DeSantis wants to end Florida property taxes as the influx of new residents continues

Florida In recent years, a new influx of residents has been seen in recent years as Americans in high-tax states have chosen that lower tax burden.

government Ron Desantis He is working to provide property tax relief to Floridians, so he is asking them to eliminate property taxes. This is a debate that may take over next year after Congress did not adopt a $1,000-less rebate for Homestead property owners.

Desantis criticized property taxes for effectively forcing homeowners to “pay rent to the government” on their property, and called for steps to protect Florida homeowners next year.

Florida proves to be an even more economically attractive destination for residents of high-tax states such as California, New York and New Jersey, as property taxes have been eliminated or further reduced.

Two Florida Stories: Real Estate Industry torn by DeSantis’ Push to Eliminate Property Tax

Raul Gastesi, co-founder of Gastesi Lopez Mestre & Cobiella, is a longtime Florida resident with 35 years of experience. real estate And government relations told Fox Business: “I see more and more home buyers moving from states to Florida from states like New York, New Jersey and California, and it’s not just the weather.”

“These states’ $600,000 homes can come to homes that cost around $8,000 to $13,000 in property taxes. In Florida, the same home has a tax bill approaching $4,900, before considering the Homestead exemption,” he explained. “The Florida Homestead exemption can reduce the taxable value of a home up to $50,000, which could further increase the annual savings of full-time residents.”

If Florida lawmakers or voters follow a proposal to end the state’s property tax, the $4,900 property tax bill will be eliminated, saving homeowners about $408 a month during the year.

Gastesi added that Florida’s lack of state income tax saves households making $150,000 a year, from around $8,000 to $10,000 a year, “If you add everything together, you can save $10,000 to $20,000 a year by simply relocating.”

Florida’s commercial real estate boom is being driven by financial and technology executives who have moved since the pandemic

He also placed emphasis on debates over exclusion. Fixed Asset Taxnote that while it saves homeowners money, it can pose other challenges to fund the government.

“There’s been an increasing number of talk about eliminating property taxes for primary homes. If that goes forward, it could dramatically reshape the financial equation for homeowners, making the home even more attractive here,” Gastesi said.

“But the big question is how the state will compensate for its lost revenue. If the solution becomes a higher sales tax, it could turn the financial burden into a low-income household.

Bill Harris, former CEO of Turbotax and PayPal, analyzed changes to the Fox business by modeling his own moves from Redwood City, California. Miami BeachFlorida is based on the hypothesis that he is a single taxpayer with a $200,000 salary and a $1 million investment portfolio.

Desantis says Florida may need “immigration tax” as socialist NYC mayoral candidates threaten the country

“The marginal tax rate in California is 9.3% compared to 0% in Florida. The federal and state gross income tax bill, including taxes on my investments, could be around $68,000 in California and $48,000 in Florida,” Harris said.

He said it had an average two bedroom house. Redwood City It costs around $1.8 million, but in Miami Beach it costs around $750,000. This leaves around $1 million remaining after the move, resulting in a saving of about $10,000 a year in property taxes. Miami Beach’s 2% property tax rate is higher than Redwood City’s 1.2%, but a low value two-bedroom home will save you about $5,000.

Harris added that if Florida abolishes property tax, it means savings another $14,000, but he said that doing so would require a constitutional amendment along with replacing the sales tax on its revenue stream.

He also said that living costs about 50% higher in Redwood City than in Miami Beach could result in a cost-of-living savings of around $10,000.

Click here to get your Fox business on the go

“To add that, a one-off $1 million windfall saves about $45,000 a year in expenses and taxes. Trading HomeHarris said.