Saturday, February 17, 2007 11:43 PM
Perrone Realty Inc.
Response to Orlando Sentinel Article 02/16/07
John Jennedy wrote an article that was published front page on Friday titled "Home prices rise; student numbers fall"
The reason I chose to make a few comments on this article is due to the Gorilla in the room; Taxes
The article does point out how school districts across the state speculated on the enrollment numbers expected for the 2001/2008 school year, where many, not only missed their projected numbers, but MANY were no where close. Now I can go on and on why I believe those numbers were farse, but I think in more relevant to address the reasons given for their inadequacies.
Many people will tell you that taxes and insurance are the reason many people will not move to Florida, and that is far from the truth. While those issues do play a part, it's simply not the whole reason as stated in the article. Now our new Governor does have a mountain to climb in addressing these issues, but reality is Florida is growing, and you do not grow by people moving around within the state. Florida is growing because our lack of income tax, our mild winters and our ever so wonderful beaches. Those people migrating here are shocked by the taxes only because they see the previous landholders tax rate, and the NEW tax rate. So simply we have spoiled ourselves but this has nothing to do with what new residents are thinking.
I took a phone call just the other day from a retiree from Chicago who bluntly stated, "I have heard about the taxes and insurance situation in Florida, how bad is it?" My response was, "in relation to what?" After visiting our local OCPA website, I gave her a few estimates on taxes based on new purchase prices and it was 2/3rds what she was currently paying on a home she was living in for the past 10 years. So after a 30 minute phone call she was laughing at the fact that we are making such a hub-bub over our tax situation.
Now I agree, our tax situation could be alot better, as I am definately on the side of lower taxes, and know it will make a great difference in more people relocating within the state, but will do little for those relocating to the state. I believe the state officials were seeing home sales as a gauge of new students, when they were not accounting for investors who bought and never intended to occupy the properties, I am sure that had alot to do with those estimates that were way off, add to that second home buyers as well as younger families with under age children or no children at all, and remove those buyers from the mix and estimates and I bet those numbers would be alot closer to reality.