Ron DeSantis Faces Rebellion Over Florida Housing Bill: 'This is Peanuts'
In an aerial view, homes sit on lots in a neighborhood on January 26, 2023 in Boca Raton, Florida.
Even Floridians who support a move to lower property taxes in the state say that the proposed bill, signed by Governor Ron DeSantis last week and on the ballot in November, is too little compared to the skyrocketing housing costs they're facing.
Ken Shandelson, who spends over half of the year in Fort Myers and about five months in Virginia Beach, told Newsweek that his family agrees with the amendment to the state Constitution that could increase Florida's homestead exemption. However, he said that the move is "peanuts compared to our insurance and [homeowners association] wild increases."
The Sunshine State is currently facing an ongoing insurance crisis, as premiums have skyrocketed in the past couple of years due to a combination of excessive litigation, widespread fraud, and the heightened risk of natural disasters. Last year, homeowners in the state paid $6,000 per year in home insurance, according to data from the Insurance Information Institute (Triple I)—the highest rate in the country.
Shandelson said that he "would prefer the legislator focus on these two issues" rather than lowering property taxes. Newsweek contacted DeSantis' spokesperson for comment early on Friday.
Under the current law, Florida homeowners are allowed to lower the assessed value of their home by up to $50,000 and reduce their property taxes accordingly, as long as it is their primary residence. House Bill 7019, which passed the Republican-led state legislature earlier this year and was signed by DeSantis last Friday, would increase the exemption, granting qualifying homeowners an additional sum of up to $25,000 on top of the $50,000. The exact value will be based on the Consumer Price Index for All Urban Consumers (CPI-U) so that homeowners won't suffer from the rise of inflation.
The additional exemption won't be applied to levies imposed by school districts and won't benefit renters. For Bob Wells, a 64-year-old resident of Walton County, this is a source of concern.
"First, this could negatively affect other government entities that provide services, such as independent districts," he told Newsweek. "Secondly, if it is such a great idea why exclude schools or have a state-funded slush fund to make up the loss for smaller more rural areas that will be negatively impacted, and how long will that assistance be available?"
The Florida government has already set aside funds to support counties, mostly rural ones, which are expected to see a significant drop in revenues should the amendment be introduced.
The bill will be presented to Florida voters in the form of Constitutional Amendment 5 and will need the backing of 60 percent of voters to pass.
Donna M., a 74-year-old resident of Osceola County, commented on HB 7019 getting on the ballot telling Newsweek that "this is a 'vote-getting mechanism' only."
A Republican registered voter, Donna M. said: "Our state needs so much infrastructure repair due to neglect and new buildings only. The most important part of the bill is the commitment to replenish counties and municipalities given up by the relief."
"This is another way for the state to remove power from the counties and municipalities. Our local governments would become welfare recipients," she said, adding that "the entire bill" is mentioned "so people can make educated decisions."
David Thompson, a resident of Tampa, told Newsweek he "will absolutely support" the bill when it is on the ballot in November. "I bought my primary residence in 2021. My homeowner's insurance went way up, my property taxes went way up, and I got added to a flood zone by 20 feet. I need help," he said.
When Thompson bought his current home in 2021, the property was not in a flood zone, but in an area that hadn't flooded in over 100 years. "The following year, they moved the flood zone boundary to include my house by about 40 feet. My flood insurance went from $0 to $966/yr," he said.
When Thompson purchased his home, his property tax was calculated based on the previous assessment, which he said was only $1,900 a year. As the purchase price was more than double the prior assessment, his property taxes ballooned.
"I didn't have a homeowner's exemption in the first year and my real estate taxes soared, because, in Florida, the real estate attorneys don't automatically file a homeowner's exemption, like they do in other states," he said. "If you miss the deadline, you cannot appeal until the following year. I qualified for the loan based on $1,900 in annual real estate taxes, then my first year without a homeowner's exemption went to $6,000 per year. Now I pay $4,900 per year with the homeowner's exemption."
While Thompson admits that money is an important issue as he approaches retirement, he said that the increase in property taxes is not what really bothers him. What's worse, for him, is that he feels no investment has been made into his city, Tampa.
"What bothers me most is the lack of improvements in areas which have now provided huge increases to the city's property tax revenue," he told Newsweek.
"I live in the gentrified neighborhood of South Tampa near the MacDill Air Force base, many homes of which had retired military personnel. In the last 10 years, home values have gone from $70,000 to over $400,000," he said. "Despite getting significantly more tax revenue, the city has not put any money into this neighborhood."
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