Wednesday, November 01, 2006

Tax Bill Impacting Second Home Owners

Today, November 1st, most tax bills have been paid. But rapid increase in real estate prices in Florida in the past few years has caused an increase in property taxes. Many people own vacation property in Florida while their primary residence is up north. Many second home owners are unable to afford to maintain their homes in Florida due to increase in property taxes and home owners insurance, and many are deciding whether to sell. With many homes on the market, and slow sales and reduction in prices are making it hard for these second home owners to make this move. Non-Florida residents are paying 4 times the amount of property taxes as Florida residents. Florida residents who homestead their property have tax cap of 3 or by rate of inflation which ever is lower through the Save Our Home Exemption. Courtesy of Orlando Sentinel 11/1/06.

On the contrary, Florida residents feel they cannot afford to move within the State of Florida as they are will be taxed at new property rates, as their property will be reassessed. The concept of homestead portability is being discussed.