TALLAHASSEE, Fla. – March 3, 2017 –

The buzz in Tallahassee is palpable as the 2017 session of the Florida Legislature fast approaches.

With just over a day to go until the annual legislative race begins, Realtors® throughout the state will be impacted by a myriad of bills that are set to be discussed, debated and voted on over the next 60 days.

Florida Realtors will be focusing on six legislative priorities designed to protect homeowners, promote business and community growth, safeguard Florida’s natural resources, ensure fair and transparent real estate transactions and provide Floridians with more affordable housing options.

“This really is the calm before the storm, but by no means have the last few months been a sunny day at the park,” says Carrie O’Rourke, vice president of public policy for Florida Realtors. “Leading up to session, we have been working hard to explain our issues to lawmakers and help them understand why legislation is needed. I think those efforts paid off based on the movement of some of these bills during the last month of pre-session committee meetings.”

Here is a quick status update on where Florida Realtors’ priorities are in the legislative process prior to the start of session:

• Priority: Cut/reduce the business rent sales tax

Summary: Florida charges a six percent sales tax on business rent, creating a financial burden for any business that leases space. What’s more, municipalities and local governments may levy additional taxes on top of the state sales tax rate. Consequently, businesses in many counties are paying up to an eight percent sales tax rate on their business rent. Lowering the business rent tax will provide Florida businesses with the capital to expand, hire more employees, improve benefits and raise salaries.

Florida Realtors is leading a coalition of business trade associations and other interested parties to advocate for the successful passage of a bill that will reduce the amount of sales tax that businesses must pay to rent commercial space.

Status: Senate Bill 704 by Senator Rene Garcia (R-Hialeah) is awaiting vote by the Community Affairs Committee.

House Bill 463 by Representative Holly Raschein (R-Key Largo) is awaiting a vote by the Ways and Means Committee.

• Priority: Support a permanent property tax cap on second homes and commercial property

Summary: A constitutional amendment created a 10 percent cap on the annual increase of property taxes for all non-homestead properties. This cap helps make sure businesses don’t get hit with property tax bills they can’t cover, the cost of owning a second home doesn’t skyrocket, and that renters don’t see huge increases in their monthly rent. However, this cap is set to expire on Jan. 1, 2019.

Florida Realtors is leading a coalition of business trade associations and other interested parties in encouraging the legislature to take action this session to ensure a constitutional amendment is put back in front of voters for renewal during the 2018 General Election.

Status: Senate Joint Resolution (SJR) 76 by Senator Tom Lee (R-Brandon) was voted favorably by the Appropriations Subcommittee on Finance and Tax. It now moves to the Appropriations Committee.

House Joint Resolution (HJR) 21 by Representative Colleen Burton (R-Lakeland) was voted favorably by the Ways and Means Committee. It now moves to the Commerce Committee.

• Priority: Cap the fees charged by community associations for estoppel certificates

Summary: Florida law allows condo and homeowners associations to charge a “reasonable” fee to prepare an estoppel certificate, which is essentially a payoff letter. Some association management companies have turned this administrative task into a lucrative revenue stream.

Florida Realtors is advocating for a bill that restores fairness to real estate transactions by capping estoppel fees.

Status: Senate Bill 398 by Senator Kathleen Passidomo (R-Naples) was voted favorably by the Regulated Industries Committee. It now moves to the Judiciary Committee.

House Bill 483 by Representative Byron Donalds (R-Naples) is awaiting consideration by the Civil Justice & Claims Subcommittee.

• Priority: Increase funding of the housing trust funds

Summary: The state and local government housing trust funds were created to help families achieve the dream of homeownership with down payment assistance. They also provide housing rehabilitation and rental assistance to Florida’s homeless, veterans, seniors and people with disabilities.

Last year, the Legislature allocated $200.1 million toward the housing trust funds, the highest funding level in nine years. This is a significant allocation and we applaud lawmakers for supporting housing programs. However, as the economy continues to strengthen and home values rise, the need for housing assistance will increase as well.

Florida Realtors is urging the Legislature to appropriate the housing trust fund monies for housing programs.

Status: This is a budget item. No status update at this time.

• Priority: Help preserve Florida’s natural resources

Summary: No matter where you live in Florida, clean and abundant water is vital. Florida Realtors supports legislation that reduces the number of septic tanks near shorelines and other important surface waters through a voluntary cost-share program between state and local governments that converts onsite sewage systems to central sewage.

Status: Senate Bill 874 by Senator Dana Young (R-Tampa) has been assigned to the Environmental Preservation and Conservation Committee and is awaiting placement on the agenda.

House Bill 551 by Representative Charlie Stone (R-Ocala) has been assigned to the Natural Resource and Public Lands Subcommittee and is awaiting placement on the agenda.

• Priority: Reform Assignment of Benefits to stop the abuses that raise everyone’s insurance rates

Summary: Assignment of Benefits (AOB) allows a contractor or other company handling repairs for a homeowner to work directly with the insurance company and collect the homeowner’s insurance benefits. AOB abuse with water and roofing claims have led to a significant increase in both the frequency and severity of insurance claims, particularly in South Florida. As a result, a number of insurance companies are requesting significant rate increases, and this shows no sign of slowing.

Florida Realtors supports legislation that would implement AOB reforms aimed at reducing this fraud and abuse.

Status: Senate Bill 1038 by Senator Dorothy Hukill (R-Port Orange) is awaiting a vote by the Banking and Insurance Committee.

No House companion bill has been filed yet.

© 2017 Florida Realtors®

Topics: Florida Legislature
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