[FL_Expert]

By the way, this is very good for property prices. The tax savings will eventually be offset by higher prices, but those who own now will benefit.

[beach43ofus]

Originally Posted by FL_Expert

That’s great news, I’d save a small fortune each year if they eliminated property taxes.

I think its good news too because it shifts the tax burden more to our 140M tourists/visitors, & away from our full time resident home owners.

I've often thought that even with the bed tax, airport taxes, car rental taxes, that is not enough to cover the infrastructure costs of 140M visitors/yr (& growing).

There's already a system in place to collect sales taxes from retailers, so it would be easy to implement.

[FL_Expert]

Originally Posted by beach43ofus

I think its good news too because it shifts the tax burden more to our 140M tourists/visitors, & away from our full time resident home owners.

I've often thought that even with the bed tax, airport taxes, car rental taxes, that is not enough to cover the infrastructure costs of 140M visitors/yr (& growing).

There's already a system in place to collect sales taxes from retailers, so it would be easy to implement.

Its good for residents, but the main beneficiaries will be major property investors. Imagine the savings from the people/companies who own 1,000+ apartment units in Florida.

[Sunshine Rules]

A consumption tax is a tax on the purchase of goods and services. Whether they do it as additional sales taxes on the sale of goods, excise taxes on things such as gasoline or value-added taxes at points between manufacturing and actual sale, it all comes down to A SALES TAX.

The sales tax in FL is 6%. Most counties tack on between 1 - 2% on top of that. The question becomes -- how much would the state of FL have to raise sales taxes o make up for the shortfall created by not collecting property taxes? 12%? 15%? 30%? Do they have a clue?

Can you imagine what this would do to big ticket items such as cars, boats, appliances? What about your monthly utilities - water, electricity, cable?

What if they decide to dig up their old failed attempt at charging sales taxes on ALL services? Right now a good portion of services are exempt from charging sales taxes.

Will they have to increase the transaction taxes they charge sellers at closing? Probably. How about the transaction taxes when buyers of those homes are also getting mortgages? Again, probably. How high?

How about adding additional estate taxes? Taxes on student loans? On retirement funds?


Consumption taxes are by the nature of them considered regressive in that the rich pay a much smaller portion of their income on those taxes than lower and middle income residents.

I'm all for seeing my property taxes shrink, but not at the cost of regressive consumption taxes on those who are already struggling to make ends meet.

[westender]

I am opposed. The elimination of a tax does not prevent its re-introduction later. History shows that taxes return.

We have no income tax in Florida. Hallelujah! Let's keep it that way. At 6%, our sales tax is adequate. Removing the property tax, which is around 1% in my county, seems foolhardy. We also have several programs (senior tax-increase caps; homestead exemptions) which keep the property taxes under control. "Change" for whatever reason, usually spells a backdoor increase later.

[Dave_n_Tenn]

Since Florida is near the bottom for tax burden on her residents (46 out of 50) ... is this a solution looking for a problem?

[beach43ofus]

Originally Posted by FL_Expert

Its good for residents, but the main beneficiaries will be major property investors. Imagine the savings from the people/companies who own 1,000+ apartment units in Florida.

Perhaps they will be exempted. The law may be written that you must be homesteaded to qualify.

[Ghaati]

Originally Posted by Dave_n_Tenn

I understand the high cost of buying a home and keeping a home. Some people own houses some own homes... there is a difference.

If property taxes disappear then how would the difference be made up? Consumption can change, so that's not a reliable source for a state tax. The only way around it is an income tax.

Maybe a property tax by square footage? Maybe deferred property tax? somewhat like a ARM works.... low tax in the beginning of ownership, then increasing over time. Maybe a lifetime tax ... once the threshold is reached, no more tax.

Florida has a fairly low tax burden overall. We're ranked 46 out of 50 so that's very good. https://wallethub.com/edu/states-wit...x-burden/20494

Increasing property taxes doesn't affect tenants in apartment buildings by much. Income tax doesn't affect anyone who isn't working. Sales tax adversely affects people who are least able to afford to pay for it. Luxury tax just drives people to buy their luxury items in another state. Motor vehicle tax only affects people with motor vehicles, and adversely affects people who most need their cars but can least afford to pay an extra tax on them.

So what's the solution? There's no "solution." However, the people who can -most- afford to pay a tax, in order for the state to get what it needs, should not be provided write-offs and bonus deductions and massive tax breaks, just for the privilege of being - privileged. Removing or reducing those tax breaks won't "solve" the problem but it will reduce it, without causing harm to anyone else.

[beach43ofus]

Originally Posted by 2sleepy

huh? it doesn't say replace it with tourism tax, it says consumption tax and to replace property tax they wouldn't be able to generate enough revenue unless they taxed every loaf of bread, haircut, doctor's visit, , rent etc. It would hit the poor and elderly the hardest. Figure a 20-25% consumption tax on everything and tell us what a great idea it is, oh yeah and don't forget all public utilities, i.e police, fire, ambulance, would have to charge a fee for service and God knows what would happen to schools my guess is that anyone with money will send their kid to a private school while the rest of the population will have to rely on underfunded public education.

140,000,000 visitors came to Florida in 2024. They all spend money, got taxed on some of it, but not enough to pay for the infrastructure they utilized. Do I have a link? No, but it is common sense imho.

Orlando figured this out long ago, which is why they have so many toll roads.

The 10,000,000 Florida homeowners are paying for all the infrastructure being consumed by the tourists, & part-timers. The tourist taxes are coming up short, & the full time property owners are shouldering too much of the cost. That is my opinion, based upon living here for 30+ yrs and seeing how much infrastructure the tourists and part-timers require.

This is a way to get the tourists & part-timers to pay more towards the infrastructure they utilize, while here.

It doesn't say that specifically, but if one reasons it through, that becomes an obvious result. Its not the sole goal of the proposed change, just 1 goal I think they are trying to achieve...they may not come out and say it, becaue they know it could alienate tourists.

I need to see more detail, but at first blush, I like the concept.

[Ghaati]

Originally Posted by beach43ofus

140,000,000 visitors came to Florida in 2024. They all spend money, got taxed on some of it, but not enough to pay for the infrastructure they utilized. Do I have a link? No, but it is common sense imho.

Orlando figured this out long ago, which is why they have so many toll roads.

The 10,000,000 Florida homeowners are paying for all the infrastructure being consumed by the tourists, & part-timers. The tourist taxes are coming up short, & the full time property owners are shouldering too much of the cost. That is my opinion, based upon living here for 30+ yrs and seeing how much infrastructure the tourists and part-timers require.

This is a way to get the tourists & part-timers to pay more towards the infrastructure they utilize, while here.

It doesn't say that specifically, but if one reasons it through, that becomes an obvious result. Its not the sole goal of the proposed change, just 1 goal I think they are trying to achieve...they may not come out and say it, becaue they know it could alienate tourists.

I need to see more detail, but at first blush, I like the concept.

"Consumption tax" is not the same thing as "tourism tax."

Consumption taxes are imposed on everyone, not just people who rent short-term or visit Disney World. As others have already mentioned up-thread, Florida has a 6% sales tax. Various parts of the state have 1-2% additional tax, and there is an additional tax on hotels and short-term rentals.

A consumption tax would be tax in addition to THOSE taxes - on things like - McDonald's. A 5-pound bag of flour at Publix. Your shoes. Emergency services. Schools, both public and private. Consumption tax is a tax on goods and services. EVERYONE would pay it, on top of what they're already paying. Including people who are low-income and already living on a budget. It is basically a punishment tax for the poor, and a nothingberder for the wealthy.