tax reform and presented its plan, which includes:

• Ensuring Save Our Homes portability, up to $500,000 (reduced from $1 million)
• Doubling the $25,000 homestead exemption
• Tangible personal property exemption of $25,000 for businesses
• 10% cap on assessments for non-homestead property

The plan is explained in detail by Florida Tax Watch in their memo titled “What the Special Session D Did”. I suggest you all keep an eye on this site and the Florida Tax Watch site for updates and more detailed info. Voters must still decide if they want to accept the new plan in January so be sure you understand what you’re voting for.

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As many of you may already of heard there are changes coming to your property tax bill and how it’s calculated. The bottom line being that we should all see a cut in taxes. The cuts are a two step process with the first step being an across the board cut which should save most homeowners around $174 give or take this year. The second step is a proposed constitutional amendment to be voted on this January. This amendment would create a super-homestead exemption replacing the current $25,000 exemption and Save Our Homes which capped the increase in property taxes for homesteaded property to 3%. The new exemption would be 75% of the first $200,000 in value and 15% of the next $300,000 for a maximum of $195,000 and a minimum of $50,000 ($100,000 for low-income seniors.) Going forward this $500,000 ($200K + $300K) number will increase by the change in per capita personal income in Florida.

Current homesteaders will be able to make an irrevocable, one-time decision to take this new super exemption or keep the current Save Our Homes cap. Once you move you’ll only have the new exemption.

For more information and to follow developments I suggest you read the following brief from Florida Tax Watch, What the 2007 Legislature Did and visit the Florida Tax Watch web site for updates.

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