Florida’s real estate bubble: We may now know when it will pop
Every bubble eventually pops. In real estate, the million dollar question is always, when? Many Florida property owners may be surprised to find out that a very important vote, taking place this coming November, has the potential to impact the answer as to when our current bubble may implode.
The vote has to do with an artificial property tax cap that was signed into law 10 years ago. That 10 percent cap for non-homestead properties, approved in 2008, will once again be on the ballot in November. If it is not approved by a supermajority (60 percent) of the voters, a dramatic disparity of taxes will occur that will have a myriad of consequences.
Florida law defines a non-homestead property as a property not used as a primary residence, such as rental properties, second homes and commercial properties. The law has kept those property taxes artificially low, regardless of how much their true real estate value increased over the past 10 years.
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Barry Sharpe, Miami Herald.