REALTOR® Magazine-Daily News-Fla: Tax Portability Law Didn't Stimulate Sales

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Daily Real Estate News | January 29, 2009 | Fla: Tax Portability Law Didn't Stimulate Sales
A year ago, Florida voters approved a tax-reform package that limited the growth in the taxable value of homes to 3 percent a year and allowed those homeowners to sell their home and move to another, taking the tax limit with them.

The idea was to eliminate any tax considerations that might keep Floridians from selling a home and buying another, but the plan seems to have had little impact.

State tax experts calculated that the average home seller would save $2,500 in taxes when he sold a current property and bought a different one. In reality, the savings was much less. The 13,646 Floridians who took advantage of the tax break saved an average of $1,500 from what they would have paid previously.

"It was good intentions because of the idea to stimulate the economy, but you don't see the fruits of that, largely because the issue of subprime loans overshadowed everything," said Les Simmonds, president of the Orlando Regional REALTOR® Association.

Source: Orlando Sentinel, Mary Shanklin (01/29/2009)