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The state of Florida experienced a huge run up of property values and property taxes over the past few years. Of course, most of this new tax money has been squandered by governmental agencies who looked to buy votes with the new found largess.

Now as the market has softened and the convoluted property tax structure in the state strangles, people are getting stuck in their present homes and people looking to buy are going elsewhere because the combined price and property tax burden is too extreme for new buyers to cope with.

Shaun McLane was at a meeting with the Governor of Florida, Charlie Crist, and recorded it. The meeting was discussing legislation the state is looking into to roll back property taxes on a statewide level and allow a greater homestead exemption. Click here for the link to see his post and video.

According to sources, if the legislation were approved, the tax savings for homeowners would be between 41 and 85 billion dollars and would also provide a needed boost to the lethargic housing market in Florida.

“The numbers will take care of themselves,” said Sen. Mike Haridopolos, R-Indialantic, who is leading the Senate side in a joint conference committee. “If we have good policy, we’re going to have tax reform and tax relief. The only thing that’s going to bog us down now is politics.”

So far, the Senate’s idea of good policy hasn’t included higher sales taxes. The Senate has passed a package of legislation designed to cut property taxes by $12.36 billion in the first five years mainly through a tax rollback, freeze and cap.

The House has proposed increasing the statewide sales tax from 6 percent to as much as 8.5 percent to partly offset huge property tax cuts for homesteads.

If voters approve a proposed state constitutional amendment, school property taxes required by the state would be removed from homesteads in exchange for increasing the sales tax by a penny per dollar. via Business Week

Related posts:

1. Are Property Tax Payments An Indicator Of The Housing Market?
2. Local Municipalities Losing Millions in Property Tax Revenue
3. Florida Real Estate Community Tries To Make $8,000 Tax Credit Part of Down Payment
4. Fannie Mae Has 5 Billion Worth Of REO Property
5. International Vultures Flock To Florida Real Estate