Property Tax Amendement passes.......

Amendment 1, regarding property taxes here in Florida has passed to the delight of its supporters.

While it may not be the total relief we were looking for, it's a start on the road to recovery and relief for people who may have been stuck in homes. The portability of the Save-Our-Homes cap alone, in my opinion, could spark some interest in the real estate market.

David Denslow, research economist at the University of Florida, predicted a "little kick-up" from tax reform. Based on the experience of Proposition 13, California's own experiment with tax reform, portability modestly improved housing sales. But California limited the benefit to people ages 55 or older. Florida imposes no such age restrictions.

"If they had a $300,000 house that declined in price to $250,000, this may kick it up to $260,000," Denslow said of the potential Florida impact.

Denslow, with a team of other economists, wrote a study last year that addressed the issue of "lock-in" -- people forced to stay in existing homes because of the tax advantages.
The phenomenon seems real. The study said a Pinellas County home with $100,000 in accrued tax-assessment savings was 8.4 percent less likely to sell. In Hillsborough County, such a home was 6.3 percent less likely to sell.

Florida State University economist David MacPherson, an Amendment 1 critic, said the people most likely to benefit from property tax portability -- those with long tenure in their homes -- are least likely to sell.

So, pros or cons, it's SOMETHING. And I choose to take it as a positive step toward recovery.