Some Estates Residents like portability aspect of property tax reform proposal

By ELYSA BATISTA
Thursday, November 8, 2007

It’s all about portability.

At least that’s the case for some Golden Gate and Estates residents, as the January property tax reform amendment vote gets closer.

More than 20 residents turned out for a tax information meeting Wednesday at the Golden Gate Community Center.

The main event was a presentation by Collier County Appraiser Abe Skinner and his staff on the possible effects of a proposed property tax reform amendment on Collier County homeowners.

And residents wanted clarification.

“I thought I understood the amendment,” said resident Rob Stoneburner, 38, of why he attended Wednesday’s meeting. “I just wanted to come in and see what they (county officials) had to say, about how they thought it (the amendment) was going to affect our county and other counties in the state.”

After Skinner made a brief explanation of how the Property Appraisers office works, county staff began the task of explaining the ins and outs of the state’s proposed tax amendment that is going to the voters on Jan. 29.

The proposed amendment would keep the 3 percent Save Our Homes cap, also known as SOH, double the homestead exemption from $25,000 to $50,000 and provide portability of Save Our Homes throughout the state.

The plan would also let homeowners take their Save Our Homes savings with them when they move within Florida, which under current law they lose — leaving many trapped in their current home instead of dealing with a higher property tax bill.

Under the proposal before votes, homeowners who want to buy a more expensive home would be allowed them to take all the SOH tax savings with them.

If a homeowner wants to buy a less expensive house than the one they currently own, the plan would allow them to take a percentage of their Save Our Homes exemption compared with the new home’s market value.

The portability proposal was good news for Rick Haylock, 47.

“I’m going to have to vote for it (the amendment) because of the portability,” said Haylock, an eight-year Golden Gate resident. “The rest of it doesn’t affect me, but the portability does. Right now you can’t sell and you can’t buy. You can’t do anything.”

For business properties the proposed plan provides a $25,000 exemption for business tangible personal property. The exemption would eliminate the need for about 1 million business owners to file.

A cap on tax assessment increases to a maximum of 10 percent a year for non-homestead residential and other non-residential real estate property is also part of the proposal.

But there’s a catch for the 10 percent cap.

Non-residential/non-homestead property owners would have to apply for the cap, just like they do for their homesteaded counterparts.

Another hitch is that both the additional $25,000 SOH exemption and the proposed 10 percent cap for non-residential/non-homestead properties won’t be taken into account by school districts when they do their tax bills.

As for tax breaks for first-time home buyers, elderly homeowners or affordable housing, none are being offered in the proposal.

After the meeting, hosted by the Golden Gate Estates Area Civic Association, Skinner said that even though the amendment is far from perfect he’s in favor of the proposal.

“I’m going to vote for it,” said Skinner, adding that portability was the tipping point for him.

He is concerned, however, with the 10 percent cap for non-residential/non-homestead properties.

“There’s going to be a lot of confusion about it,” said Skinner. “Because people would have to apply for the cap,”
The meeting did help Stoneburner get a better understanding of how the amendment would affect Collier.

And although he’s glad that portability was made part of the amendment, Stoneburner said he still has some doubts.

“I’ve been hoping for it (portability),” he said, adding that the thought of losing his SOH and facing a huge tax bill are the main reasons he hasn’t sold his house. “Portability is good, but there are a lot of things I’m concerned with.”

Stoneburner said he’s concerned about how other counties will fare if too many people take advantage of the portability, and if those seeking home ownership end up losing out because of the amendment.

“You rob Peter to pay Paul,” said Stoneburner. “Somebody is going to end up having to pay something in the end.”

Naples Market Recovery Lead by Luxury Market

The first sign of a recovery in the Naples, Florida real estate market has shown itself. Pending Sales of residential properties listed above 2 million for the first 3 quarters of 2007 have exceeded the first 3 quarters of 2006:

Pending Sales 2mil+:
2006 = 250
2007 = 257
Gain = 3%
Volume = 900 million

Further analysis of median price for the market segment shows that it bottomed out in the 1st & 3rd quarters of 2005. With overall Naples inventory near 11,000, we may be looking at a market that will move from a buyer's market to a more balanced market in early 2008. Reported by Joe Ballarino, President & Founder, Amerivest Realty.
Posted by Amerivest Realty