In Harlem, a region in NYC there is a game called “three card monte” it is played on a table with three cards face up. The player picks a card and then the cards are turned over and mixed up. You bet on which card is yours. Sounds easy but I have seen people lose hundreds of dollars attempting to pick one card out of three.
The above is something akin to the new scheme to lower ad valorem taxes in Florida. Florida is no longer a low tax state and the houses for sale in Florida proves it.
Nationwide, there are approximately 1.58 million active housing listings in the U.S., with over 215,000 of those located in Florida. This means Florida currently accounts for roughly 1 in 7 of all homes for sale in the country, despite representing only about 8% of America’s total housing stock.
How many people selling their homes are doing it under duress is not known, but Charlotte County has 36% of its residents considered poor. This number is very high given the total number in the county is 235,000.
The Florida legislature has come up with their version of a “three card monte system” by offering up a plan to cut taxes for those who are “homesteaded” in the state. For those coming to live here, they have to apply to be on the homestead agenda before 2027.
While it sounds like a winner, the counties will have to give up their local control over much of what they do should the “new tax income” fall short of what is needed. Other counties will have to eliminate projects or make them smaller or build them only when fully funded.
The school portion of the tax bill will not be affected and so the schools can, and I assume will, attempt to take advantage of their special assessment ability.
The counties can charge “fees” to raise funds and while this sounds like enough, it is only a few of the disadvantages of the government trying to put 10 lbs. in a 5 lb. Bag.
The bill, meant to be part of the state constitution, needs to be passed by 60% of the voters and while that sounds like a high bar, those who want or need to “save” money, just might fall for the idea of creative politics “three card monte” style. For the record, the law has not been written and will not until the voters either pass or deny the idea of making this something that will live forever in the state.
The final bill probably will not be anything as promised. It could be better, but more likely worse. It will encourage some and deny others and will be challenged in the courts.
It could take years to settle and those who will write the bill, the people who will not be there, those who will vote to “allow” those who will not be there to write the bill and those … well, you get it… this bill to nowhere … is just that, a nothing bill, meant only to say to the public… “We Tried.”
Any attempt to create money or wealth by fiat is a violation of the laws of economics and does nothing for the political future of those who become believers in their disbeliefs. I will vote no on the bill and will vote to end the constant spending by the commissioners in Charlotte County.
It will be easy for me to deny some who believe they will be spared the costs to live in the Sunshine state. We cannot become the “Tax Creativity State” and expect all bills to be paid by those yet to come.
Those who live by the economic sword, will die by the economic sword. While this sounds like I do not care, my beliefs are promoted to save all of us a worse tax adventure; one where the misdirected become fully crazy and where any guests, either family or friends will have to pay guest fees should they want to come down and play in the sun.
Now if we could only get Toyota to build a $3.8 billion dollar plant in Charlotte County, you might not have to read this missive.
All those people from the north got infected with ideas of “what we need” and not what we can afford, making Florida a retirement punishment for being too smart by half.
By Dr. Richard Pitz