There was a condo sale at 2901 S. Bayshore Drive in Coconut Grove. For $265,000. I looked up the record and the condo had been bought previously in 2004 for $213,000. Although not a killing, the seller did manage to squeeze out $52,000 in 4 years. This property is valued at $293,130 by the Property Appraiser and the property taxes were $6,635 prior to the sale.
On another property at 801 Brickell Key: (23rd floor 2/2), the sale price was $460,000. That seller paid $487,000 in 2004 (a year earlier '03, it sold for $451,000). That is $27,000 the seller lost in 4 years of ownership. The problem is, the Property Appraiser is showing this condo with a value of $538,400 for tax purposes. This has to be adjusted down significantly from the previous owner’s $12,000 in taxes.
Let’s hope both sellers didn’t do a lot of renovation on the units because then they would be big losers. Also I hope the County and the State are going to significantly tighten their belt. I don’t see how we can avoid a State income tax when all these downward property tax adjustments kick-in to the actual value of the properties, instead of the high value the Property Appraiser has guesstimated. The sale of these two properties took $106,430 off the taxable base.
From today's Miami Herald:
Florida legislators will start the new year in familiar fashion: by cutting aid to schools and other programs, borrowing money, skimming cash surpluses and hiking traffic and court fees to patch a $2.3 billion hole in a leaky state budget.
The special session that begins Monday will bring the third major round of cuts in 10 months and is the result of a prolonged nosedive in tax revenues caused by the recession-wracked real estate and credit markets.
Barred from deficit spending by the state Constitution and firmly opposed to new taxes, the state's Republican leaders are in a budgetary corner, forced to further constrict spending.
''Times are bad for Floridians,'' said Senate Majority Leader Alex Diaz de la Portilla, R-Miami. ``We're going to have to make decisions here that no one will really like.''
8 comments:
"On another property at 801 Brickell Key: (23rd floor 2/2), the sale price was $460,000. That seller paid $487,000 in 2004. That is $27,000 she made in 4 years of ownership."
Do you have those sale prices swapped or did the seller actually lose $27k?
damn reader, you are alert and my math sucks...I had to rewrite a bit, but I think I saved the article...because the real premise is: WTF is this good for nothing Florida Government going to do with the taxes adjusted back to old rates. Look at them scrambling now in Tallahassee and the shit hasn't even hit the fan on property tax readjustments. The County and cities too, they are all up shit's creek.
News Flash Genius regular folk are up shits creek to and have had to turn in thr Hummer and the 5000 square foot Mcmansion. Reality really sucks for some folks, government should simply LIVE WITHIN ITS MEANS. The state along with cities and counties where just as fat dumb and happy as all the Bozos buying real estate at exhorbitant prices. Its time for everyone to get lean including the government otherwise things will only continue to detriorate. NO STATE INCOME TAX! We are parctically serfs as it is. Step away from the crack pipe Genius.....
I DON'T want a State Income tax...I just think it is going to happen, I am the sage of bad news...We are headed for that or an end of the homestead exemption. Something has to give and it is not going to be IN OUR FAVOR.
Oddly, crack is a drug I never tried, although I did draw a crack pipe for a T shirt I designed.
Riley says:
Why not a state income tax on new comers to the state. If they want sunshine & surf they need to pay. This includes fast boat money paid riders, foreigners with Swiss
bank accounts & out of state Joes. The latest jargon in the media can be used here too------"You have to pay to play in the sunshine" Let's legislate soon.
Apparently a reader of the Miami Herald brought up a state income tax in the letter section...so I am not alone in this opinion on the only way they can get out from under the shortfall.
Genuis-can I call you that- you say that a state income tax is the only way the state, counties and cities can balance there budgets without some sort of universe ending crisis. I ask a simple question genius; Why Did county and state budgets rise over 50% in less than five years? Did the population increase 50%? Was inflation 50% across the board over 5 years?
NO the only thing that happenned is that a bunch of lemmings with more money and credit than sense entered the real estate market and drove prices UP UP and Away. So now that we are back to where we started why should the state counties and cities have such a huge problem adjusting? Don't tell me they wasted the money on more make work jobs and all sorts of other crap (not to be confused with crack). NO STATE INCOME TAX. F$CK the State Counties and Cities lord only knows theyve been screwing us for eons.
THE PENSIONS GENIUS talk about THE PENSIONS, THE PENSIONS.
ye of little faith...
I am saying exactly what you are saying since I started blogging. I agree bloated pensions and everything else is bloated in their budgets.
I am however predicting what the government is going to do, not what I think they should do:
They are all going to say: "wtf should we do?" "Schools are now down to $38 dollars of the budget, we can't cut them anymore, we have raided the lottery money and just about everything else and we are addicted to the increase we had during the boom time, we can't go back...we need more, we have to raise taxes,"
....and that is how we will get a State income tax because there will be a limit to how much they can squeeze out of schools without mothers everywhere screaming bloody murder -- mothers who will pay an income tax rather than see schools completely unfunded. Actually, I am surprised they are not in an uproar already.
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