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points by justindz 1 day ago | 0 comments

Florida passed their ballot initiative (https://www.msn.com/en-us/money/other/what-the-new-florida-h...) to begin exempting non-school portions of property tax (a bit over 1/3 of state revenue). This is a concern in my industry, which derives budgets primarily from property taxes. But, more generally: what is the plan for the revenue shortfall? Any Floridians have insight? Does FL not need this money, assume they will make it up in a sales tax because of increased disposable income, or they are just fine with the services based on this revenue getting rinsed?

[–] Den_VR 1 day ago

Its a homestead exemption. Folks just living in their homes will be under less pressure to sell. Folks renting out homes will continue to pay full tax. With the behavior of property valuations, this seems rather humane.

[–] justindz 1 day ago

My question was about the impact to state revenues and associated services. Are you suggesting that because it doesn't apply to "investment" homes, the actual impact to state coffers will be minimal?

Not being nitty, just didn't follow how your point connected and wanted to make sure I understood it.

[–] Den_VR 1 day ago

I suppose my point is mainly to look at the equation from the other side. Sure, “the market” might be more efficient if people without sufficient income, have to leave their houses that are high valued and that allows for more affluent people to live in those homes and pay more taxes.

But we might say it does not feel very humane

[–] Timon3 1 day ago

I didn't read GP as expressing any explicit judgement - it's a simple question of the political reality, no matter what position you take. If the state takes in fewer taxes, the shortfall must be balanced by some combination of:

- increases in other taxes/other income sources

- decreases in services

- public debt

As someone who shares your view that housing shouldn't be purely market-driven, IMO it's especially important to consider the other side of the equation, because some people invest a lot of time, effort and money to prevent the first option.

One "obvious" income source would be to hire more tax collectors and let them focus on the largest conglomerates, but not like that's ever gonna happen.

[–] hnburnsy 1 day ago

Doesn't affect the state just localaties like counties and cities.

[–] techlover14159 19 hours ago

This will push housing providers (landlords, especially those who own 1-4 unit properties, primarily mom and pops) to sell to those who want to live there.

This means the supply of 1-4 unit homes will go down over time for those who want to rent.

[–] HDThoreaun 1 day ago

Around 45% of FL property wealth is a homestead. Thats a huge amount of money the state will be leaving on the table. Just like prop 13 the magnitude of the tax breaks will grow and grow and grow until eventually newcomers are fucked and incumbents form a landed gentry. Florida will face a revenue crisis because of this but itll be a decade+ from now

[–] hnburnsy 1 day ago

Options are increase millage rate, increase user fees, spending cuts, state revenue sharing, and sales tax increase (limited and must be voter approved)