Property tax reform dead – but lawmakers call special session

TALLAHASSEE, Fla. – May 2, 2007 – Property tax reform is dead, at least for now. The Florida Senate President and House Speaker said today that talks have broken down and time has run out – but they also announced that a special session to deal with the issue would be held sometime between June 5 and 15. However, three real-estate-related bills passed yesterday and now await approval, or a veto, from Gov. Crist.

Senate Speaker Ken Pruitt (R-Port St. Lucie) said that House and Senate conferees have come a long way toward compromise, but they just cannot come to terms in the final 36 hours of the session with the necessary reform for Florida’s property owners.

“While I am disappointed the Legislature didn’t finalize the property tax reform plan during the regular session, the 30 days (until) the June special session allows us even more time to make our voices heard,” says FAR President Nancy Riley. “Your legislator will be home for the next four weeks,” she adds, suggesting that every FAR member use that time to meet with their personal representatives and keep pressuring them for significant property tax reform.
 
“It is my hope that a special legislative session devoted entirely to this issue will be able to deliver even more comprehensive tax reform than what could be negotiated in the waning hours of the regular session,” Riley says. “The Legislature will be able to roll back rates immediately and, if we remain strong, we will get our special election this year for portability and other constitutional issues that must be ratified by the voters.”

Other real-estate-related bills moved forward yesterday, however.

Property managers

Under HB 1277 by Rep. Pat Patterson (R-DeLand), a landlord may impose additional penalties – to a limit and only if included in the lease agreement – on tenants who break a lease. Under existing law, a landlord’s remedy for a tenant’s early termination is the landlord’s actual damages. Under HB 1277, an “early termination fee” may be imposed on a yearly lease, providing the fee does not add up to more than two months rent, even if the unit does not remain empty for two months after it’s vacated. The House passed HB 1277 yesterday morning on a 101 to 14 vote and sent it to the Senate, where it passed unanimously. It was sent to the governor this afternoon. The bill will take effect immediately if and when the governor signs it into law.

Mortgage brokers and lenders

SB 1824 by Sen. Mike Fasano (R-New Port Richey) places numerous disclosure and education requirements on mortgage brokers and lenders to help protect consumers during the mortgage loan application process. If signed by the governor, it takes effect Oct. 1, 2007.

Title insurance

HB 111 by Rep. Bill Galvano (R-Bradenton) requires a title insurance agent not based in Florida to fulfill the same licensure and continuing education requirements as a resident title insurance agent. The bill also repeals several provisions of current law dealing with a title agent’s compensation. If signed by the governor, the bill takes effect Oct. 1, 2007.

© 2007 FLORIDA ASSOCIATION OF REALTORS® 

Questions, comments or suggestions on this article? Have a news tip? Send a letter to the editor to: Newseditor@floridarealtors.org.