Eliminating Florida property taxes: How the real estate market could be affected

Some local governments The idea of ​​eliminating property taxes has been divided to reduce the load of the owners of the house.

Florida’s praise. Ron Data hinted in the social media that he would support such taxes, but that it would require a constitutional change.

Reartor.com’s senior economist Joel Berry said that in the short term, the Florida market can help solve the construction of inventory.

Improving the burden of property taxes can alleviate some of the strains who collide with high housing costs, including tall insurance rates and encourage more people to move according to Bern.

Breaths said there are now a larger number of untreated houses and houses for a longer period of time compared to years Accessibility concernsPeople closed in the mortgage rates closed for a number of years, finally want to move, but not demanded a few years ago, when the state had a hot housing market.

Several states are striving to property tax. You don’t have to “hire from government”

“Real estate tax exemption, in fact, will increase everyone’s home budget and allow people to buy a home house or buy home home or buy their dream home Because it’s property tax “ Said the mouths.

A private house is for sale near Florida Naples. (Photographer: Lisette Morals McCabe / Bloomberg Via Getty Images / Getty Images)

However, this will effectively increase buyers’ budgets and increase a small demand for driving prices in the short term.

This step can negatively affect communities in the long run.

“If local-converted property taxes are replaced by state-level sales tax, they will be less local control for cities and school districts to raise them own tax revenues In a way that satisfies their special needs, “said the brings.

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He said that different municipalities have different demands, “the income of the blanket tax at the state level will be less specialized than the property tax of those requirements.”

Chen Zhao, economic research, which is a leader in real estate broker Redfin, says “there will be a knockout to eliminate property taxes.”

Condo Buildings Line The Beach Sunny Isle, Florida. (Joe Rahed / Getty Images / Getty Images)

For example, Zhao says that buyers can “perceive these local services as schools as a result,” which will also weaken the benefits of eliminating property taxes. ”

Zhao and the brings said that it is not yet clear how the state will raise revenue in replacing property taxes.

If the state compensates it, for example, by raising sales taxes that “it can also be” able to obsact Holie’s migrants in Florida, “said Zhaoh.

The issue of high insurance costs remains yet.

“If the insurance value is sufficiently high enough to compensate for property tax savings, buyers can still hesitate to buy in Florida,” said Zhao.

House for sale in Miami, Florida. (Luke Sharrett / Bloomberg Getty Images / Getty Images)

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But Florid is not the only state that takes into account the programs to eliminate property tax. Fiscal conservative leaders in several states do this, With one Pennsylvania legislator Announcing that the owners of the house should not have “pay” to the government.

“Property taxes are the problem that is not the right party, because in some areas it is greater than in others,” said Ras Ras Ras.

“For me, the” great job “is that people want people to have their homes and do not have to rent from the government to all Pennsylvania,” he said.

Fox Business’ Creares Creitz has contributed to this report.