Tax burden shifted to new buyers
A Herald-Tribune article reveals that many homeowners want to move but are staying put to avoid a major tax increase associated with a new home appraised at the current market value. In Florida, as a result of the Save Our Homes Amendment, tax increases for primary residences are limited to three percent a year.
While this tax limitation does protect low income individuals from losing their homes, it has created a serious tax inequality problem across the State of Florida. A major portion of the tax burden is falling on newcomers and first home buyers that are taxed at market rate.
In the long run, this inequality will hamper the real estate industry in Florida if the tax burden is not more equally distributed. Tough to imagine very many politicians would be willing to take on the burden of fixing this one.
Homeowners feel trapped by taxes [Herald -Tribune]