Brevard County Real Estate News, Melbourne Florida 32904 homes

Legislature 2007

TALLAHASSEE –- May 4, 2007 – 4:13 p.m. –- Let’s start with the issue most on your mind: property tax relief.

By now you’ve no doubt learned that the Legislature suspended negotiations on Save Our Homes portability, rollbacks and other property tax reform proposals until next month when lawmakers return to Tallahassee for a 10-day special session.

Several words come to mind.

Disappointing? Yes.

Derailed? No.

“We’re going home to continue to work on it,” said House Speaker Marco Rubio (R-Miami). “We would not call dates (for a special session)...unless we were confident that we would come up with something that would not just pass but work. But drafting something to go on the ballot (can't be rushed).''

House and Senate leaders called the special session Wednesday afternoon when it became clear that a deal couldn’t be worked out in the remaining 48 hours of the regular session. "The issue is too important to our state and to our taxpayers for us to give them a product they would not be proud of," said Senate President Ken Pruitt (R-Port St. Lucie) . "We have laid a great foundation."

Pruitt noted that both sides have already agreed on two FAR-supported tax relief measures—$25,000 exemption on personal intangible property for small businesses and some form of Save Our Homes portability. Details of the portability discussions were not released.

30 days to talk the talk
A one-month waiting period leading to a special session of the Florida Legislature gives Realtors an opportunity to meet their lawmakers locally and push for substantial property tax relief. It also gives lawmakers time to consider the focus exclusively on the issue.

“It is my hope that a special legislative session devoted entirely to this issue will be able to deliver even more comprehensive tax reform than what could be negotiated in the waning hours of the regular session,” says FAR President Nancy Riley. “The Legislature will be able to roll back rates immediately and, if we remain strong, we will get our special election this year for portability and other constitutional issues that must be ratified by the voters.”

Special session at a glance:
When: June 12-22

Original House plan: Rollback taxes to 2001 levels; replace property taxes with a 2.5 percent state sales tax increase (constitutional amendment. Projected savings: $50 billion over five years.

Original Senate plan: Rollback taxes to 2006 levels; allow for Save Our Homes portability; $25,000 exemption on intangible property; double the homestead exemption for first-time buyers. Projected saving: $14 billion.

What sources say has been agreed to so far: Cut property taxes by about $20-25 billion over five years; no sales tax increase; some form of Save Our Homes portability.

How to send an email to your legislator: http://floridarealtors.org. Visit the Legislative Center.

Progress report: Realtor issues advanced this session

Property insurance: Legislators made is easier for certain property owners to obtain insurance from Citizens Property Insurance Corp. and raised the ante for others. Citizens, the state’s insurer of last resort, is now Florida’s largest insurer with 1.3 million policyholders. SB 2498 by South Florida Sen. Rudy Garcia (R) would allow property owners into the Citizens pool if the only insurance they could obtain on the private market was 15 percent more expensive than what they would pay Citizens. The current threshold is 25 percent. The measure would also prevent private insurance companies from setting off their Florida operations in a separate, Florida-only company (known as PUP companies), and freeze Citizens rates through 2008; effective Jan. 1, 2009, Citizens would again be allowed to raise rates. Legislation passed during the special session on insurance last January freezes rates through the end of 2008.

Another bill, HB 7057 by Rep. Trey Traviesa (R-Tampa) , requires homes valued at over $750,000 and located in high-risk zones to install opening protections effective July 1, 2008, if they seek a building permit for work estimated at $50,000 or more. By Jan. 1, 2009, all homes valued at over $750,000 in high-risk zones must be fitted with opening protections to remain eligible for property insurance coverage through Citizens. The goal is to “harden” homes insured by Citizens (which all policyholders in Florida support financially), thereby helping reduce some of the risk in the event of a devastating storm. The plan also calls for free inspections of 400,000 single-family homes and provides grants and loan to certain homeowners so they can make improvements that strengthen their home against storms.

Housing trust funds. More of the money generated by a portion of documentary stamp taxes for the William E. Sadowski Affordable Housing Trust Funds will be allocated to state and local programs. The state budget provides $393.4 million for housing programs — down from $433 million set aside last year but still $150 million more the cap imposed by the 2005 Legislature. Unfortunately, legislators failed to remove the $243 million cap on the funds, a move sought by affordable housing advocates, including FAR, citing a lean budget year.

On a related note, lawmakers approved HB 1375 by Rep. Mike Davis (R-Naples) , a long-time advocate of full funding of housing trust funds and other statewide affordable housing programs. Among other things, HB 1375 would require local governments to adopt by July 1, 2008 a workforce/affordable housing plan into the local comprehensive plan. Failure to do so would prevent the local government from receiving state housing grants.

More staff positions at the Division of Real Estate. The state budget also appropriates money for seven new employees at the Division — four full-time and three part-time. This should go a long way toward improving services to Realtors and protecting the public.

Also approved this session:
• SB 2234 by Sen. Steve Wise (R-Jacksonville), which requires home inspectors, mold remediators and mold assessors to be licensed by the Department of Business and Professional Regulation. Effective July 1, 2010, if signed by the governor.
• HB 1277 by Rep. Pat Patterson (R-DeLand), which limits the financial penalty a landlord can collect when a tenant breaks a lease to two months of rent. The bill only affects leases of less than a year. Effective immediately if the governor signs it.
• HB 7163 by Rep. Carlos Lopez-Cantera (R-Miami) which allows real estate licensees to earn 3 hours of CE credit for attending a Florida Real Estate Commission meeting. Effective immediately if the governor signs it.
• SB 1824 by Sen. Mike Fasano (R-New Port Richey) , which places numerous disclosure and education requirements on mortgage brokers and lenders to help protect consumers during the mortgage loan application process. More importantly, the bill includes additional enforcement and investigative tools for prosecuting mortgage fraud. Effective Oct. 1, 2007, if signed by the governor.
• HB 111 by Rep. Bill Galvano (R-Bradenton) , amends the definition of “primary title services” and “related title services,” and codifies a civil court case that permits a portion of a title insurance premium to be rebated. Effective Oct. 1, 2007, if signed by the governor.