Ron DeSantis Providing Abbott With Elimination of Property Tax Roadmap

5,320 Views | 64 Replies | Last: 8 days ago by Hardcore Greg
Gaeilge
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I think this is an ingenious proposal and model to offer up. It provides immediate relief to the middle-class homeowners while still providing a certain level of security blanket with taxable value above the threshold.


Quote:

JUST IN IT'S OFFICIAL: Gov. Ron DeSantis has just called a Special Session of the Legislature to ABOLISH Florida homeowners' property taxes

THIS. IS. HUGE!

Florida is about to make history. Once the legislature approves, it goes to the voters.

60% will EASILY pass this. It will be TELLING which groups pour money to campaign against it.

DESANTIS' PLAN:

IMMEDIATE $250,000 is tax free, meaning all primary homes $250K and under pay $0 tax, the rest get to deduct it from the taxable amount

Schedule will be set to ABOLISH taxes fully on primary residences. It could first double to $500K, then be lifted.

60% of Florida primary homeowners fall into the immediate NO TAXES. When the schedule kicks into $500K, that's over 90% of primary homeowners paying $0.

The ballot amendment will also crack down on local governments irresponsibly spending their tax revenues on non-necessary services

GET THIS DONE!

DrEvazanPhD
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I mean, great. How long until local taxing authorities arbitrarily decide that all of our homes are suddenly worth 250k more?

Gaeilge
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I get what you're saying, but I'd imagine the 10% mechanism would still be in play here for TX and possibly even reigned in some.
AgBQ-00
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AG
I've said it many times and I will keep saying it...Income taxes create a defacto slave status for the people to the state, and property taxes make you a state tenant. They are both immoral and antithetical to our founding principles that people own the totality of the produce of their own labor
God loves you so much He'll meet you where you are. He also loves you too much to allow to stay where you are.

We sing Hallelujah! The Lamb has overcome!
Sid Farkas
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Fla residential real estate is in serious trouble...HOAs and insurance is ruining the market in huge swaths of the state. They gotta do something fast.
Logos Stick
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did not click anything... what are they replacing it with?
YouBet
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AG
Logos Stick said:

did not click anything... what are they replacing it with?

This. What is the offset? They aren't going to kill property taxes and not replace it with something else.
BTKAG97
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It doesn't specifically state what would replace the lost tax receipts.

With that said, this is only a HOMESTEAD exemption. Meaning 2nd homes, rental properties, and businesses will continue to be taxed.
javajaws
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AG
Yeah there is no roadmap until you decide what to cut from the budget or how to make up the shortfall.
Colonel Kurtz
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AG
Abbott has been campaigning on property taxes for 12 years
aggie93
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YouBet said:

Logos Stick said:

did not click anything... what are they replacing it with?

This. What is the offset? They aren't going to kill property taxes and not replace it with something else.

It's a combination of factors, some of which don't translate to Texas.

The policy is only for FL residents and FL has a huge amount of snowbirds with 2nd residences in FL that will still pay taxes. They also make a ton off of tourism taxes. Investment property is also excluded. If Texas wanted to do the same they would need to make up some of the margin off of O&G most likely or some other corporate taxes, we don't have nearly the tourism or 2nd homes here though we have a decent amount of investment property. We could tax the hell out of any foreign owned property as well and either make a ton off of it or force them to sell.

Florida actually doesn't make as much on traditional homestead style property taxes as you would think. That's what also makes this politically brilliant, it benefits Florida voters at the expense of people not from the state or people with investment property.

DeSantis has also spent the last 8 years making FL run as lean as possible. He has cut a ton of bureaucracy and they have the most efficient state government in the country. All government is flawed but they really have cleaned things up. Thus they spend about half of what NY does with more population than NY for instance.

At least that is my understanding, DeSantis has planned this for a long time and is now executing that plan.
"The most terrifying words in the English language are: I'm from the government and I'm here to help."

Ronald Reagan
AGHouston11
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You can't even put up a three sided pole barn in Texas on land you own with a drone flying over adding it to your tax bill.

Want to build a small home on property you own and build it mostly yourself? Well 150k of materials. What is your prize after completion? A tax evaluation for 500k plus and a new tax bill for eternity!

The founders never intended this theft!
MagnumLoad
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If the exemptions are done away with, and taxable value is market, this won't help much. Just eliminate property tax on primary residence totally.
I hate tu. It's in my blood.
rgag12
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AGHouston11 said:

You can't even put up a three sided pole barn in Texas on land you own with a drone flying over adding it to your tax bill.

Want to build a small home on property you own and build it mostly yourself? Well 150k of materials. What is your prize after completion? A tax evaluation for 500k plus and a new tax bill for eternity!

The founders never intended this theft!


They also thought you'd build the roads leading from your property to the community, would do your part to police the community, be part or support the collective that schooled local kids, and generally contributed your blood and sweat for the upkeep of the community as a whole.

The US was an agrarian country for most of its 250 years of its existence. Society has changed so much since the early twentieth century, people expect and rely on the local and state government to do many things for them now. You take away even 30% of it and the quality of life will dip for awhile until we can replace what was once provided to us.

I'm a limited government guy, but even I realize that if you take away a substantial amount of tax then there will be consequences. I think most conservatives for some reason fail to think through this, or hand wave it away by proposing impractical and unworkable alternatives.
Helicopter Ben
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YouBet said:

Logos Stick said:

did not click anything... what are they replacing it with?

This. What is the offset? They aren't going to kill property taxes and not replace it with something else.

Agreed. It's putting the cart before the horse. While I'm happy to see any tax reduction, it will just be made up for by a tax increase somewhere else. So unless this is coinciding with some other govt spending cuts, it will effectively be a net wash. Bottom line is that government is taking too much from us and "providing" too many "services" that should be left to the private sector which will provide them far more efficiently and effectively. We need cuts to SPENDING. Wholesale elimination of government programs and entire departments. I know it's a crazy idea, but I believe individuals should be left to choose what they want to pay for.

Considering how immoral and oxymoronic the concept of property taxes are, I'll at least chalk this up as a step in the right direction.
Im Gipper
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From twk two times ago when this was discussed:

Quote:

none of the people claiming that we can easily abolish property taxes and replace them with consumption taxes have even touched on the largest problem with this concept, and that is the sales tax is collected at the point of sale, not the residence of the purchaser. If you live in a district outside an urban center, your sales tax for purchasing cars, appliances, and basically anything of value goes to a jurisdiction other than the one where you live. Even if you live in a urban area, retail activity tends to be higher in some suburbs than others.

If we went with a consumption tax, we'd have to have the state collect the tax, and parcel the money out based on population rather than where the sales occur, or else we would be replacing a system which pretty effectively spreads tax out over the entire state with one which concentrates it in a few jurisdictions.


How can we implement this change in Texas without shifting the power of the purse from counties to Austin?

I'm Gipper
Kenneth_2003
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Everyone here going on about the STATE and property tax.

100% of property tax in Texas are LOCAL! State does have 6% sales tax and a tax on all oil and gas production.
Im Gipper
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Everyone knows property takes are local. But the state set up the whole system of property taxes so are the only ones that can take it away

I'm Gipper
AGHouston11
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rgag12 said:

AGHouston11 said:

You can't even put up a three sided pole barn in Texas on land you own with a drone flying over adding it to your tax bill.

Want to build a small home on property you own and build it mostly yourself? Well 150k of materials. What is your prize after completion? A tax evaluation for 500k plus and a new tax bill for eternity!

The founders never intended this theft!


They also thought you'd build the roads leading from your property to the community, would do your part to police the community, be part or support the collective that schooled local kids, and generally contributed your blood and sweat for the upkeep of the community as a whole.

The US was an agrarian country for most of its 250 years of its existence. Society has changed so much since the early twentieth century, people expect and rely on the local and state government to do many things for them now. You take away even 30% of it and the quality of life will dip for awhile until we can replace what was once provided to us.

I'm a limited government guy, but even I realize that if you take away a substantial amount of tax then there will be consequences. I think most conservatives for some reason fail to think through this, or hand wave it away by proposing impractical and unworkable alternatives.


We have a country full of unnecessary entitlements and garbage school systems. Preach after this is eliminated but people should not be taxed to eternity on a pole barn or a house they build on their own property!
91AggieLawyer
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YouBet said:

Logos Stick said:

did not click anything... what are they replacing it with?

This. What is the offset? They aren't going to kill property taxes and not replace it with something else.


How about government learn to live with less. They don't seem to mind dictating that to us.

Besides, go back to Microeconomics, if you took it: you don't spend $2500 (or whatever) on property taxes, which means you either spend it on something else or save. If you save, that raises the market price (on a macro level at the very least) of the security you put that savings in, even if just a bank savings account, which are backed by something. If you spend, that generates direct economic growth. BOTH activities generate tax revenue in other ways.

This doesn't even deal with the idea that people can afford more house for their money when they're not paying $400-1200 a month just in property taxes -- and whatever macro economic affects that has. I've almost paid off my house, but my principal and interest payment alone are less than the rent I paid on my wife and I's first apartment when we got married a LONG time ago. Adjusting for inflation, it is only a little more than what I paid to rent a 600 sq.ft. apartment in College Station when I was at A&M!
Im Gipper
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Quote:

How about government learn to live with less.


100% agree!


But Texas schools are funded by property taxes. So there has to be an offset. So where does that come from?

I'm Gipper
CS78
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Double the taxes on property owned by non US residents. Two birds, one stone?
Pizza
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In Texas you're fighting people in the legislature who have family that are firmly entrenched in the property tax protest business. Eg Bettencourt, Ownwell etc.

I highly doubt it happens in Texas, but I'm rooting for it.

The agents people hire to protest their Taxes show up and ask for a handout, that is often given to them, and then they tell the property owner "look what I did for you, pay me"

Many times they'll show up with your purchase price, and get your taxable MV dropped to it, and all you had to do was bring in your sales contract, and wait for a bit to get your cut.

If you take the time to just show up, the comptroller often advises the ARB in training sessions to give the homeowner a break. All you need is an equity argument such as a similar home with a much lower taxable market value, or a few sales that show you're over valued.

Don't let agents do for you, what you can easily do for yourself.
Pizza
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Im Gipper said:

Quote:

How about government learn to live with less.


100% agree!


But Texas schools are funded by property taxes. So there has to be an offset. So where does that come from?


Displacement via Sales tax.

Fund school districts with a sales tax so anyone passing through your county, purchasing goods or services is also contributing.

For smaller or rural counties a different strategy may be needed, such as subsidization of some kind from the larger share of state tax dollars, but that's the absolute best route I've come across.
one safe place
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He is not abolishing property taxes, he is doing what so many have done and that is tinker with the exemption. Over time, values increase which counters somewhat the increased exemption.

Needs to go all out, abolish property taxes, replace the revenue with other taxes, but do away with the wealth tax that is otherwise known as property tax.
Im Gipper
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That puts all the power in Austin.

As asked above, " How can we implement this change in Texas without shifting the power of the purse from counties to Austin?"

I'm Gipper
Pizza
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Im Gipper said:

That puts all the power in Austin.

As asked above, " How can we implement this change in Texas without shifting the power of the purse from counties to Austin?"


You can't have your cake and eat it too.

That's how life works.

However - instead of the school district determining the levy needed in a given year to multiply against your taxable value to cover all expenses; they at the county level would determine a sales tax amount required to generate the necessary funds for a given year or two.

That seems like it could be a county level decision, but authority would need to be granted by the legislature.

I'm not a lawyer so I'm way out over my skis on that one

Either way sales tax is the only option, because morons decided to codify into law that texas won't have an income tax.
HTownAg98
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AGHouston11 said:

You can't even put up a three sided pole barn in Texas on land you own with a drone flying over adding it to your tax bill.

Want to build a small home on property you own and build it mostly yourself? Well 150k of materials. What is your prize after completion? A tax evaluation for 500k plus and a new tax bill for eternity!

The founders never intended this theft!

You should crack open a history book and read about what kind of taxes were used to finance the revolutionary war.
AJCB
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HTownAg98 said:

You should crack open a history book and read about what kind of taxes were used to finance the revolutionary war.

Considering the Articles of Confederation did not allow for direct taxation, I wish YOU would enlighten us on what taxes were used to finance the Revolutionary War.
FatZilla
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Pizza said:

Im Gipper said:

Quote:

How about government learn to live with less.


100% agree!


But Texas schools are funded by property taxes. So there has to be an offset. So where does that come from?


Displacement via Sales tax.

Fund school districts with a sales tax so anyone passing through your county, purchasing goods or services is also contributing.

For smaller or rural counties a different strategy may be needed, such as subsidization of some kind from the larger share of state tax dollars, but that's the absolute best route I've come across.


Not local tax but a state level sales tax like a VAT on all goods not deemed a required commodity like food or medicines. You use that to offset small rural districts. To receive funds, all expenditures must be public and audited each year. No more superintendents with a 250k salary for being a glorified head daycare watcher. Everyone pays their fare share on luxury goods.
YouBet
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Pizza said:

Im Gipper said:

That puts all the power in Austin.

As asked above, " How can we implement this change in Texas without shifting the power of the purse from counties to Austin?"


You can't have your cake and eat it too.

That's how life works.

However - instead of the school district determining the levy needed in a given year to multiply against your taxable value to cover all expenses; they at the county level would determine a sales tax amount required to generate the necessary funds for a given year or two.

That seems like it could be a county level decision, but authority would need to be granted by the legislature.

I'm not a lawyer so I'm way out over my skis on that one

Either way sales tax is the only option, because morons decided to codify into law that texas won't have an income tax.


Texas is stuck because of this. Only way out is to have a higher sales tax run out of Austin.

Spending won't get cut so crying about that is all that is - crying.
aggie93
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AGHouston11 said:

You can't even put up a three sided pole barn in Texas on land you own with a drone flying over adding it to your tax bill.

Want to build a small home on property you own and build it mostly yourself? Well 150k of materials. What is your prize after completion? A tax evaluation for 500k plus and a new tax bill for eternity!

The founders never intended this theft!

I have some land I'd love to build on. Currently exempt and a pittance in taxes. If I spend a year and a huge amount of money building on it I also get a monster tax bill for my trouble. Without the taxes going up so radically I would build but the taxes really make it prohibitive. So I just keep it empty for now and sit on it, I'll likely just sell it at some point.
"The most terrifying words in the English language are: I'm from the government and I'm here to help."

Ronald Reagan
aggie93
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Here is how he does it, strong fiscal discipline and efficiency. Remember Florida is growing by leaps and bounds in population and has the highest rated educational system in the country among other things.

"The most terrifying words in the English language are: I'm from the government and I'm here to help."

Ronald Reagan
Aggie Infantry
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THIS! As soon as it passes, home prices will sky rocket.
When the truth comes out, do not ask me how I knew.
Ask yourself why you did not.
npoznanski
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Property taxes is the best way to fund the stsate. Everyone gets taxed to fund the government (including illegals that rent property). The issue is that real estate had that huge jump in 2020 which boosted tax receipts. We need to add an automatic cap on amount of revenue each entity brings in to a certain growth percentage. That way these jurisdictions don't get accustomed to these large influx of cash.
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