THE END FOR FLORIDIAN PROPERTY TAX?

Weeks after approving measures to reduce the burden of property insurance on Floridian householders, the Sunshine State’s lawmakers are turning their attention to property taxes – with the potential to do away with them altogether. This is the equivalent of UK abolishing council tax!

Under proposals currently being studied by the state legislature, Floridians’ skyrocketing property tax burden could be removed at a stroke, in exchange for an increase in the state’s sales tax from six per cent to 8.5 per cent  - which would make it the highest in the USA.

The proposals, supported by Governor Charlie Crist – who has described property tax as “the second part of the double whammy that has hurt the pocket books of Floridians” – would be split over two stages. Currently in preparation is a new bill which would reduce property taxes by approximately 20 per cent, providing “immediate relief to the property owners of Florida,” according to state congressman Michael Grant. This bill could take effect as early as July, according to local press reports.

The second, more radical stage, which would see the tax scrapped altogether, would have to be voted on by the Floridian electorate as it would involve an amendment to the state’s constitution. No timetable has been set for the plan, which is however unlikely to be introduced this year.

“If this constitutional amendment passes, every homestead property, every taxpayer in Florida, will not receive a trim notice, meaning they will not see a tax bill any more,” said state congressman Ray Sansom.

When Can a Vacation Home Qualify for 1031 Exchange?

We frequently receive inquiries as to whether or not vacation properties qualify for exchanges. Section 1031 requires that both the relinquished and the replacement properties be “held for productive use in a trade or business or for investment.”

In the context of vacation properties, this “trade or business” or “investment” purpose may exist, but there may also be personal use of the property. When there is such a dual or mixed use, it is not always clear as to whether the property qualifies for Section 1031 purposes.

What are the requirements for an IRC 1031 tax-deferred exchange?

Regional Overview, Florida, USA.

With 360 days of sunshine a year and over 1,000 miles of beautiful beaches, Florida offers a superb lifestyle.

Florida is rewarding buyers with a strong rate of annual capital appreciation while promising a good potential income from a tried and tested rental market. Soaring visitor figures and a burgeoning second home market are proof that Britain’s long-standing love affair with Florida is as passionate as ever, especially in the Orlando region where the lure of Mouse Magic reigns supreme. Visitors in need of R&R will find Florida oh-so relaxing, while those seeking roller coaster thrills and spills will soon discover some of the finest theme parks on the planet.

Why Florida?