Any update on Florida's insurance/tax issue?

[kwflconch]

Originally Posted by House4Sale

What an insult. I thought it'd be at least $100+.

The average saving for homeowners will be $174 a year, on Jan. 29th, when we vote for super exemptions, and it gets approved, homeowners will be saving thousands of dollars a year.

[yukon]

I honestly don't understand why the larger cities are having budget problems. When you consider the huge number of home sales and refi's last year, and the fact that those properties are now taxed at the newer, higher price, the increase in taxable value on the tax rolls should offset some of the cuts in the tax millage being threatened by the state legislature.

[bale002]

Originally Posted by Josh2020

Has there been any new proposals for the severely high insurance and property tax? I want to move to Florida, but will not if it continues to be how I hear it is (high taxes, very high insurance). List any new proposals if you can.

The only insurance proposal was to roll back or delay one-off scheduled increases. Some people received a modest reimbursement, most others avoided a scheduled increase due last January, I believe. That's it. Everyone is vulnerable to future increases. There are things you can do to "hurricane-proof" your home to reduce the bill. It is possible to shop around, but choices are limited. One creative solution is to call Lloyds of London.

As for property tax, nothing substantial has passed so far. Taxes have for the moment been frozen at 2005 levels (the peak of the housing price bubble). Some people will receive some modest savings, as you have been reading.

There is a proposal that will supposedly be put before a State-wide ballot in January 2008 known as the super-homestead exemption.
If passed, the new exemption would cover 75% of the first $200,000 of value and 15% of the next $300,000. The maximum super exemption is $195,000.
All homesteads will receive at least a $50,000 exemption. People with the old Homestead exemption may choose to keep it. The proposal does not address non-homesteaded properties.
An example. If you buy a $400,000 homesteaded house now, your annual property tax bill will be around $8,000 with annual increases capped at 3%. If the super exemption proposal passes, it would be around $5,500. This is based on a 2.25% millage rate, it may vary.

But, you know, the heart of the tax problem is the inflated buy prices, pumped up by years of too easy credit and lax credit standards. These conditions are slowly coming to an end. If buy prices come back down in line with sound economic fundamentals, the tax problem resolves itself. However, there are powers that be that are trying to prevent this from happening, for various reasons.

As for insurance, as tallrick mentioned, this to a large extent depends on further hurricane strikes. If another one (or two) strikes, the sky is the limit. If not, the whole thing may blow over, but not for several years.

There are individual houses and regions of Florida where buy prices are lower than the stated averages for some of the more expensive counties. It all depends on exactly where you want to go and your financial situation.

Good luck!