Rent vs Sell: Florida Property Tax Elimination Edition
This is a tad long, but want to add as much color as I can. Currently live in FL, own a single family home. Still have a mortgage (330K, 4%, roughly 2600 p/mo via escrow), home values at 700K, tax assessed at 520K.
We were planning on leaving Florida (weather, cost of living related) and was going to sell and use the money earned to buy another home in a neighboring state (GA or TN most likely). We were hoping to sell this summer, and move before school starts. Moving would cut our expenses dramatically while upgrading our home.
I'm sure quite a few of you have heard about the proposed change to the Florida property taxes. The bill that has passed the house (still needs senate approval, then vote in November) would eliminate all property taxes, minus school taxes. My taxes (currently 9K) would go down to $2800 per the county website. The plan is that this would be phased out over 10 years, meaning they would add 100K to the homestead exemption each year until 2037. The biggest catch i've found is that when you sell your house, you pay a 5% fee to the state on the sold price (ouch).
Proponents state that this will cause home values to skyrocket, potentially doubling over the next 12-24 months following the bill passing in November. While I agree they'll increase, doubling seems like an excessive prediction.
Opponents to the bill state that this will drive up sales tax 3-4%. Nothing has been proven here, I think this is an assumption based on the shortfall in local budgets. Knowing my area, our county residents vote, and pass, EVERY TIME for tax increases no matter how much or for what. Who votes to tax themselves? I digress.
So my question: What would you do? Would you bet on the bill passing, keep the home, rent it out for the long term value increase due to the bill potentially passing, or would you sell and be done with it? This is my dilemma. In doing the math, i wouldn't make a ton of money on the rental until the amendment has matured enough to wipe out my property taxes, which would add $500 p/mo in my pocket. The flip side - what if the bill doesn't pass, and then i've got a home i'm paying for, making very little money on for the headache. Additionally, would need to figure out how to fund the 20-30% down I would be putting on the new home wherever we move as well.
What would you do?
Florida Bill here: https://www.flsenate.gov/Session/Bill/2026/203/ByCategory/?Tab=BillText