Making reference to escalating property taxes during a downward real estate market as “Sudden Posterior Reduction Syndrome” (or getting your assets taxed off), the Taxpayers First PAC is moving forward for an Amendment which will avoid property tax increases when property valuations decline.
In this Youtube video clip, Taxpayers First asks voters to embrace and support Amendment 4 at the polls in November. The parody online video provides a talk show host talking to a physician about Sudden Posterior Reduction Syndrome.
“I first noticed on a patient around the onset of the recession,” states an actor referred to as Dr. Stanton Robinson. “The value of his home went down, but his property taxes went up.”
“That sounds really serious,” the talk show host comments.
In addition to suspending the so-called, “recapture rule”, Amendment 4 provides an extra homestead exemption for first time homeowners. This extra real estate property tax exemption will be good for approximately 5 years.
It's quite likely it could lead to lowered revenue for local governments, that have had to come up with sizeable cuts to manage revenue deficits. Nevertheless, for those who own homes, or wish to buy soon, it could lower their costs substantially.
Amendment 4 is among the numerous constitutional amendments on November’s ballot that seek to reduce property taxes. The additional amendments concerning property tax breaks include those for widows of armed forces veterans and widows of law enforcement officers.
Even though the precise wording of the amendment hasn’t been completed, it should consist of two key adjustments to the current tax code:
An increase for the homestead exemption for first-time house buyers from $50,000 to 50% of the home’s value (up to the average selling price in the county) for the initial 5 years. Reducing the cap on property or home taxes for non-homestead properties including: second homes, investment properties, commercial properties and small businesses.
The existing annual property tax increase for investment/commercial properties is up to 10% to each year. The new cap would reduce property tax increases to 5% per year. That new 5% limit would nearly provide equality with the existing 3% cap on primary residences which have the homestead exemption. This will be significant to renters too. Whenever most landlords encounter a property tax increase, that fee is forwarded to the tenants by means of increasing the rent payments. Lowering a landlord’s taxes might decrease rent increases.
Proponents of the amendment think that minimizing taxes will improve home sales and promote business activity. Tampa contains a number of Tampa homes for sale. The rest of Florida also has a huge supply of unsold real estate on the market today. Through making these properties cheaper to own and sustain, it’s expected that Florida’s significant supply will decrease and the cost of homes may yet again increase.
