Tax Break Ballot Proposal to Help Daytona Beach Buyers

Delivering on a priority for Gov. Charlie Crist, the Legislature voted to put a tax break for first-time homebuyers on the 2010 ballot, in the hopes of stimulating our real estate market. First-time homebuyers would be exempt from paying taxes on 25 percent of their home’s value. Any buyer who hasn’t claimed a homestead exemption in the previous eight years would qualify. The savings phase out over five years.

The proposed constitutional amendment also would lower the annual cap on assessment increases for businesses, rental properties and vacation homes from 10 percent to 5 percent. To become law, 60 percent of voters will have to approve the amendment in the November 2010 election. The tax breaks would apply in 2011.

Supporters say there are still 300,000 homes in the inventory to be sold. “Right now, our homes are not being sold at all,” said Sen. Evelyn Lynn, R-Ormond Beach, the sponsor. “People are dropping their payments. They’re walking away from their homes. Nothing is selling.”

According to the Orlando Sentinel, critics say "the property tax amendment would deal another blow to to schools, cities and counties. The first-time break is expected to cost schools and local government just $10 million statewide in the first year, but that number would rise over time.

"The House sponsor, Rep. Carl Domino, R-Jupiter, said he believed the amendment would actually be a boon for governments by warding off further declines in real estate values if fewer homes are sitting empty. 'If there are 100 homes in the neighborhood and 40 of them are up for sale … the consequence of that is the property assessors would have to lower the value in that neighborhood,' Domino said."

The measure passed the House 104-13, and the Senate 26-11.

Personally, I'm optimistic. We won't have 300,000 homes in our inventory by the time this would become law. And I'll keep helping buyers and sellers of Daytona Beach homes get fair prices for their real estate in any market.

Sherry Armstrong, Realtor
386-679-3191
http://www.sherryarmstrong.com/
sherry@sherryarmstrong.com