2017 Realtor® Days Legislative Priorities

Support a permanent property tax cap on second homes and businesses

Vote YES for SJR 76 by Sen. Tom Lee (R-Brandon) and HJR 21 by Rep. Colleen Burton (R-Lakeland).

In 2008, Florida voters approved Amendment 1, which created a 10% cap on the annual increase of property taxes for all non-homestead properties. Non-homestead properties include second homes and businesses across the state. The 2008 amendment will sunset on Jan. 1, 2019, unless renewed in the 2018 general election.

Florida Realtors® is leading a coalition of business trade associations and other interested parties to advocate for the successful passage of a joint resolution that will place an amendment on the 2018 general election ballot. This amendment will permanently extend the 10% tax cap on all non-homestead properties.

Vote YES for SJR 76/HJR 21 as a first step in making the non-homestead property tax cap permanent.

Reduce the business rent tax

Vote YES for SB 704 by Sen. Rene Garcia (R-Hialeah) and HB 463 by Rep. Holly Raschein (R-Key Largo).

Florida charges a 6% sales tax on business rent, creating a financial burden for any business that leases space — from the local diner and hair salon to large retail stores. What’s more, municipalities and local governments may levy additional local option taxes on top of the state sales tax rate. Consequently, businesses in many counties are paying up to a 7.5% or 8% sales tax rate on their business rent.

Small businesses, which make up almost 99% of all Florida employers, are disproportionately impacted by this tax, because they are more likely to rent their location. Lowering the business rent tax will provide Florida businesses with the capital to expand, hire more employees, improve benefits and raise salaries.

Florida Realtors® is leading a coalition of business trade associations and other interested parties to advocate for the successful passage of a bill that will reduce the amount of sales tax that businesses must pay to rent commercial space.

Vote YES for SB 704/HB 463 so that business owners have capital to grow their operations and reinvest in their local communities.

Cap the fees charged by community association management companies for estoppel certificates

VOTE YES for SB 398 by Sen. Kathleen Passidomo (R-Naples) and HB 483 by Rep. Byron Donalds (R-Naples).

When purchasing property governed by a community association, buyers need to know whether the seller is current or delinquent in their dues, fees and assessments. This information is typically provided by the association management company to the closing agent in the form of an estoppel certificate. This document is very similar to a payoff letter from a lender.

These companies are required to maintain this financial information — as an official record — for every home and condo owner. In a vast majority of cases, preparing an estoppel certificate amounts to nothing more than printing a ledger.

Florida law allows association management companies to charge a “reasonable” fee for the preparation of an estoppel certificate. Some companies, however, have turned this administrative task into a revenue stream, sometimes charging over $1,000 for a
payoff letter.

Sellers often don’t learn about these charges until they receive the closing documents and they have no option but to pay the fee, no matter how high. That’s because their community association is the only source for the payoff information. There is no marketplace for them to shop for an estoppel certificate.

SB 398 and HB 483 cap the fees association management companies may charge for estoppel certificates, and specify a set time frame for when the certificate must be valid. The bills also create a uniform requirement for information, so an estoppel certificate for a property in Pensacola contains the same information as one for a Miami property.

Opponents want you to believe that a cap on estoppel certificate fees will automatically result in higher fees for property owners in the association. This is simply not true.

The bills don’t raise fees. Rather, they prevent community association management companies from imposing an “exit tax” on the backs of homeowners who are moving.

VOTE YES for SB 398/HB 483 and restore fairness to the real estate transaction.

Increase funding for state housing trust funds.

The state and local government housing trust funds were created in the early 1990s to help Floridians in good times and bad. These funds enable families to achieve the dream of homeownership with downpayment assistance. They also provide housing rehabilitation and rental assistance to Florida’s homeless, veterans, seniors and persons with disabilities.

Last year, the Legislature allocated $200 million toward the housing trust funds, the highest funding level in nine years. We applaud lawmakers for supporting housing programs. As the economy strengthens and market values rise, the need for housing assistance will increase, too. In 2017, there will be an estimated $300 million available for housing programs. The Florida Legislature can assist thousands of Floridians who have no place to call home by using the trust funds for their intended purpose.

The need is great. The money is available. This should be the easiest appropriation legislators will ever make.

Support the Competitive Workforce Act relating to the prohibition of housing discrimination.Vote YES for SB 666/HB 623

Preserve our waterways.Vote YES for SB 874/HB 551 to reduce the number of septic tanks near shorelines and surface waters.