Florida law currently caps taxes assessed on commercial and rental property, but that may end come January 1, 2019.

You might be thinking “why do I care because I rent my home or apartment and don’t own either commercial or rental property?” Consider this: if your landlord has to pay higher taxes, guess whose rent

On December 20th, 2017, President Trump stood outside the White House and announced that Congress had passed the Tax Cuts and Jobs Act (“Tax Act”), the most thorough overhaul of the federal tax code since the Reagan administration. Like American taxpayers everywhere, most Floridians are wondering:

How will this tax legislation affect me?”

Because the

In staunchly conservative Collier County, Florida, tax increases are rarely popular. But when the increases are to the bed tax (a.k.a. tourist development tax) and the sales tax, the impact is a little easier to digest. This is mainly because, as compared to tax increases on real property, the bed tax and sales tax do not have uniform impact on owners of real property.

The Board of County Commissioners, in its present form since Commissioners McDaniel and Solis were seated in late 2016, took bold steps in 2017:

  • to diversify the county’s economy through adoption of a bed tax increase;
  • to address overdue improvements to infrastructure via a 2018 voter referendum that would increase the County’s sales tax by 1%; and,
  • to solicit input on potential creation of a stormwater utility.

Bed Tax Increase


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The Florida Legislature recently delivered a small win for the business community with Florida House Bill 7109. Effective January 1, 2018, Florida Statute 212.031(1)(c) is amended by lowering the sales tax levied against commercial tenants from 6% to 5.8%. A more significant decrease would have been better, but commercial tenants will take what they can

tax.jpgWith Florida’s 2017 Regular Session officially adjourned on May 8, 2017, only 203 bills (of the total 1,606 general bills filed) survived both chambers of the Legislature.

From the handful of legislation that ultimately passed this year, Joint Resolution CS/HJR 21 was enacted. This resolution proposes an amendment to the State’s Constitution that would limit a local government’s authority to assess non-homestead real property for purposes of ad valorem taxation.

Background

Under Florida’s Constitution, ad valorem taxation is expressly reserved to local governments. The state is prohibited from levying ad valorem taxes on real and tangible personal property.

When preparing an annual assessment, the State Constitution also generally requires that all property be assessed at just value (i.e., market value) on January 1st of each year. Thereafter, such assessments are used to calculate property taxes to fund counties, municipalities, district school boards and certain special districts.

Florida’s Existing Limitations on Assessments for Non-Homestead Property


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matthewsimmons1We recently had the privilege of sitting down with Matt Simmons, State-Certified Residential Real Estate Appraiser and partner at Maxwell Hendry & Simmons.  Given the importance of the real estate market to our community, it is nearly impossible to distill the wealth of data Matt and his firm have in a short blog. But, it’s always fun to try!

Q: You have great data to share, and you mentioned that often the data can be skewed if viewed in isolation. What do you see as the most misunderstood information reflecting the SWFL market?


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This year, on two separate election days, Florida voters had — and will have — the opportunity to vote on two different constitutional amendments.

(Editor’s Note: At press time, the August 30th primary had yet to occur. However, it has since been reported that Amendment 4 was approved by nearly 73 percent of Florida voters at the primary, thus the measure will take effect on January 1, 2018, and expire on December 31, 2037.)

Amendment 4: Florida Tax Exemptions for Renewable Energy Measure

By way of background, the Florida Constitution currently provides for local government ad valorem taxes on real property and tangible personal property, assessment of property for tax purposes, and exemptions to these taxes. Section 4(i) in Article VII of the Florida Constitution also provides that the legislature may prohibit the consideration of the installation of a renewable energy source device in the determination of the assessed value of real property used for residential purposes.


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11745456_10204830522498328_4583304138522897113_n(1)In City of Fort Pierce v. Treasure Coast Marina, LC, No. 4D14-3064, 2016 WL 3087680 (Fla. 4th DCA May 31, 2016), the Fourth District Court of Appeal addressed whether a marina that was owned and operated by a municipality should qualify as a traditionally exempt “municipal or public purpose” for ad valorem tax exemption purposes under Article VII, Section 3(a) of the Florida Constitution.

A Brief Look at Florida’s Constitutional Ad Valorem Tax Exemption for “Municipal or Public Purposes”

According to Article VII, Section 3(a) of Florida’s Constitution, “[a]ll property owned by a municipality and used exclusively by it for municipal or public purposes shall be exempt from taxation.”


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