2006 Proposed property taxes

[Smiling JOe]

All this talk of taxes on investment property and second or third homes has reminded me of something. Growing up, I was always under the assumption that beach homes were a luxury, which costs money. They were not considered investments, not much different than a person buying a Rolls Royce instead of a Ford LTD. It is a luxury. It seems that now, things have changed quite a bit. Beach homes may prove to be profitable over time, but let's face it, they are luxuries, not necessities, such as someone's primary residence.

Comments?

 

[SHELLY]

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...

You mean like the situation with Florida's Chief Legal Officer and Candidate for Govenor Charlie Crist?: Home Sweet Homestead

"Tax returns provided some of the information that allowed us to report Friday that Crist rents a high-rise Bayfront Tower condominium in St. Petersburg from a man who has taken the $25,000 tax break on the condo for three years, even though he doesn't live there.

Crist didn't know Compton has been taking the homestead exemption since 2003.

Crist also said he didn't know it was wrong to do that (it's called "rental of homestead to constitute abandonment," Florida Statute 196.061)."

 

[SHELLY]

On a personal note tho'..I really do like your take on things, Shelly, your dry sense of humor and width of knowledge. But there is something visceral about your reaction to "investulators in Florida" that eats at your soul. and that saddens me. Thats all bro'
Peace.

DS,

Please don't be sad I'm doing just swell ...Just remember, Bob sez the future will be bright. See, here comes the nurse with my medication.

The next beer to cry in is on me.
Cheers!

Your Friend, Shel

 

[Mango]

You mean like the situation with Florida's Chief Legal Officer and Candidate for Govenor Charlie Crist?: Home Sweet Homestead

"Tax returns provided some of the information that allowed us to report Friday that Crist rents a high-rise Bayfront Tower condominium in St. Petersburg from a man who has taken the $25,000 tax break on the condo for three years, even though he doesn't live there.

Crist didn't know Compton has been taking the homestead exemption since 2003.

Crist also said he didn't know it was wrong to do that (it's called "rental of homestead to constitute abandonment," Florida Statute 196.061)."

Here's another article on what Crist proposes for the insurance industry
Crist: Large Insurers Shouldn't Spin off Florida Companies

 

[spinDrAtl]

While 2nd homeowners and investors should pay more than those in a primary residence (which they do if they have no homestead exemption), any attempts 'stick it to the interlopers' as it were could backfire. Whether it is a primary home or not, a luxury or not, increasing taxes and insurance on those folks to unreasonable levels does not do anyone any good either. Many of the 2nd homeowners have owned in the area for a long time and are no more speculating that someone with a primary residence. They may have a reasonable mortgage and enough income to support the property, but if you tax everyone out of the market, which home do you think is going to go up for sale or into foreclosure? Not the primary residence, wherever it may be. And of course while that would not be as serious as someone losing their primary residence, a bunch of foreclosures/defaults/properties for sale doesn't help the local economy either.

Face it, the area is a tourist area and is supported to a great deal by 2nd homeowners and renters of those properties.

 

[TooFarTampa]

All this talk of taxes on investment property and second or third homes has reminded me of something. Growing up, I was always under the assumption that beach homes were a luxury, which costs money. They were not considered investments, not much different than a person buying a Rolls Royce instead of a Ford LTD. It is a luxury. It seems that now, things have changed quite a bit. Beach homes may prove to be profitable over time, but let's face it, they are luxuries, not necessities, such as someone's primary residence.

Comments?

Totally agree. Even if you consider it an investment, for many people in Florida, an investment IS a luxury.

SHELLY, I agree that a beach rental property being on Citizens does not have the same importance as our little old lady insuring her '50s ranch, but who is talking about subsidizing? Citizens is requiring itself to be actuarily sound by 2008. So what difference does it make whom they cover, as long as the rate is fair? They are just trying to get rid of policy holders, and I just would hate to see properties become truly uninsurable because of their status as a non-homesteaded property. Same with properties whose structures are valued at $1 million or more. If they can't get coverage on the private market (which is less and less available for such homes) and are happy to pay whatever is fair, why does it matter? I'm trying to imagine half of South Walton trying to procure coverage through Lloyds of London, and the idea is just appalling and seems unnecessary.

 

[ShallowsNole]

It's now after lunch and my blood sugar level is back up...so I'll go ahead and post what I think would be a swell idea in reference to Save Our Homes. It would impact those on fixed incomes some, but not much, and to me it seems more equitable.

Instead of exempting the the first $25K of the assessed value...I think it should be the second $25K that is exempted - between $25,000 and $50,000. In this manner, everyone pays something...and truly, property tax on a homestead valued at $25,000 isn't that much.

The politically incorrect comment involved some of my inlaws in North Walton, and they are really, truly good people who do not have a lot, but have all the love in the world to offer, and evidently think the world of me , and it was wrong of me to be snide. On the other hand, I did not have a lot of patience with my father-in-law when he called me, in a panic, to ask if I could find out why he lost his homestead exemption when he bought his new mobile home, because he got a property tax bill for $26.00.

 

[Pirate]

All this talk of taxes on investment property and second or third homes has reminded me of something. Growing up, I was always under the assumption that beach homes were a luxury, which costs money. They were not considered investments, not much different than a person buying a Rolls Royce instead of a Ford LTD. It is a luxury. It seems that now, things have changed quite a bit. Beach homes may prove to be profitable over time, but let's face it, they are luxuries, not necessities, such as someone's primary residence.

Comments?

Well stated, and true. However, much of the current value increases come from the fact that these homes for many owners have turned primarily into investments. I would own a home there regardless, it is a great place to be.

I also agree with Shallowsnole that the increasing values shouldn't displace long time residents, but if beachfront is a luxury then it just may happen over time.

It seems like the county is raising taxes simply because they are able. Has there been a huge shortfall in the budget as of late? It seems with so many properties with new structures adding to the tax base that the higher dollar figure of taxes collected would easily cover any increase in cost of services. This seems to be double dipping to me. Shouldn't there be a basis for the justification to increase taxes? Just because a property value increases doesn't mean the cost to service the same property goes up as well. This seems to fall under the greed category like so many other things. Hasn't the tax revenue already increased markedly in recent years? Once a government agency has additional funds it is impossible to pare them back and if the county is raising taxes with no increase in costs that doesn't bode well for locals or part-timers. Maybe one of you in the know can tell us, where is the urgency to collect more funds coming from and where are these funds allocated?

 

[Smiling JOe]

Well stated, and true. However, much of the current value increases come from the fact that these homes for many owners have turned primarily into investments. I would own a home there regardless, it is a great place to be.

I also agree with Shallowsnole that the increasing values shouldn't displace long time residents, but if beachfront is a luxury then it just may happen over time.

It seems like the county is raising taxes simply because they are able. Has there been a huge shortfall in the budget as of late? It seems with so many properties with new structures adding to the tax base that the higher dollar figure of taxes collected would easily cover any increase in cost of services. This seems to be double dipping to me. Shouldn't there be a basis for the justification to increase taxes? Just because a property value increases doesn't mean the cost to service the same property goes up as well. This seems to fall under the greed category like so many other things. Hasn't the tax revenue already increased markedly in recent years? Once a government agency has additional funds it is impossible to pare them back and if the county is raising taxes with no increase in costs that doesn't bode well for locals or part-timers. Maybe one of you in the know can tell us, where is the urgency to collect more funds coming from and where are these funds allocated?

The last person you will ever hear requesting more taxes is me, but let me clarify a minor point. In the technical sense, WalCo did not "raise taxes." Rather, taxes were lowered. It is the assessed values which were increased due to the sales in 2005, which accounted for one of the largest price increases in property value ever. The milage rate (taxable rate) for Walton County has decreased for the last two years, and they are predicting a decrease this year. I have lived in a few towns, both large and small. Never before, have I lived in a town where the milage rate was as low as it is here. Currently, it is just under 1%. Most towns in which I have lived, have a milage rate of at least double that, if not close to triple that. Assessed values were ridiculously low in WalCo, up until last year when the assessed values of the majority of properties in WalCo finally came more in line with the reality of market value. I recall once owning a piece of land which I could have easily sold for $145K, and the assessed value was $15K. That is just one of many examples of the numerous properties which I have seen given a huge break, when looking at the Prop Appraiser's page. I think the growth of WalCo was too fast for the County to keep pace with, thus they were behind. Now, they have caught up, and the market has fallen back a bit, causing many property owners' assessed values to look out of whack to their own detriment. I bet you never heard these people complain when the difference was in their own favor. ;-) This is the first year, that we will see some unjust variances, weighing against us property owners, between the assessed value and actual market values.

I hope I have cleared that up a little bit for those of you not in the know. ;-) Please note that my statement above does not mean that I think WalCo gov't spends money correctly on services and parks for its taxpayers.

 

[Bob]

Everyone is doing a great job of rationalizing their own viewpoint, but the fact remains that SOH and the Citizen's moneygrab are both founded on preferential treatment of a segment of society by screwing over the majority. If I move in my own neighborhood here in Orange County to the same size home, my taxes will triple. Now why do you think this is a good thing. What do you say to young families trying to buy their first home? How about someone who has outgrown their current home. I can't pay my share, so here's the tab?? This is how you get someone paying property taxes of $1800/year living next to someone paying $5400/ year. At the beach, the numbers are much higher. This is the kind of policy you expect in third world countries, where a ruling class insures its position forever. Am I to feel sorry for those whose property is worth ten times what they paid for it because the carrying costs are now high? Oh I see, my neighbor can deal with it, not me.