Retail real Estate Rescue Bid Goes Down After a Major Political Shakeup, WINSTON, Fla.
— The Florida retail real estate market is going to take a hit this year.
The latest reports on the state of Florida retail sector are that the state is going through a major overhaul.
Florida’s retail sector is a big part of the state economy.
The Florida Retailers Association (FRAA) says its in the middle of a major rebuild, but we have no idea what that will mean for the state’s real estate industry.
In an effort to bring a level of transparency to Florida real estate markets, we have compiled a list of the 10 major changes the state will face.
Here is the list of changes, and what impact they could have on Florida realestate.1.
FEDERAL PRIVATE INCOME TAX The Florida Department of Revenue is proposing to raise taxes on Florida homeowners with taxable income above $1 million for the first time in the state.
This is an important step to ensure the state has enough revenue to keep the roads and bridges in place.
The proposed hike will increase the effective tax rate on the average homeowner by 0.7 percentage points.2.
CANCELLED REFORMS ON THE LEFT The state’s Republican Governor, Rick Scott, recently cancelled several tax rebates and other tax credits for homeowners.
“I don’t believe the state needs another tax credit that’s so generous that it would have a huge impact on homeowners and on the economy,” Florida Treasurer Bill Schuette said.
Schuette is correct.
The tax rebate on homes sold to foreign buyers has been cancelled and replaced with a 3.75 percent tax on homes bought by Florida homeowners.
That 3.25 percent tax rate is now the highest in the nation.3.
BUDGET FOR STATE AND LOCAL EMPLOYERS REVENUE The state currently receives $7.8 billion in annual state and local tax revenue from the federal government.
That is $1.5 billion less than the $11.2 billion that the Florida Legislature had planned for in its budget this year, but it is still the largest single source of revenue for the Florida State Government.
The state’s revenues are projected to increase by $4.4 billion this year to $10.9 billion.4.
CREDIT CARD FRAUDULENT BILLING In the last year alone, Florida businesses lost $1 billion on their credit cards.
The Department of Financial Services said that there were more than 100 fraudulent bills that affected more than 4,000 companies.
TECHNICAL DISAPPOINTMENT OF REAL ESTATE BUILDING INFLATION The average Florida home is worth $100,000, but an increasing number of Floridians are looking to sell their homes for $1 to $5 million.
A study by the University of Florida found that about a quarter of Floridian home buyers have either moved out of their state or have been forced to sell, while only about one in ten homes are worth more than $1,000.
These homes have the potential to become blighted by high mortgage rates and rising costs for utilities.
With a rising number of people moving out of Florida, the average price of a home is expected to double in the next few years, according to the Florida Real Estate Association.
PARKING RATES FOR HOUSING AND PROPERTY ARE EXTENSIVE Florida has a long history of residential parking regulations, but a new law will change that.
Under the current regulations, the state only allows up to four parking spaces per home per year.
The new law would allow for as many as 20 spaces per year, up from the current two.
Some of the new parking regulations would include a limit on the number of vehicles allowed in a single home, a ban on using vehicles that do not have a rearview mirror, and a requirement that parking garages be accessible to the public.
THE STATE IS LIKELY TO REBUILD THE STATE WALL FOR THE FIRST TIME IN FOUR YEARS The Department of Environmental Protection is considering the possibility of a new wall at the Florida Turnpike, but the state currently has only plans to build a $2.4 million wall that has been in place for more than 20 years.
Currently, the wall that divides the Turnpikes west from east is just 1.7 miles long and has been used to protect the roadway from damage from storms.
While this new wall would be much taller than that, it still would be a relatively small wall, and it would not be able to contain hurricanes, earthquakes or other natural disasters.
MAKING LOSSES ON PROPERLY-HOUSED REAL