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New Florida Proposal to cut Property Taxes by up to 33% will cause values to spike up

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A new proposal on the Florida November 2008 ballot will, if voted by Floridians, make a dramatic decrease our State’s property taxes and will certainly help in the recovery of Real estate in Florida. Runaway Property Taxes have played a significant part in the current Real Estate Crisis.


The Florida Taxation and Budget Reform Commission voted to put a significant tax savings plan before Florida voters in November. If the measure passes as expected, some Florida property owners could realize savings of over 33% of what they were paying before. The bulk of the savings are a result of eliminating property taxes that the legislature requires school districts to levy in order to qualify for state aid. At the ballot, the proposal will need 60% of voters’ approval.

The state will recoup some of the expected eight billion dollars in taxpayer relief by hiking the sales tax by one cent. Once the proposal passes, we expect a spike in property values as they adjust to the new economics. Commercial properties will see an immediate increase in NOI and much higher values at the same Cap. Rates. Additionally, if interest rates decrease as expected, we will see an even more magnified effect on values as Cap Rates decrease.

Learn more at the Florida Real Estate Blog (www.FloridaBits.com)

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