Realtors cautiously backing property tax plan

Real estate agents statewide are cautiously embracing a Florida House plan that would eliminate property taxes on primary residences and limit the amount of tax local governments could collect.

"For Realtors, and people who market the state, the lack of a state income tax is a marketing tool, no question," said Trey Price, a public policy representative with the Florida Association of Realtors, an Orlando-based group with 165,000 members that represents real estate agents.

"If the House proposal were passed, and there were no property tax, that would be a very strong marketing tool, as well.

"House leaders on Wednesday unveiled a sweeping plan that would hike the state's sales tax to the highest in the nation, in exchange for reduced property taxes.

In most areas of the state, sales tax would be pushed to 8.5 percent. By comparison, California's tax on consumer purchases, now the highest in the U.S., is 7.25 percent.

House lawmakers estimate the change would generate nearly $8 billion in new Florida sales tax in the first year the measure was in effect. At the same time, residents and taxpayers would save almost $6 billion.

The average homeowner whose property is protected by Save Our Home legislation would save nearly $2,300 annually.

Though the idea of halting the escalations in property taxes that have clipped homeowners since 2002 isn't new -- Gov. Charlie Crist revealed his own plan a few weeks ago -- the House plan was both surprising and dramatic.

But not to Realtors. House leaders approached the Florida Association of Realtors a few weeks ago about the concept. Price said the group is "very intrigued."

Other prominent Realtors, however, said they aren't ready to endorse the House concept.

"It's short-term thinking vs. long-term," said Budge Huskey, president and chief operating officer of Coldwell Banker Residential Real Estate Inc., among the largest home brokerage firms in Southwest Florida.

"There's no question that if you announce a rollback in taxes, it will spark additional investment and purchases," Huskey said. "On the other side of the table, sometimes when projections are made on how much money could be raised, you can't always rely on their accuracy. Eventually, it becomes a quality of life issue."

Local Realtors agreed that property taxes are among several factors having the most severe impact on home sales throughout the region.

"We recognize that something needs to be done about both taxes and insurance, because they are dramatically affecting how people look at home ownership," said Joe Hembree, president of the Sarasota Association of Realtors."

That said, sometimes things that look good on the surface often have unforeseen complications," said Hembree, president of Hembree & Associates Inc., a Sarasota real estate firm."

The fact that the Legislature is looking to do something is a great thing," said May Aston, president of the Manatee Association of Realtors. "We all want something to happen with runaway taxes, but it has to be the right thing."

Like its Sarasota and statewide counterparts, Aston said the Manatee association intends to study the issue further before deciding whether to back the House proposal.

By KEVIN MCQUAID
Source: Heroldtribune.com