Cancellation of property taxes in Florida: How can the real estate market be affected

Some local governments The idea of ​​canceling property taxes has been offered to reduce the burden on homeowners.

Florida Governor Ron Desantis has alluded to social media that he would support the abolition of these taxes throughout Sunshine, but will require a constitutional amendment.

Joel Burner, chief economist in RealTor.com, said he could benefit from the Florida market in the short term by helping to resolve the accumulation of inventory.

Reducing property taxes can reduce some pressure on home owners who wrestle with high housing costs, including increasing insurance rates, and encouraging more people to move, according to Burner.

Berner said that there are now more homes and homes that take longer for sale compared to previous years due Fears of the ability to afford costs. People who have been closed in low mortgage rates for several years are looking to move, but the demand is not from the place where it was compared a few years ago when the state had a hot housing market.

Several states seek the end of property taxes: you should not have to “rent from the government”

“Getting rid of property taxes would increase the budget of the house a little mainly and allow people to buy an initial house or buy a house for a home, or buy their dreams house they may not have been able to bear before Because it is the property tax “,” Berner said.

However, this would effectively raise the budgets of buyers and cause a little increased demand, which leads to high prices in the short term.

This step can negatively affect societies in the long run.

If local property taxes are replaced by increasing sales tax at the state level, there will be less local control of cities and educational areas to raise them Special tax revenues “In a way that meets their specific needs,” said Burner.

Republicans are seeking the Palestinian Authority to impose illegal immigrant transfers to finance the reduction of property tax

He said that the various municipalities have different requirements, and “comprehensive tax revenues at the state level will be less specialized than property taxes for these requirements.”

“There will be” effects on property taxes. “

For example, Zhao said that buyers can “realize that local services, such as schools, will suffer as a result”, which “would reduce the benefits of canceling property taxes.”

Zhao and Berner said it is still unclear how the state will revenue to replace property taxes.

“This may also be not polite for potential migrants to Florida,” Zhao said.

However, the issue of high insurance costs remains.

“If the cost of insurance is due to the intensification of climate risk, high enough to compensate for the provision of property tax, buyers may still hesitate to buy in Florida,” said Zhao.

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But Florida is not the only country to consider plans to cancel property taxes. Conservative leaders are looking financially in several states to do so, With a legislator in Pennsylvania On the pretext that homeowners should not have to “pay the rent” to the government.

“Property taxes are an issue that is not completely partisan, because in some areas, it is a bigger problem than others,” said MP Ross Diamond, R-Lebanon, noting that there are varying relationships between taxes and financing educational provinces.

“For me,” the big deal “is that I want people to own their homes and do not have to rent from the government, throughout the state of Pennsylvania.”

Charles Cretz in Fox Business contributed to this report.