Florida has long had a reputation for Shuffleboard and the Early Bird Special to contrast the month of March when the state is riddled with High School and College Co-ed Debauchery, namely Spring Break.

The State has grown up a lot in the past 50 odd years though... and growing pains have left us where we are now - in the middle of a huge tax dilemma.

One demographic that has been brought to the forefront of this debate is that retirement community that the State may be neglecting in their planning as thus far nothing in the news has touched on how they will benefit directly.

Sure, they'll get a tax break with possible double homestead exemptions and rolling back taxes to their assessed levels of 4-5 years ago... but some of these people have been in their houses for 20+ years and the caps on their taxes have certainly been broken a few times...

Think about it... if you get a 3% maximum increase yearly over 20 years, you're talking some major compounding!

So now with Grandma and Grandpa as Art Blanchet and Bill Quigley refer to them well past the days when their pensions ran out and living on a VERY fixed income are watching their taxes go up and their crown molding fall down... how do they deal with the idea of higher taxes on their everyday shopping AND the fact that maybe their kids who are about to retire may not be in a place to join them in Del Boca Vista (Seinfeld-ism)?

The fact is... they ARE paying more than their fair share right now. They are not making an active income yet they are getting taxed on their properties in lieu of income tax.

Then with the measure to raise sales tax, their cost of living will be somewhat contained but their fixed income is still getting taxed despite the fact that it isn't taxed directly.

Many Florida homeowners simply have it easy. WHAT?!? Blasphemy!

NO... listen up... Florida has no State Income Tax so many people come here because Property Taxes are much lower than they'd pay if they stayed in their home-state or even home-country! I said it! YOU HEARD IT! Millionaires and Foreign Investors!

For instance... American Express was the subject of a news story specifically regarding the Centurion Card. No...99% of the people in the world have NO clue what I'm talking about. Some people have heard of it but think it is an urban myth... I know it exists. Why? Because I've held them in my hand. Yes - I've touched several REAL Black Amex Cards. There are only 1500 in the world... why do I bring them up? The highest concentration of Black Amex Holders in the world live in Palm Beach County, Florida.

What in the world does that have to do with nothing whatsoever?

well... Grandma and Grandpa live in a $125,000 condo that they paid $30,000 for 20 years ago. They're paying $2500 in Income cum Property Taxes to live there...

But... Millionaires with great credit - because that's what you have to be to get an invitation to apply for a Black AMEX after 5 years of spending $5-10K minimum PER MONTH on a Platinum AMEX - don't pay income tax on their passive and active incomes. And they live in $12.5Million Condos on the Beach... 100 times the pricetag but making FAR more than 100 times the income in MANY instances.

Oh... that's just a drop in the bucket sayeth Lawmakers.... yeah... they're right... THEIR BUCKETS.

(Ironically while this is up for debate, Former Congressman Mark Foley is paying for his defense with the millions of dollars in leftover campaign monies... why aren't those going back into the state since he's NOT campaigning?!)

Let's say ONE Black Amex holder at $5000/mo spending has to pay 2% more sales tax... Write it on paper with me people!... yes... that's $100 more per month. Oh... yeah.. .they'll feel that.... but $100/month times 12 for a year is $1200/year or Half of What Grandma and Grandpa pay in taxes! Oh yeah... and the IRS lets you deduct State Sales Tax if your State has no Income Tax!!

These people are SPENDING more in two weeks than Grandma and Grandpa are being Taxed!

So it is boiling down again to the Haves vs the Have Nots.

Grandma and Grandpa HAVE NOT so they're Taxed in their Retirement...

The HAVES are still going to get tax breaks regardless... and the net effect of their increased spending being taxed will really not amount to much at all.

So why go that route?

Because there is no State Income Tax to identify where monies are really coming from.... what?!

The Millionaire demographic is harder to identify than Grandma AT THE STATE LEVEL.

No... I'm not pretending to be Robin Hood... I don't wear tights. What I'm saying is that the issue isn't property tax, nor is it sales tax....

it isn't about EQUAL treatment of all citizens... it is about EQUITABLE treatment...something far different and far harder to create except in Utopia... an island off of Never Never Land.

That's where lawmakers just can't seem to dig in this... how do you identify taxpayers that should be paying more or less?

Income Tax

Believe me... I don't want to pay it either... but it is definitely a place where a RETIREE EXEMPTION Could be enforced!

Thanks to Lisa Abrams-Cruz - a soon to be ActiveRainer and to Cyndee Haydon, my fellow Wildcat in the Sugar Sands of the Gulf Coast for making me think about this post enough to come up with something coherent...and thanks to Renee Burrows for kicking me off with a post that this legitimately compliments!

Renee's post was titled When You are Just Getting into the Biz ~ Sphere is #1! and now I will illustrate one way for Residential Realtors to get a taste of Commercial, using their Spheres!

In a previous post, a VERY early post for me, I wrote about How to turn your C inventory into your A clients - it is a theory of Production Management that I learned during my MBA. In this case, I'm going to couple Renee's ideas with C Inventory to show you how to get a start in some Small Commercial Real Estate transactions.

So... let's review. Your Sphere of Influence is the people you know that know you. Friends, Family, past clients/customers/vendors etc... basically people that know your name when you call. Taken a step further as your have progressed in your Real Estate Career... your Sphere should have grown with your Database.

Now, you not only have that person you used to carpool with... but you have their friend Joe, their little sister and 3 or 4 of their co-workers too!

Then there are the people that bought from you a while back, you've sent some cards and such... but you really haven't heard from them in a while. They are your C Inventory. They're in your database... on a shelf... gathering dust just like that fuel pump for the '73 Camaro you restored three years ago but it still sits covered in a tarp in your driveway. In business... it is the products you stock but rarely sell.

So what does this have to do with Commercial Real Estate?

Everything! Now is the time to look through that database and RESORT your data!

What should you be looking for?

• Doctors
• Lawyers
• Dentists
• Accountants
• General Small Business Owners
• General Contractors
• Plumbers who own their businesses

Pretty much any entrepreneur type will do.

What's the gig like?

Well, you should be keeping up with these people in their goings on - just like normal. Now, though you're going to schedule some time specifically to offer the new service of finding them Commercial Real Estate Options for their Practices and for Investment Purposes.

One scenario is:

You -, "Did you know that you, Dr. J, can BUY your office space with 100% financing to Doctors AND great rates??... No? Well, I have a mortgage partner that has access to some local lenders offering that program. Doesn't that sound great?"

This is the same Rent vs Buy scenario you pitch to first time homebuyers but now you get to talk to them about Depreciation, Tax Advantages, Long Term Gain, 1031 exchanges... all those great things that come up in a commercial talk.

Dr. J - "Well... I'm not sure I would do 100% financing in this market and I don't think I have the cash to put down on what I need."

You - "But you are interested! So maybe we just need to get David on the phone and he can talk to you about some options that might help you get there. He knows how to make these deals work out perfectly for your specific financial needs..."

Dr. J - "I did see all those Medical Office Condo signs up Jog Road in Boynton Beach, Florida and I would love to have my practice nearer to my home AND most of my clients are up there"

You - "Sounds like a match made in heaven"

Another scenario would be for a General Contractor:

You - How's business Mr. Carpenter?

Mr C. - Great... we're so busy and we're bursting at the seams. I need to grow my company but I just can't seem to get it done right

You - Well were you thinking of getting some more space? Maybe buying... and getting a Working Line of Capital to help you with expenses?

Mr C. - Yeah ... that would be great. I've got 1500 square feet and 20 employees jostling for room. I need some storage and a better office space or my secretary is going to quit again.

You - I know there are some great contractor parks out there with units for sale in this area. On top of that you might get some referrals from your neighbors in similar businesses. With today's great rates, you should also talk to my mortgage partner... he can get you great rates with 10-15% down!

Mr C. - I would love to talk about that!

You - why don't I patch him in and we'll set up a meeting right now!

Yeah Yeah Yeah - role playing is silly... but most great sales training courses have it mandated!

The point is, Now you have the list of clients to target in your list. They are your C Inventory because they haven't been taken off the shelf to sell them yet! They can become your A Inventory because you could get them into another transaction if you just know what buttons to push.

It isn't even about finding them the space. Commercial Space is easy to find - it is on the main roads. Seldom do you find normal businesses hidden away... but should you need one, you'll find it! Most office Condos are on main roads. Most Warehouse Condos and Industrial Condos are clustered in certain areas of town.

So you know what area they want to be in, you know what type of property they want, you know square footage..., start driving! Take your camera and take some notes. You'll find it for them in no time.

Between you, me and a good commercial real estate attorney, we can create your first real commercial deal and make it SMOOOOOOTH sailing!

Whether your client wants to buy an Office Condo or Office Building, a Warehouse Condo or an Industrial Park, a Retail Condo a Strip Center or a Shopping Center... or if they want to just invest in some new property...working together, we can get you on your way to selling some commercial real estate!

---

More Florida Mortgage and Real Estate News You Can Use From
David A. Podgursky, MBA
The Mortgage Go To Guy
Your Source for Residential, Commercial, Investment and Relocation Mortgages in Florida

Saying Sweet Corn and Palm Beach County, Florida in the same breath might make you do a double take. The 6th Annual Sweet Corn Fiesta at the South Florida Fairgrounds this Sunday, April 29 from 11AM to 5PM will show you why Sweet Corn is a big part of Palm Beach County, Florida.

I would never have known that there are over 27,000 acres of Palm Beach County, Florida under cultivation for Sweet Corn! The Florida climate ensures year round growing... and the extra sun helps create an ultra sweet crop!

Actually... few counties in the country - even in Iowa - farm 1/2 that many acres!

Join in the fun of Corn Eating at the Adult International Corn Eating Contest to be crowned this year's Corn King! or you could let your kids compete in a Corn Shucking contest!

The Sweet Corn Fiesta will have fun for all ages including contests, rides, games, food and country music all free with admission.

Tours of the Yesteryear Village - an historical recreation of Florida of the past - will also be given.

Admission is adults $6, children 6-11 $4. Children 5 and under are admitted free. Parking is free. Yesteryear Village is located on the South Florida Fairgrounds in suburban West Palm Beach off Southern Boulevard one mile West of the Florida Turnpike.

For additional information, phone (561) 996-0343

---

More Florida Mortgage and Real Estate News You Can Use From
David A. Podgursky, MBA
The Mortgage Go To Guy
Your Source for Residential, Commercial, Investment and Relocation Mortgages in Florida

Florida Mortgage | Foreign National Homebuyers: Europe has come calling!

Wow... the Sun Sentinel has finally caught wind of the Europeans that are buying en masse in South and Central Florida these days!

The article speaks of why Western and Northern Europeans are growing fonder of the area for both the lifestyle and climate.

They printed this map showing that most of the European Buyers are from the UK.

There are also many from Denmark and Holland.

Right now, Mortgages for Foreign Nationals are at an all time high. It is easier now than it has been in years to get financing at attractive rates.

That was actually a point missed by the journalists. Loan Programs are available from far more banks and lenders. Also there are new options in foreign exchange that are making the conversion of funds that much quicker and easier.

Some of the other factors that are influencing the current investment boom is the strong Euro. Based on the Dollar, the Euro is dominant... and the British Sterling is even stronger.

So what does this mean to Europeans? It means they're making much more on their investments than US citizens.

How? Foreign Exchange Rate Hedging...

The Dollar has long been an international standard in currency. Even people with stronger currency have a tendency to sock some away in US currency. It was actually causing a panic a few years ago when the US believed that so many bills were out of circulation and sitting in foreign floorboards and safes that we would eventually run out ourselves.

• The Dollar has also been volatile - as volatile as our politics and financial markets.



• As the dollar has dipped - much like a stock, foreign investors have bought the dollar.



• As the dollar has recovered - the investors would sell the dollar back and take the profits.



• So... while the dollar is LOW, investors are buying up Dollars with their Euros.

Then they buy a property here in the US.

Over time, the property itself increases in value. The dollar also becomes stronger over time as we recover economically.

Then when the foreign investor sells the property, they make a profit in appreciation. They then take the Dollars and exchange them for Euros and make a profit on the appreciated Dollar!

So if they buy the US Dollar and the House.

• They put $100,000 down on a $500,000 house (20%).



• The House appreciates 15% over 5 years to $575,000.



• and the Dollar gains 5%, to $105,000 (equity CAN appreciate in this instance).



• The combined profit is $80,000 on $100,000 invested or 80% in 5 years!



• subtract out the debt service and depreciation to get a true IRR

How's that for some fancy European Math!

So... who wants to start marketing overseas with me??

---

More Florida Mortgage and Real Estate News You Can Use From
David A. Podgursky, MBA
The Mortgage Go To Guy
Your Source for Residential, Commercial, Investment and Relocation Mortgages in Florida

Florida Property Tax Update - How the Retiree Community may get helped and hurt

Florida has long had a reputation for Shuffleboard and the Early Bird Special to contrast the month of March when the state is riddled with High School and College Co-ed Debauchery, namely Spring Break.

The State has grown up a lot in the past 50 odd years though... and growing pains have left us where we are now - in the middle of a huge tax dilemma.

One demographic that has been brought to the forefront of this debate is that retirement community that the State may be neglecting in their planning as thus far nothing in the news has touched on how they will benefit directly.

Sure, they'll get a tax break with possible double homestead exemptions and rolling back taxes to their assessed levels of 4-5 years ago... but some of these people have been in their houses for 20+ years and the caps on their taxes have certainly been broken a few times...

Think about it... if you get a 3% maximum increase yearly over 20 years, you're talking some major compounding!

So now with Grandma and Grandpa as Art Blanchet and Bill Quigley refer to them well past the days when their pensions ran out and living on a VERY fixed income are watching their taxes go up and their crown molding fall down... how do they deal with the idea of higher taxes on their everyday shopping AND the fact that maybe their kids who are about to retire may not be in a place to join them in Del Boca Vista (Seinfeld-ism)?

The fact is... they ARE paying more than their fair share right now. They are not making an active income yet they are getting taxed on their properties in lieu of income tax.

Then with the measure to raise sales tax, their cost of living will be somewhat contained but their fixed income is still getting taxed despite the fact that it isn't taxed directly.

Many Florida homeowners simply have it easy. WHAT?!? Blasphemy!

NO... listen up... Florida has no State Income Tax so many people come here because Property Taxes are much lower than they'd pay if they stayed in their home-state or even home-country! I said it! YOU HEARD IT! Millionaires and Foreign Investors!

For instance... American Express was the subject of a news story specifically regarding the Centurion Card. No...99% of the people in the world have NO clue what I'm talking about. Some people have heard of it but think it is an urban myth... I know it exists. Why? Because I've held them in my hand. Yes - I've touched several REAL Black Amex Cards. There are only 1500 in the world... why do I bring them up? The highest concentration of Black Amex Holders in the world live in Palm Beach County, Florida.

What in the world does that have to do with nothing whatsoever?

well... Grandma and Grandpa live in a $125,000 condo that they paid $30,000 for 20 years ago. They're paying $2500 in Income cum Property Taxes to live there...

But... Millionaires with great credit - because that's what you have to be to get an invitation to apply for a Black AMEX after 5 years of spending $5-10K minimum PER MONTH on a Platinum AMEX - don't pay income tax on their passive and active incomes. And they live in $12.5Million Condos on the Beach... 100 times the pricetag but making FAR more than 100 times the income in MANY instances.

Oh... that's just a drop in the bucket sayeth Lawmakers.... yeah... they're right... THEIR BUCKETS.

(Ironically while this is up for debate, Former Congressman Mark Foley is paying for his defense with the millions of dollars in leftover campaign monies... why aren't those going back into the state since he's NOT campaigning?!)

Let's say ONE Black Amex holder at $5000/mo spending has to pay 2% more sales tax... Write it on paper with me people!... yes... that's $100 more per month. Oh... yeah.. .they'll feel that.... but $100/month times 12 for a year is $1200/year or Half of What Grandma and Grandpa pay in taxes! Oh yeah... and the IRS lets you deduct State Sales Tax if your State has no Income Tax!!

These people are SPENDING more in two weeks than Grandma and Grandpa are being Taxed!

So it is boiling down again to the Haves vs the Have Nots.

Grandma and Grandpa HAVE NOT so they're Taxed in their Retirement...

The HAVES are still going to get tax breaks regardless... and the net effect of their increased spending being taxed will really not amount to much at all.

So why go that route?

Because there is no State Income Tax to identify where monies are really coming from.... what?!

The Millionaire demographic is harder to identify than Grandma AT THE STATE LEVEL.

No... I'm not pretending to be Robin Hood... I don't wear tights. What I'm saying is that the issue isn't property tax, nor is it sales tax....

it isn't about EQUAL treatment of all citizens... it is about EQUITABLE treatment...something far different and far harder to create except in Utopia... an island off of Never Never Land.

That's where lawmakers just can't seem to dig in this... how do you identify taxpayers that should be paying more or less?

Income Tax

Believe me... I don't want to pay it either... but it is definitely a place where a RETIREE EXEMPTION Could be enforced!

Your Mortgage Advisor is WHO???

Today's Mortgage Industry is a vast, complicated landscape of amortization, interest calculations, equity lines and bond prices.

People are clamoring to get in on the profession but soon find that it is far more education intensive than they ever would imagine.

Just keeping up with the ever changing progams offered by the major lenders is a challenge, but to keep up with a whole slew of smaller, more diverse and cutting edge lenders and the effect the mortgage backed securities market has on their rates is something better left for a pro.

My main concern as a Mortgage Broker is... who are borrowers going to for their mortgage advice?? and why aren't they mortgage brokers?!

They say you can't spend 10 minutes in a restaurant in Boca Raton, Florida or any other volatile real estate market without hearing some conversation start up about real estate. From the first time homebuyer to the retiree living on rental incomes from an industrial park complex, everyone wants to talk about it.

The thing is... that's GREAT for me... it means that there are people thinking about transacting and I want to know them!

The problem is... when everyone is talking about it - no one is LISTENING about it!

Far too often I'm hearing someone call me to tell me what loan fits their needs rather than going through a brief but thorough fact finding mission to determine which of the THOUSANDS of loan products out there fits their needs best.

• All I want is a 30 year fixed, no points, 5.5% on a Mobile Home
• Don't even bother me with that talk about Interest Only
• Option ARMs are only talked about by Thieves
• I don't want any of that Negative Amortization stuff
• My friends went bankrupt because of their ARM

WHOA... hold the bus!

It is GREAT to know what you want... and to do some research into different loan programs... but I don't operate like that. Why? because you are UNIQUE and my goal is to take your unique financial situation and pair it with a specific loan program that will effectively and efficiently meet or exceed your needs for the entire life of the PROPERTY - NOT the just Loan!

HOGWASH!? NO... and don't listen to anyone that tells you otherwise! I MEAN IT!

Look... here's the skinny.

• Who are you?
• How old are you?
• What stage are you in your life?
• What stage are you in your family?
• What stage are you in your career?
• What is your salary like today... and next year?

Those are all things that all your research can't help you distill with the help of a Banklate or SpendingTree. They are questions that I, your friendly neighborhood Mortgage Guy will ask you.

Wikipedia, MSN Money, Mortgage-X... none of them can help you sort through who YOU are to arrive at the right program for you... instead they let you bring your biases and those of your trusty advisors with you.

You know... Mom and Dad, Your friend the family attorney, Your grandfather's accountant, your rich older (much older) sibling, your family's stockbroker, your Realtor... all the people that would answer all the questions above VERY differently than you.

So why are THEY telling you which loan to get? How are they, all of a sudden, masters of the information that will help you get the program that fits YOUR needs properly?

Well...sorry to say... I'm BLUNT so I'll say it anyway... THEY ARE NOT the people you should be listening to for Mortgage Advice. Most of the time they aren't even the ones you'll tell about your credit and salary issues when you're NOT buying a house!

Let's look at the facts.

• Mom and Dad are 50-60s, settled down, may have one more house in their future and it is likely smaller than this one, they have savings, pension, security and retirement planned. Even better, they have YOU out of the house so you're not draining their disposable income away from their leisure. So how are they poised to help someone starting out? much less understand one in this economic time/market?
• Your family attorney, in his 60's in his prime earning years, has a huge house on the affluent side of town, a condo by the beach, and a timeshare in Ireland for when he really needs a Guiness and a Sweater. He's got a few million in assets, partially liquid and his house is long paid off. How does HE know what you, the newly hired salesperson is going to need to get into the house and afford to stay in it??
• Grandfather's accountant... When I was your age, I paid $1,200 for my first house and I paid CASH because that's the way we did it! - do I need to continue??
• Your much older sibling, mid 30's, two cars, two incomes, two kids, too many credit cards...too condescending... you don't really talk to him about anything anyway!
• Your family stockbroker/financial planner... PLEASE... this is your home, there is no return on the equity in a home so leave it alone! We haven't covered that yet, sorry... Every dollar you put in that house is a dollar you're not putting in a mutual fund with him....move along.
• Your Realtor... well... they should at least be versed in mortgages to some extent, but the best Realtors won't talk loans with you because it is illegal and unethical for them to do so because of license laws!

What have I just illustrated?? There is an impartial person who has good advice, who knows the markets, who knows the products, who is just waiting for you to call and let him do his job... but... and this is a BIG BUT

But you've got all the advice you can handle in what is already an overwhelming and stressful life cycle event!

So... who do you listen to? Do you consider the scrutiny you'll endure if you pick something outside of what everyone else thinks is right for you?

DO YOU CARE?

Remember... everyone says, "Buying a home is the single, biggest investment you'll ever make..."

So why are you buying with other people's own needs and experiences when they probably do not reflect what YOU need??

Look... it is simple. I'm not telling you to tune them out and only talk to me. That's unreasonable. What is reasonable is to tune everyone out for a little while. Let them know you'll get to them. Then take the evidence to them that your Friendly Neighborhood Mortgage Go To Guy (or Girl) has to offer.

Relate to them the reasoning behind why you may want to consider an ARM, or the benefits to YOU of Interest Only, or the easy to afford minimum payment on the Option ARM, or the versatility of the Hybrid that is a combination of two or three loan programs.

Better yet, show them that there is someone else out there with your best interests in mind that is an expert in that field... nay a guru that you're willing to trust and so should they.

I'm not saying they'll trust me too... but with proof and logic, we can at least make them understand why the program I offer fits you better than the program they think you should have.

And isn't compromise what good, lifelong relationships are about?

So when the time comes that you're thinking of buying your first home, relocating to Florida, buying a Second Home with a Beach View, buying an investment property, buying a property to grow your business... call me...

We'll sit down and have a coffee... and I'll LISTEN...

After that, we'll know your entry strategy, exit strategy and have a good idea of what you want life to be like in your new loan. Then I'll get you pre-approved so you can call your favorite big sister/new realtor and let her drive you all around town to find you a new property!

---

More Florida Mortgage and Real Estate News You Can Use From
David A. Podgursky, MBA
The Mortgage Go To Guy
Your Source for Residential, Commercial, Investment and Relocation Mortgages in Florida

Florida Property Tax Update - HOUSE BILL REJECTED!

Breaking News from the SunSentinel.com regarding the Florida Property Tax: This didn't take long at all. Instead of waiting until this morning to make a resolution on the Florida House's property tax reform bills, the Senate rejected them all yesterday morning as their first order of business!

I guess the State Senate read my post yesterday about how I felt the House did not understand the "Time is of the Essense" clause of Real Estate!

The Florida State Senate has decided that perhaps the House plan is a little too radical and offsets the property tax with too high a state sales tax.

So the Senate's bill would work like this:

1. Roll back taxes to the 2003-2004 level (sound familiar) instead of 2000-2001
2. First time homebuyers that have been left in the lurch for so long would get a double Homestead exemption for a total of $50,000
3. Businesses (woo hoo!) would get a $25,000 Tangible Property Exemption which definitely helps the small business owner and since 90% of jobs are created by small businesses i.e. middle income business owners, this should offset the burden that was going to plague small businesses
4. Portability! Biggest YAY of all. Meaning that people can carry their tax basis with them. If someone is in a $200,000 start home and moves to a $500,000 family home, then they will not have a 250% higher tax basis any longer! This especially helps the struggling middle class! This will also help people that have been in their homes for a long time to move without taking the burden of today's property assessments with them which also benefits the retirees.

Now the House and Senate will be sitting down to try to work out a compromise between their plans. Their goal is to complete their unified plan by May 4th when they are supposed to Adjourn for the summer.

The issues on the table that I believe will be most likely to carry through from this plan will be

• Double Homestead
• Compromised Roll back
• Portability
• Maybe the business tangible tax exemption

The bills from the House that will likely carry through are

• Sales Tax Hike - but likely compromised
• Assessment practices is definite
• Cap on Local government add-ons

In other news that could benefit a more aggressive plan, in a former post I noted Gov. Crist was signing a pact with the Seminole Nation to secure more slot machines with them in return for tax monies from them... a first for the Seminole Tribe in Florida. Now it appears that the State and Gov Crist are looking to expand gambling in the state, further expanding the taxable revenues from these casinos! This should definitely help with the revenue crisis that these tax bills are sure to create by providing more money to schools.

Still what is really interesting is that Republican Governor Charlie Crist has not weighed in officially...

---

More Florida Mortgage and Real Estate News You Can Use From
David A. Podgursky, MBA
The Mortgage Go To Guy
Your Source for Residential, Commercial, Investment and Relocation Mortgages in Florida

Florida Property Tax Update - Republican Bill Passes in the House

Breaking News from the SunSentinel.com regarding the Florida Property Tax resolutions are still not addressing the immediate needs of those hardest hurt by the high cost of property taxes throughout the state.

 

 

As the Republicans control the Florida House, there was little doubt that their bill would get the majority.

Unfortunately, the "Time is of the Essense" clause of Real Estate did not seem to compel these Florida Law Makers to affect a change any sooner than 2009 if this becomes a true Amendment to the Florida Constitution. 

The Florida House, in its infinite wisdom has proposed the Florida Tax Bill go on the ballot in the 2008 elections if it gets passed by the State Senate... which it probably will as they're a Republican Majority as well.

The Republican Bill centers around the now notorious Property Tax for Sales Tax Swap that Art Blanchet focused a post on... the actual impact of this PHASE of the Tax bills in session would cut $25 to $35 Billion from the State revenues over the first five years.... and this is even with the proposed sales tax increase!

The article in the SunSentinel.com noted that this Amendment would officially make Florida the ONLY State with no Property Tax AND no State Income Tax!.... but it would also be the State with the highest Sales Tax!

The other bills in session? (HB=House Bill)

• HB7001 - would roll back property taxes to their 2000-2001 levels and cap them.  This bill passed unanimously.
  This would have a dramatic effect on the ability of people to upgrade from a starter home to a family home.
• HB261 - this one affects Nick M The Appraiser ... it modifies assessment practices. 
  In a prior post I mentioned the feud between the Palm Beach County and Broward County appraisors over assessing property "As Developed" the Broward County Stand vs "Potential Use" or Highest and Best Use as the Palm Beach County Stand.  Obviously assessing a house for its current usage rather than future (potential) usage will mean that the property is valued more fairly.  The problem really lies with lower income areas where eminent domain is an issue.  A property that houses Section 8 might be in the Path of Progress and all of a sudden the people can't afford to hold the property and rent it out because taxes are too high.  The property is still worth what it is worth but all of a sudden the land is worth a fortune.
• HB1483 - this limits local governments abilities to increase taxes.  This is in reaction to several municipalities with add-ons to the main city or county taxes. 
  There are several municipalities (like Greenacres) which are more highly taxed than areas just 1-2 blocks away!  This is an unfair practice and creates undue financial strain on property owners in those areas.

All four of these measures go to the State Senate next...

But that's not the end of it!

The State Senate is voting on Friday on its own plan.  It would not be as sweeping as the House bill as it would only save $12.3 Billion in its first five years.  The plan would roll back taxes to their 2003-2004 levels instead of all the way to 2000-2001.

Now... here's where it gets really interesting. 

Bills are passed - Amendments are elected....

HB7001 could be immediate... but if voters in 2008 decide they like the forthcoming Amendment better than the bill, they can vote the Amendment in, which would immediately supercede the bill!  So if the Senate Plan passes as an Amendment, then the tax roll back would be defeated.

Getting back to Sales Tax... The immediate Sales Tax hike would be 1% going towards schools.  Then local governments would have the option of raising it another 1-1.5% depending on their needs.  The highest Sales Tax would be is 8.5%.

Now... I wonder how this will play out in the Senate on Friday!

The really interesting part is that the Democrats have the more sweeping ideas and favor a larger cut in taxes... The Republicans a smaller... but Republican Governor Charlie Crist has not weighed in officially... but sources have quoted him as saying "The Bigger the Better" (paraphrase)

---

More Florida Mortgage and Real Estate News You Can Use From
David A. Podgursky, MBA
The Mortgage Go To Guy
Your Source for Residential, Commercial, Investment and Relocation Mortgages in Florida