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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (79616)	6/15/2007 9:58:25 PM
From: tdl4138	Read Replies (1) \| Respond to of 306849

Has anyone actually been following the homeowners insurance fiasco in Fla lately? Last year, my premium was raised because the insurance company raised the value of the "structure" by $45k. Of course the premium went up accordingly. This week I received the renewal and they've increased the value of the structure another $65K along with the premium. When I called my agent and said the property including the land wasn't worth anywhere near the company's value she said she agreed...and already knew that. But the value that was now being used was "formulated" by the insurance company and I should be glad that I was being offered a renewal.... The next statement was the shocker....I should be happy with the policy because I was still being charged at the old rate. It seems that insurance companies can't raise rates....so they are increasing valuations. End result is still a fatter premium. I wonder in the event of a hurricane or total loss what the odds are of ever seeing the "formulated" valuation I'm paying for...

To: John Vosilla who wrote (79616)	6/16/2007 12:14:49 PM
From: Jim McMannis	Respond to of 306849

From FAR. Notice when this kicks in. hummm ----------------- The Legislature adjourned Sine Die at 6:28 pm June 14th bringing the 2007 Special Session on Property Tax Reform to a close. Both the House and Senate passed all three bills making up the property tax reform package. The package includes a statutory rollback and cap of property tax rates, a proposed constitutional amendment creating a "super homestead exemption" and a bill designating the upcoming January 29, 2008 presidential preference primary as the date for Floridians to vote on the "super homestead exemption" amendment. FAR is very excited about the work that the Florida Legislature was able to complete in 3 short days! Below is some additional detail on what is included in the final deal. We had an amazing response to our call-to-action and Legislators assured us that this is only the beginning. They will continue to work on reforms that we consider the top priorities such as “highest and best use.” The agreement consists of a two-tiered approach to achieve immediate relief and long-term reform. The combined elements of the plan offer $31.6 billion in tax relief over the next five years. This is touted by House and Senate leaders as by far the largest tax cut in the history of Florida. 1. The Statutory Component – Immediate Tax Relief Cities and counties must lower their tax rates a certain percentage based on their past taxing conduct. This component of the plan offers $15.6 billion of tax relief over five years, with savings beginning this year. The statutory component affects all properties in a positive way (homestead, non homestead, commercial). • First, all cities and counties must adopt the rolled-back rate for the coming fiscal year. In other words, tax levies for FY 2007-08 must be equal to tax levies for FY 2006-07, excluding taxes levied from new construction. Then… • After adopting the rolled-back rate, the bill requires each city and county to further reduce taxes based on their recent taxing history (from 2001 to 2006, the period in which property values rapidly increased). To delve into this further, there will be five tiers. Between 2001 and 2006, if a County had an average annual tax levy increase of a certain percentage then they’d have to roll back a certain percentage more. So, if their tax increase was below 5% the cut is 0; over 5 to 7% tax increase the cut is additional 3%; over 7 to 9% tax increase the cut is 5%; over 9% to 11% the cut is 7%; and over 11% tax increase the cut is an additional 9%. The City cuts are similar. The bottom line is that those counties and cities that increased taxes at a faster rate than the statewide average must offer larger tax cuts. Those that modestly increased tax levies will in turn sustain smaller tax cuts. • Beginning in 2008-2009 and every year thereafter, the bill requires all local ad valorem taxing authorities except school districts to set millage rates in accordance with the rolled-back rate, adjusted by the annual growth of Florida personal income. A local governing authority may override this cap requirement as set forth in Section 5 on page 13. 2. The Constitutional Component – Long-term Reform The constitutional amendment cures the inequities in the property tax system by transforming Save Our Homes through a new “super” homestead exemption. The new exemption covers 75% of the first $200,000 of homestead value and 15% of the next $300,000, with all homesteads receiving at least a $50,000 exemption. Current homestead owners will be given a choice as to whether to keep their benefits and assessment cap under Save Our Homes or to use the new super exemption. The bill also authorizes a $25,000 Tangible Personal Property exemption and allows targeted relief for affordable housing, low-income seniors, and working waterfronts. This component offers $16 billion of tax relief. 3. The Special Election This bill authorizes a special election for #2 above. Voters will have the opportunity to adopt the proposed constitutional amendment during the presidential preference primary on January 29, 2008. If voters approve the amendment, it will lower property tax bills in 2008. If the vote on the constitutional amendment is delayed until the general election in 2008, the reforms will not take effect until tax bills are calculated in 2009.