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John Sebree, Vice President - Public Policy
(850) 224-1400

Lisa Walker, Director of Communications & Public Affairs
(407) 427-6010

Florida Senate Targets Homebuyers To Pay for Growth

ORLANDO, Fla., May 5, 2005 -- As if a 75 percent increase in home prices over the past five years wasn’t enough, Florida families may have to overcome a new obstacle to buying a home: a 71 percent increase in taxes paid at closing. 

Yesterday, the Florida Senate voted 34-5 in favor of a growth management plan that would allow cities to raise documentary stamp taxes paid on the deed by up to 50 cents per $100 of value on all real estate transactions. The Florida Association of Realtors® estimates that doc stamp taxes paid by the buyer at closing could jump more than $1,000, pricing nearly 18,000 prospective buyers out of the market. 

“Ask your child’s teacher how long it will take to save an additional $1,000 to buy a home,” says John Sebree, vice president of public policy for the Florida Association of Realtors®. “In 2000, the median price of a modest three-bedroom existing home was $121,000. Today, that same house goes for more than $212,000. That’s a 75 percent increase in just five years. Now, add to that higher homeowners’ insurance costs, higher property taxes and now an extra $1,000 at the closing table, and these prospective homebuyers remain renters.” 

With the state enjoying a $2 billion windfall in revenue this year, thanks largely to the red-hot housing market, creating disincentives for homeownership is counterproductive. A better solution to the state’s growth needs would be to rely on broad-based revenue sources such as sales and gas taxes. “Those of us who choose to call Florida home have a financial responsibility for the quality of life we seek,” says Sebree. “Broad-based revenue sources such as sales and gas taxes shift the burden for paying for growth from one group — homebuyers — to all Floridians and to the tourists who use our roads and infrastructure.”

The Florida Association of Realtors, the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its more than 125,000 members in 70 boards/associations.

© 2005 FLORIDA ASSOCIATION OF REALTORS