2006 Proposed property taxes

[iqueequeg]

You questioned whether it is right for homesteaders to pay less than non-homesteaders? Damn straight it is! Especially since we're the folks who have the vote and have to suffer 24/7 with the lunatics running the asylum up in Talla. There are other states with a more "equitable" property tax system for residents and investulators alike--maybe it would be a better choice to buy somewhere else...there's certainly plenty to chose from since it's a buyer's market in those states too.

Shelly seems to be making the case that a lower tax rate for homesteaders is equitable simply because residents have the political clout (via their vote) to make it happen (although then complains about the quality of the officials that are elected through that vote). He/she also obviously finds tourists and second homeowners annoying.

I?m sure Shelly will argue that if you don?t like it, you can lump it and leave the area. Indeed, I?m sure that between the break on homeowner?s insurance that year round residents receive, and the break on property taxes, many out of staters will do just that (sell). I think you?ll find, though, that those annoying people were supporting your roads, schools, and local services.

 

[ShallowsNole]

There's a break on homeowners' insurance?

Guys, I love all of you that have invested in Florida. I really do. However, if not for the Save Our Homes act vs the wild, assine, ludicrous jump in property values seen in SoWal two years ago, I would not have been able to keep my home. Even with homestead exemption, it is a stretch for us as our home was only built three years ago, and my homesteaded value is four times what my mother's value was on the same property when she passed away 15 years ago.

For a nonresident to tell me that the legal mechanism that allows me to keep my home, built on property that my father bought over sixty years ago (albeit waterfront), is unfair to them really raises my hackles.

(Edited - I was going to point out something else, but between my employment and my brother running for school board, I have to remember to be politically correct. )

 

[Smiling JOe]

There's a break on homeowners' insurance?

The break is on your primary residence -- you get to buy insurance, as opposed to some people who have second homes in the area, who are being dropped because their house is not their primary residence.

Come on ShallowsNole, don't hold back just to be political. Let it out. Be politically incorrect.

 

[dsilvar]

Come on ShallowsNole, don't hold back just to be political. Let it out. Be politically incorrect.

He did..and then erased it!! It was very interesting.
I wont repeat it but seems like a great idea.
Very interesting about North Walton county indeed.

 

[SHELLY]

However, if not for the Save Our Homes act vs the wild, assine, ludicrous jump in property values seen in SoWal two years ago, I would not have been able to keep my home.

For a nonresident to tell me that the legal mechanism that allows me to keep my home, built on property that my father bought over sixty years ago (albeit waterfront), is unfair to them really raises my hackles.

ShallowsNole hit the nail on the head.

If it wasn't for SOH, the Florida residents (young and old alike) who provide the manpower for the state's #1 industry (tourism) would have been flushed out of their homes over the last couple years by investulators who used lots, condos and houses like gambling chips.

I make no apologies for caring first and foremost about people whose primary homestead is at risk. It's not just the "little old lady" in the trailer....it's the nurse, the cop and the maid who cleans your condos.

When viewed by those folks making low-wage service jobs who only can <barely afford> ONE place to live, and are asked to pay more to help support someone's "investment" -- I guess "selfishness" is in the eye of the beholder.

 

[TooFarTampa]

ShallowsNole hit the nail on the head.

If it wasn't for SOH, the Florida residents (young and old alike) who provide the manpower for the state's #1 industry (tourism) would have been flushed out of their homes over the last couple years by investulators who used lots, condos and houses like gambling chips.

I make no apologies for caring first and foremost about people whose primary homestead is at risk. It's not just the "little old lady" in the trailer....it's the nurse, the cop and the maid who cleans your condos.

When viewed by those folks making low-wage service jobs who only can <barely afford> ONE place to live, and are asked to pay more to help support someone's "investment" -- I guess "selfishness" is in the eye of the beholder.

I agree wholeheartedly SHELLY. We read stories every day about schoolteachers and other middle-class folks who are truly getting squeezed, and may have to leave the state. It's appalling. While I do think the SOH cap is increasingly unfair to young people trying to buy a home and to good workers who want to relocate here, I would not want any rebalancing to affect nice people like ShallowsNole who just want to stay where they are. It is complex, which must be why nothing has been done yet. :roll:

I agree that non-homesteaders pretty much have to suck it up and deal when it comes to the property tax laws, but the fact that the law may soon no longer require Citizens to insure non-homesteaded properties is both outrageous and short-sighted. Such a move would not only force thousands of people into mortgage default, it would hurt tourism terribly because there would be fewer beach places to rent. That would mean fewer checks heading to the Walton County tax collector, right ;-) ? Everybody loses.

 

[John]

Re: Homestead Exemptions

A lot of folks around SoWal claim a homestead exemption when I know very well that they don't live here. If we disallowed these shenanigans then perhaps we could have a lower millage rate...

 

[iqueequeg]

There's a break on homeowners' insurance?

Recently passed stature SB 1980

http://www.namic.org/insbriefs/060515Florida.pdf

Long document, but my points about homeowner's insurance:

"Going forward, lawmakers also approved a new formula for handling future Citizens? deficits. If a deficit occurs in any Citizens account, an assessment (up to 10 percent) will be levied on non-homestead properties, and those funds will be used to offset the deficit. If that assessment proves insufficient,the Citizens board will be allowed to levy an additional assessment up to 10 percent on all Citizens policyholders. That assessment will be collected when a policy is issued or renewed. Any remaining deficit will be covered through a statewide Citizens assessment under current procedures."

and also:

"Citizens also should accrue some relief on the types of risks it insures because of a provision in SB 1980 dealing with high-end properties. Beginning July 1, 2008, any personal lines residential structure or single condominium unit that has a combined dwelling and content replacement value of $1 million or more will be no longer eligible for the HRA. On the same date, non-homestead properties,regardless of their insured value, also will no longer be covered in HRA. However, owners of both types of properties will be allowed to reapply for Citizens coverage if they sign a sworn statement acknowledging that they have been declined by one admitted carrier and three surplus lines carriers."


Look, no one wants people to lose their homes. If you want to argue that the tax system is regressive, and that there's no better way to make it a little progressive than to put extra taxes on expensive homes, that's fine and makes sense. But Shelly's argument that people with low wage jobs are paying excess (property) taxes to support other's investments is flat out wrong - the reverse is true. (It's social security and regular income tax that makes low wage people support the wealthy).

 

[Smiling JOe]

Re: Homestead Exemptions

A lot of folks around SoWal claim a homestead exemption when I know very well that they don't live here. If we disallowed these shenanigans then perhaps we could have a lower millage rate...

Not only do they minimize increasing assessed values, but they typically, also ditch taxes on the capital gains of their homesteaded (primary residence) when they sell it.

 

[SHELLY]

I agree that non-homesteaders pretty much have to suck it up and deal when it comes to the property tax laws, but the fact that the law may soon no longer require Citizens to insure non-homesteaded properties is both outrageous and short-sighted.

Citizens is also preparing to drop $1 million-plus homes, commercial properties (in some areas) and in-process construction from their roles as well. I understand they are attempting to set up separate insurance program for commercial properties which makes a lot of sense. Why should our <Florida icon> resident little old lady on fixed income help to subsidize commercial businesses on top of providing "10% kickers" when the funds run out? Ditto for mansions on the water, investment properties and developer's construction projects. A program dedicated to state residents only--properly priced based on actual risk--is the RIGHT way to go. All others should be broken out into a separate state-run insurance pool.