Property Tax reform for 2nd home owners and commercial properties
Rick and I have received a few telephone calls as well as e-mails asking questions how the real estate property tax cuts will be affecting non-homesteaded properties as well as miami commercial properties. In a nutshell, this is what has been proposed:
- Just like homesteaded properties, effective 2007-2008 budget year, cities and counties will have to rollback taxes to the 2006-2007 levels.
- All properties, which include non-homesteaded properties and commercial properties, will get a modest 7% tax cut (approximately) at the expense of local governments.
- Moving forward, the property taxes will be capped at a rate that does not exceed the growth of personal income and population growth. Just as a bench mark, personal income has grown at a rate of approximately 4%.
Although it’s not what you might have been expecting, nor what you would have liked, it helps for budgeting purposes in the future. Now you know that you will have to plan for a rate increase anywhere of approximately 4-5% as opposed to the unexpected rate hikes that we have seen in some of the properties that we manage. (Up to 20% increases). You may also want to check out these resources related to the tax reform: