13 May 12 Florida’s Amendment 4 Will Help First-time Home Buyers
Advocates of Florida’s Constitutional Amendment (Amendment 4), which decreases property taxes, are suggesting that Florida home owners and renters vote “Yes” on Amendment 4 in November. Neglecting to do so may well subject them to run the risk of getting their “assets taxed off.”
Equating rising real estate property taxes in a downwards housing market as “Sudden Posterior Reduction Syndrome” (or getting your assets taxed off), the Taxpayers First PAC will be moving for an Amendment that will stop real estate property tax hikes any time home values drop.
In a Youtube video clip, Taxpayers First asks voters to embrace and support Amendment 4 at the polls in the Fall. This parody commercial provides a talk show host meeting with a physician about Sudden Posterior Reduction Syndrome.
“I first noticed on a patient around the onset of the recession,” says an actor called Dr. Stanton Robinson. “The value of his home went down, but his property taxes went up.”
“That sounds really serious,” the talk show host responds.
Along with suspending the so-called, “recapture rule”, Amendment 4 offers an added homestead exemption for new home buyers. This extra property tax exemption would be valid for approximately 5 years.
In all probability it might result in diminished cash flow for local governments, which have needed to come up with significant reductions to manage revenue deficits. Nonetheless, for people who own property, or want to buy soon, it may decrease their costs considerably.
Amendment 4 is among the numerous constitutional amendments on November’s ballot which seek to decrease taxes. The additional amendments concerning real estate tax breaks include those intended for widows of armed forces veterans as well as widows of law enforcement officers.
Even though the specific terminology and wording of the amendment hasn’t been completed, it should have two primary improvements to the current tax code:
An increase for the homestead exemption for first-time homeowners from $50,000 to 50% of the home’s value (as much as the median selling price in the county) for the initial 5 years.
Reducing the cap on property taxes for non-homestead properties such as: second houses, investment properties, commercial properties as well as small companies.
The present annual property tax increase for investment/commercial properties is up to 10% annually. This new limit would reduce property tax increases to 5% per year. That new 5% limit should practically supply equality with the existing 3% cap on primary residences that have the homestead exemption. This is important to renters too. Any time the majority of land lords deal with a property tax increase, that cost is passed on to the tenants through increasing the rent payments. Decreasing a landlord’s taxes may well reduce rent increases.
Proponents of the amendment are convinced that decreasing taxes may increase property sales and promote business activity. Florida has a massive amount of unsold real estate on the market today. By making such real estate properties more affordable to acquire and sustain, it’s predicted that Florida’s substantial inventory will decrease and also the cost of properties may once again go up.
Before you make any decisions on buying real estate, make sure you read Charles Denett’s free report on Tampa homes for sale, and first time home buying.
Tags: amendment 4, Finance, Florida, florida amendment 4, florida property taxes, Home Buying, property taxes, Real Estate, tampa real estate, taxes, vote
