Immigration bill before senate

[ipk]

Julie,

I note your comments with regard to another area where non-immigrant visa holders are penalised, I do feel that Homestead Exception should be available to those individuals who legally live and work in the US and, furthermore, the enormous increases in property taxes witnessed over the past 12 months should not have to borne by the aforementioned sector of non-immigrant visa holders (E's,L's and H visas) (the max 3% per year with the balance payable upon sale is much fairer and puts this sector on a par with Florida residents. Whilst I have some sympathy with 'Snowbirds' and rental property owners I feel the case for non-immigrant visa holders is much stronger. I have copied below an article from The Wall Street Journal (Edited for brevity but still lengthy) which demonstrates just what can be achieved, our case is much stronger but who out there knows!


"In late March, hundreds of Florida homeowners jammed the chambers of county commissioners in Fort Pierce, Fla., to protest rising property taxes. Ed McIntosh, a 75-year-old retiree, showed up with a foot-tall stack of complaints from homeowners, 623 letters in all.He read a batch of them aloud, one tale after another of seasonal residents juggling rising insurance costs, hurricane-repair bills and escalating property taxes, which have more than doubled in five years in parts of the state. Such protests have become commonplace in Florida as the state's snowbirds -- winter residents, who are mostly retirees from the Northeast, Midwest and Canada -- fight back against a tax system they believe is unfair and onerous. Mr. McIntosh, a retired Ford Motor Co. finance manager who lives in Beulah, Mich., spends four months a year along the Atlantic coast in Jensen Beach. He complains that seasonal residents are "being discriminated against...We're carrying the state on our backs."
All across the country, homeowners are complaining about runaway property taxes. In many places, sharp increases in home values are to blame. But Florida's snowbirds are angry about something else -- an unusual dual-bracket tax system. Florida allows municipalities to set the taxable value of properties at different levels for permanent and seasonal residents. There have been cases of snowbirds paying property taxes 10 times as high as those of permanent residents living nearby.
Not surprisingly, many full-time Florida residents, who are shielded by law from big property-tax hikes, don't see it that way. Kenneth Wilkinson, a property appraiser from Fort Myers who pushed for the two-tier system, says anyone who owns a second home in Florida should bear higher property taxes because "they created the problem" of rising real-estate values by bidding up prices and by increasing the need for local services.
Florida's two-tier system is rooted partly in a "homestead" exemption that dates back many years. The exemption currently provides permanent residents of the state with an automatic $25,000 reduction in the assessed value of their primary homes. In addition, an amendment to the state constitution that went into effect in 1995, called Save Our Homes, caps the annual increase in assessed property values and taxes at 3% or the rate of inflation, whichever is lower. That too applies only to the primary homes of permanent residents. Anyone who owns a home in Florida can become a permanent resident, no matter how much time the homeowner spends in state. A homeowner needs only to submit an affidavit stating his Florida home is his permanent residence. But many snowbirds are unwilling, because switching permanent residence would mean giving up tax breaks or other benefits they get from their home state or nation. For Florida's permanent residents, the property-tax savings have been substantial and are growing. Last year, 28% of the value of Florida's residential real estate, or $362.2 billion in value, was shielded from property taxes, according to Florida's Department of Revenue. That cut the average property-tax bill on the primary homes of state residents by $1,600, the state said. Property

[florida4sun]

It is easy to prove this from utility bills, school records for family members, bank a/cs etc etc.

<blockquote id="quote" class="ffs">quote:Originally posted by Robert5988
<blockquote id="quote" class="ffs">quote:Allows illegal immigrants who have been in the country five years or more to remain[/quote]
<blockquote id="quote" class="ffs">quote:Requires illegal immigrants in the U.S. between two and five years to go to a point of entry at the border and file an application to return[/quote]
<blockquote id="quote" class="ffs">quote:Requires those in the country less than two years to leave[/quote]

I wonder just how Uncle Sam will determine how long the illegal immigrant has been in the USA?

Presumably he didn't register when he illegally crossed the border!!



[/quote]

[flyrr100]

The 'Save Our Home' ammendment of the Florida Constitution, also known as Ammendment 10 caps how much the assesed value of homesteaded property may increase in a given year.
The assesed value may increase either:
* 3% annually (based on the assesed value for the prior year); or
* the percentage change of the Consumer Price Index (CPI) for the preceding year, whichever is less.

When buying a property you must be aware that your property will be re-assessed and your taxes will be based on the new assessed value.

A tax that would affect any foreign investors. That would include most villa owners on this board. Is the law that requires the Title Companies that close the sales of property in Florida to withold 10% of the sale price and forward this to the IRS. This is because many foreign investors have sold their properties and not paid the required taxes. There are a few exeptions to this rule. If you plan on selling a property in Florida, and are not a legal resident, you are encoraged to consult with a tax specialist before closing. This 10% can be adjusted after the seller submits the appropriate tax forms to the IRS before April 15th the following year.

Federal and Florida State tax law is a minefield. As a licensed Florida Real Estate Agent I have a limited knowlege, but my tax specialist takes care of my taxes.

[Robert5988]

<blockquote id="quote" class="ffs">quote:The 'Save Our Home' ammendment of the Florida Constitution, also known as Ammendment 10 caps how much the assesed value of homesteaded property may increase in a given year.
The assesed value may increase either:
* 3% annually (based on the assesed value for the prior year); or
* the percentage change of the Consumer Price Index (CPI) for the preceding year, whichever is less.

When buying a property you must be aware that your property will be re-assessed and your taxes will be based on the new assessed value.

A tax that would affect any foreign investors. That would include most villa owners on this board. Is the law that requires the Title Companies that close the sales of property in Florida to withold 10% of the sale price and forward this to the IRS. This is because many foreign investors have sold their properties and not paid the required taxes. There are a few exeptions to this rule. If you plan on selling a property in Florida, and are not a legal resident, you are encoraged to consult with a tax specialist before closing. This 10% can be adjusted after the seller submits the appropriate tax forms to the IRS before April 15th the following year.

Federal and Florida State tax law is a minefield. As a licensed Florida Real Estate Agent I have a limited knowlege, but my tax specialist takes care of my taxes.[/quote]

My understanding(from a Real Estate broker and a tax lawyer) was the 10% of sale price withheld was primarily to cover any liability for Capital Gains Tax.

[flyrr100]

You are correct. It's because many foreign owners sold their properties and didn't submit a tax return to declare and pay the Capital Gains Taxes owed.

The way it's put in my 'Tax for Dummies' book is as follows:
Another federal Government regulation that all licencees need to be aware of concerns the purchase of real property in the US from foreign sellers. To prevent foreign sellers from avoiding payment of taxes due on the same of real property, the IRS requires that buyers withold 10% of the gross sale price ect.........................

I do agree that all owners should be able to take advantage of the Homstead Act and the Save our Homes ammendment.

[esprit]

Looks like Kay was right and they have thrown the bit that would have afforded all illegals permanent residence out. Looks like we are back with the guest worker programme.

Senate rejected a California Democrat's plan to allow the estimated 12 million illegal immigrants in the country to remain, work and eventually become U.S. citizens, preserving a fragile bipartisan coalition needed to pass the bill.


Several lawmakers who voted Tuesday against the proposal offered by Sen. Dianne Feinstein said they did so reluctantly, but out of necessity to ensure survival of the broader immigration bill. That legislation is expected to win Senate passage Wednesday or Thursday.


"This legislation is on the edge of the ledge as it is," said Sen. Arlen Specter of Pennsylvania, one of the Republicans supporting a delicate compromise that has kept the bill alive - letting two-thirds of illegal immigrants stay but making the other third leave.


Feinstein's amendment, defeated 61-to-37, would have supplanted the compromise that allows illegal immigrants here five years or more to stay and work six years and seek legal residency after paying back taxes and fines and showing they were learning English.


Those in the country two to five years under the compromise would have to go to a point of entry, exit and file an application to return as a guest worker. Those here less than two years must leave the country, but could apply from their native country to return as a guest worker and wait in line to get a visa.