Potential Property Tax Elimination Impact on Disney Vacation Cost???

[iwannabdduck]

I see in the news this week that Florida is considering abolishing property taxes in the state. Not sure how realistic that is, or what would make up for that lost tax revenue for cities, schools & local governments, but I'm also left wondering what, if any, affect that might have on the cost of going to Walt Disney World. No doubt Disney pays millions every year to Florida in property taxes, so my guess is that would amount to a big cost savings for them, just like other Florida home owners might enjoy. But then I also read that the governor allegedly suggested that Florida could "offload" this tax burden onto tourists and non-residents. Going to Disney is getting incredibly expensive these days as it is. But if the good governor is going to make out of state people pay Disney's property tax bill (thru higher "tourism" taxes, or whatever) in addition to what we pay for park admission tickets, etc., that bad cost trend is only going to get worse for non-residents. I'm beginning to appreciate why my wife sarcastically says that looking at old Disney photos in the scrap book from trips in years gone by is more fun than going there today. Any Florida residents got any insight into this new possibility? Thanks.

 

[gottalovepluto]

Big political push right now and you don't have to be from FL to know that lol. But realistically the money ain't coming out of thin air. If it doesn't come from prop taxes it'll come from somewhere else, either increased current taxes or new taxes.

Black horse- home owners don't pay prop taxes but timeshares and commercial real estate does. That's where the real dough is at anyway...

 

[HopperFan]

I own a Florida home.

I believe in order for this to happen it has to go to the voters of Florida and must pass with 60% to make the change, a constitutional amendment. I do believe this is being said by the Gov now because rumor is he will run for Senator and this would be a way to woo voters.

To replace some the Florida Policy Institute says they will have to double the sales tax which will definitely hurt tourists who already pay tourism taxes on top of sales tax. So yes, that hotel bill will be impacted, especially since the Governor said that TOURISTS will make up the money, so will tourism tax on hotels also go up?

I own a Florida home. My real estate taxes are OBSCENE! They have doubled in 9 years. But without these taxes how are we paying for the school system, the fire department, the police department, the road repairs, the water system repairs and all aspects of our local governments?? If you don't live in a tourist district you literally will not collect enough sales tax to maintain even the basic of services let alone support schools.

Would I love to not pay this money ~ YES, I don't have kids in school, why should I care? Do I think it's a good idea? NO! I would appreciate it getting under control though AND INSURANCE!!!

Where will they get $43 Billion each year? Governor said Tourists.

Big political push right now and you don't have to be from FL to know that lol. But realistically the money ain't coming out of thin air. If it doesn't come from prop taxes it'll come from somewhere else, either increased current taxes or new taxes.

Black horse- home owners don't pay prop taxes but timeshares and commercial real estate does. That's where the real dough is at anyway...

I think this would be the direction I would expect it to go. How do you eliminate commercial real estate tax?

 

[iwannabdduck]

Thanks guys, I appreciate the input.

Politicians sure love to spend other people's money, and may feel good passing the cost on to out-of-state tourist, cause they don't vote in local elections. But they do vote with their wallets. And when I do the math, it's beginning to look like Florida is collecting more dollars from me each day I'm at WDW (from all the various taxes I pay on park tickets, resort rooms, & food) than what Disney charges me to go into one of their parks. Looks like a classic case where calm heads need to prevail for the good of everyone instead of political ambitions. Schools, police, fire, road work, etc are just as important in Florida as they are where I live (and yes property taxes here have more than doubled as well since I bought my home ). Lets hope for the best.

 

[tvguy]

I own a Florida home.

I believe in order for this to happen it has to go to the voters of Florida and must pass with 60% to make the change, a constitutional amendment. I do believe this is being said by the Gov now because rumor is he will run for Senator and this would be a way to woo voters.

To replace some the Florida Policy Institute says they will have to double the sales tax which will definitely hurt tourists who already pay tourism taxes on top of sales tax. So yes, that hotel bill will be impacted, especially since the Governor said that TOURISTS will make up the money, so will tourism tax on hotels also go up?

I own a Florida home. My real estate taxes are OBSCENE! They have doubled in 9 years. But without these taxes how are we paying for the school system, the fire department, the police department, the road repairs, the water system repairs and all aspects of our local governments?? If you don't live in a tourist district you literally will not collect enough sales tax to maintain even the basic of services let alone support schools.

Would I love to not pay this money ~ YES, I don't have kids in school, why should I care? Do I think it's a good idea? NO! I would appreciate it getting under control though AND INSURANCE!!!

Where will they get $43 Billion each year? Governor said Tourists.


I think this would be the direction I would expect it to go. How do you eliminate commercial real estate tax?

All relative I guess. Florida property tax rates are ranked at number 20 in the nation. So people in 19 states pay higher property tax rates, and 30 pay less. So I guess it is a "is the glass half full, or the glass half empty" type situation. But low overall taxes are one of the main reasons people move to Florida. https://jamesmadison.org/why-are-people-moving-to-florida/

 

[sam_gordon]

Florida doesn't have income tax though. So that "loss of income" needs to be made up elsewhere. I'm sure one of the ways is through property taxes (explaining why those are high).

If the state eliminates property taxes, that "loss of income" needs to be made up elsewhere. OR state spending would need to REALLY drop.

 

[HopperFan]

All relative I guess. Florida property tax rates are ranked at number 20 in the nation. So people in 19 states pay higher property tax rates, and 30 pay less. So I guess it is a "is the glass half full, or the glass half empty" type situation. But low overall taxes are one of the main reasons people move to Florida. https://jamesmadison.org/why-are-people-moving-to-florida/

First you are using a source that is a biased Florida entity in favor of the state. Their words "FLORIDA’S LEADING THINK TANK IN AMERICA’S MOST IMPORTANT STATE."

But it is all relative to what services you are getting. Florida has failed on so many levels yet continues to take that money. States where taxes are higher tend to have the best school systems in the country and Florida's are abysmal which is why anyone who can puts their kids in private school. My county has one of the best school systems in the state yet a 25 year teacher is making less than my DS in his 2nd year of teaching in another state's top school.

Living in Florida is expensive, from taxes, insurance, rent to groceries and everyday goods. When we travel to FL home we fill the car with groceries and any house supplies we can fit because of the higher prices there.

 

[_19disnA]

Don't live in Florida, but I agree with others that if you reduce the tax in one place, you have to make up for it somewhere else. Money doesn't just 'fall out of the sky' to make up for this short-fall. Sometimes, business and homeowner property taxes are calculated differently. Not sure how Florida currently does that.

Various 'studies' can probably come to whatever conclusion they are trying to push based on the factors they do/don't consider or what particular bias they have. Whether you think Florida did a good/bad job dealing with covid (as mentioned in the above referenced article) seems like something for that new controversial area to ponder. If property taxes are a reason to move to Florida, I wonder if that same group has factored into the equation the huge increase in homeowner's insurance due to the increased severity and greater frequency of major storms/hurricanes? Some insurance companies no longer offer new policies there due to the high risk of major storm damage.

 

[hertamaniac]

I am not sure how it would work for us homeowners. We did just pass the homestead exemption tied to inflation amendment which was long overdue. My home insurance went down. My auto insurance went down. There was no policy changes made.

The governor just did a conference a few miles from my home on the acceleration of widening I-75 to 8 lanes. The growth and traffic have been expanding for a while, but within the past few years (since COVID), it is raging. I could see impact building fees being implemented/increased to help offset a property tax loss of revenue. Tourism would likely get hid the hardest with new fees and/or higher taxes. I would expect even tolls to be fair game for substantial increases (I am not sure if there is a FL resident discount on my Sunpass).

 

[barkley]

Florida doesn't have income tax though. So that "loss of income" needs to be made up elsewhere. I'm sure one of the ways is through property taxes (explaining why those are high).

If the state eliminates property taxes, that "loss of income" needs to be made up elsewhere. OR state spending would need to REALLY drop.

i'm in a state with no personal income tax as well. there are always ways of finding more revenue sources- having upwards (in some cities) of a 10.35% sales tax that for some items is on TOP of additional special taxes such as liquor tax of 20.5% plus $3.778 per liter (or partial prorated amount), $3.025 per pack of cigarettes, and the highest U.S. cannibus taxation at 37%. our gasoline is taxed at $.53 per gallon and we are also one of only 2 states with a B&O tax.

 

[sam_gordon]

i'm in a state with no personal income tax as well. there are always ways of finding more revenue sources- having upwards (in some cities) of a 10.35% sales tax that for some items is on TOP of additional special taxes such as liquor tax of 20.5% plus $3.778 per liter (or partial prorated amount), $3.025 per pack of cigarettes, and the highest U.S. cannibus taxation at 37%. our gasoline is taxed at $.53 per gallon and we are also one of only 2 states with a B&O tax.

I think you missed the point. Florida currently doesn't collect income tax. So that loss of income needs to come from other tax revenues (sales & property). If you eliminate the property tax, how do you make up that income? Increase sales tax (even more than what it already is to make up for no property tax)?

Although, it looks like Florida's sales tax is 6%, which is the same as in my state. So where is the money coming from?

 

[tvguy]

First you are using a source that is a biased Florida entity in favor of the state. Their words "FLORIDA’S LEADING THINK TANK IN AMERICA’S MOST IMPORTANT STATE."

But it is all relative to what services you are getting. Florida has failed on so many levels yet continues to take that money. States where taxes are higher tend to have the best school systems in the country and Florida's are abysmal which is why anyone who can puts their kids in private school. My county has one of the best school systems in the state yet a 25 year teacher is making less than my DS in his 2nd year of teaching in another state's top school.

Living in Florida is expensive, from taxes, insurance, rent to groceries and everyday goods. When we travel to FL home we fill the car with groceries and any house supplies we can fit because of the higher prices there.

This site* lists Florida at number 26 in property taxes. So right in the middle, and less than here in California which is number 19. Which is odd to me because property taxes in California are set by law at 1% of what you paid for the house, The amount of that tax can go up by no more than 2%. Voters can approve bonds that will increase that tax. So people like my wife and I, who have been in our house 42 years benefit. We not only also have income tax, it is the highest rate in the nation. And we also have the highest state sales tax in the nation.
The DIS boards have taught me a lot about teacher salaries and how much they vary across the nation. In the district I live in, a starting teacher right out of college makes $1,500 a year more than I made my highest earning year in a job with the same educational requirements. Not every area is like that. And teaching contracts in public schools here are 9 months, my job was 11 months a year, 4 weeks vacation.



* https://www.rocketmortgage.com/learn/property-taxes-by-state

 

[barkley]

I think you missed the point. Florida currently doesn't collect income tax. So that loss of income needs to come from other tax revenues (sales & property). If you eliminate the property tax, how do you make up that income? Increase sales tax (even more than what it already is to make up for no property tax)?

Although, it looks like Florida's sales tax is 6%, which is the same as in my state. So where is the money coming from?

I get the point, i'm simply saying there ARE other forms of revenue that can be tapped into. my state like florida has no income tax but mine taxes many items at a much higher rate and benefits from b&o taxation. I don't think eliminating property taxes is advisable for any state's budget but it's not my state's #1 form of revenue either.

This site* lists Florida at number 26 in property taxes. So right in the middle, and less than here in California which is number 19. Which is odd to me because property taxes in California are set by law at 1% of what you paid for the house, The amount of that tax can go up by no more than 2%. Voters can approve bonds that will increase that tax. So people like my wife and I, who have been in our house 42 years benefit.

california's property taxes are just oddly computed. I know/lived prop 13 as a homeowner. I paid more in property taxes there in 1999 on a house (then) tax valued at 38% of my current home's tax value vs. what I pay where I live today. the home I formerly owned in california went through a foreclosure and public auction a couple of owners after we sold so the current owners locked in a sales price value of 18% of my current home's tax value-but they still pay more in property taxes than we currently do (gotta love public tax records ).

 

[tvguy]

I get the point, i'm simply saying there ARE other forms of revenue that can be tapped into. my state like florida has no income tax but mine taxes many items at a much higher rate and benefits from b&o taxation. I don't think eliminating property taxes is advisable for any state's budget but it's not my state's #1 form of revenue either.



california's property taxes are just oddly computed. I know/lived prop 13 as a homeowner. I paid more in property taxes there in 1999 on a house (then) tax valued at 38% of my current home's tax value vs. what I pay where I live today. the home I formerly owned in california went through a foreclosure and public auction a couple of owners after we sold so the current owners locked in a sales price value of 18% of my current home's tax value-but they still pay more in property taxes than we currently do (gotta love public tax records ).

Interesting given that Florida's property tax rate is 2-tenths of a percent higher.
I pay $2700 a year, up from $1,010 a year when I bought the house in 1983. The biggest chunk of that increase have been voter approved bonds for schools and parks. They are over half way through tearing down all the existing schools (that were built in the baby boom after WWII) and building new schools on the same sites. The parks, well that is still being sorted out. A lot of groups are fighting for new things........me, I just want them to catch up on the upkeep they have been putting off for 30 years.

 

[barkley]

I was curious cuz we've not gotten our property tax statements for this year as yet so I checked the assessor's site-only $26 per year increase .

 

[TippyThomas]

I think you missed the point. Florida currently doesn't collect income tax. So that loss of income needs to come from other tax revenues (sales & property). If you eliminate the property tax, how do you make up that income? Increase sales tax (even more than what it already is to make up for no property tax)?

Although, it looks like Florida's sales tax is 6%, which is the same as in my state. So where is the money coming from?

To your last question. I've always heard it was generated through the taxes on tourism.

 

[QueenIsabella]

I used to live in New Hampshire, a state notorious for not having sales tax OR income tax. Potential office-holders have to take a pledge that they won't try to add these, if they don't, they have zero chance of getting elected. Property taxes are quite high there. The liquor stores are state-run--that's one source of revenue. They also tax tourist-type stuff, by which I mean hotel rooms and restaurant meals. The fees tended to be high, for things like car registration or a hunting license, that kind of thing. It's the "Live Free or Die" state, so it's a little quirky.

 

[greeneyedchick]

I own a Florida home.

I believe in order for this to happen it has to go to the voters of Florida and must pass with 60% to make the change, a constitutional amendment. I do believe this is being said by the Gov now because rumor is he will run for Senator and this would be a way to woo voters.

To replace some the Florida Policy Institute says they will have to double the sales tax which will definitely hurt tourists who already pay tourism taxes on top of sales tax. So yes, that hotel bill will be impacted, especially since the Governor said that TOURISTS will make up the money, so will tourism tax on hotels also go up?

I own a Florida home. My real estate taxes are OBSCENE! They have doubled in 9 years. But without these taxes how are we paying for the school system, the fire department, the police department, the road repairs, the water system repairs and all aspects of our local governments?? If you don't live in a tourist district you literally will not collect enough sales tax to maintain even the basic of services let alone support schools.

Would I love to not pay this money ~ YES, I don't have kids in school, why should I care? Do I think it's a good idea? NO! I would appreciate it getting under control though AND INSURANCE!!!

Where will they get $43 Billion each year? Governor said Tourists.


I think this would be the direction I would expect it to go. How do you eliminate commercial real estate tax?

I live in Seminole County, near Orlando, but I wouldn't say my property taxes are obscene. The home that I lived in in NJ is now paying $30,000 in property taxes per year. I was paying $25,000 when I lived there. I moved to a similarly priced home here and I'm only paying $9,000. To me, NJ property taxes (if you live in a commuting town to NYC) is obscene.

I don't think it will pass. We don't have a state income tax. They would have to raise the sales tax up a lot to make up the difference. Homeowners in FL can file for a homestead exemption which prohibits their property taxes from increasing more than 2% I think.. It's a fairly fixed, predictable cost. If you make it a sales tax, it's much less predicatable. I would rather know how much to budget for each year than have everything I buy cost a lot more, especially if I were a retiree.

The one thing I would be in favor for would be to charge corporations that rent out homes a much higher property tax since they like to buy up entire developments and artificially raise the cost of housing.

 

[barkley]

If you make it a sales tax, it's much less predicatable. I would rather know how much to budget for each year than have everything I buy cost a lot more, especially if I were a retiree.

interesting. as a retiree I feel just the opposite. with the exception of groceries and medications which most states don't impose sales tax on I feel I have spending control over what I choose to buy so if I feel a price including tax is unappealing I can opt not to purchase. I don't have that kind of choice/control if my property taxes rise.

 

[hrhdhd]

I don't think it will pass. We don't have a state income tax. They would have to raise the sales tax up a lot to make up the difference. Homeowners in FL can file for a homestead exemption which prohibits their property taxes from increasing more than 2% I think.. It's a fairly fixed, predictable cost. If you make it a sales tax, it's much less predicatable. I would rather know how much to budget for each year than have everything I buy cost a lot more, especially if I were a retiree.

Couple of points: FL homestead exemptions are not related to property tax rates. Anyone who owns a house in which she lives (a "homestead") is entitled to a $50,000 exemption, which reduces the assessed value by that amount, then the property taxes are levied on the lower amount. Only the first $25,000 of the standard exemption applies to school taxes. There are additional exemptions for disabled property owners, surviving spouses of first responders killed in the line of duty, and others.

Applying for the exemption (and getting it) does make the home's property taxes subject to the Save Our Homes cap, which means the property taxes can't go up more than 3% a year. I've been in my house for almost 21 years, and I pay several thousands a year less than a person who bought the house today would pay.