Pocket Change

I went to my local fish market the other day and something smelled fishy! At the register to check out, it prompted me to either choose from 20%-22.5%-25% tip. I chose to opt out, but all sorts of anxiety swept over me. Was I a bad person not to tip? The fish guy did the filet so should he be tipped? But it’s the store itself asking for a tip! I wonder if they won’t like me and will give me a foul-smelling fish the next time? Now, I don’t even want to go back anymore.

I even had the tip add-on when buying a piece of gum at an airport last week at the convenience store checkout.

If you are tired of the excess tipping epidemic, I’m here to help find some pocket change to pay for all of this! Maybe it’s not out of line for me to send someone to your house with one of those machines asking for gratuity for my advice. Sounds labor intensive though. A thought occurred that I could have a Go Fund Me Page. Perhaps you’d be interested one day in paying for my bucket list dream trip to the Galapagos. Or maybe for an upcoming 15^th birthday celebration for our dog Chloe next year. 15 for a Cavachon is quite the paw!

But since it’s the summer and my White Sox have hovered around first place, I’ll be in a giving mood and work for free. Here goes……I was talking with some friends and they asked if I had checked to see if I had any unclaimed property. I did. Not only in Florida but in Illinois. The first was Phillips 66, the old gas station people. Conoco Phillips owes me dividend money and cash for shares dating back to 1982 from a Junior High School stock market class. My Mom fronted the money and is the custodian. $14.04 here and $8.84 there, etc… Actually, it added up to over $1,000! Then my first job out of college with Spartan Mills (I think they’re defunct now) from 1991. Spartan Mills owes me $293.82. Fill out the form and the dinero comes.

I told my parents about this. Illinois owes them all sorts of money. And my Grandma Harriet and Grandma Rosetta are also owed moola. So, there you go…free money.

I’ll have a list of all the unclaimed property by most states people live in at the end of this article so you can check.

Free money may also be coming your way in Florida real estate…if you are a Florida resident homeowner. Although maybe not so fast when you dive into all the details. The sizzling hot Florida DuJour topic (which will only intensify) is a bill to lower the homestead taxes. It will need 60% to pass. Woohoo!

As of today, Florida law gives a Florida resident $50,000 in homestead exemption. It’s actually the first $25,000 going to all property taxes. The second $25,000 applies to non-school taxes on assessed values between $50,000 and $75,000. Part of that homestead exemption also means that your property taxes can never exceed a 3% increase in a given year.

Non-homesteaded people on the other hand can have rates go up 10% a year. For someone like myself, our property taxes can be five to six times less than someone who bought the same type of comparable property next door. This is because we’ve owned it 23 years. Even with portability savings, it makes most people think twice about moving because of the increase in property taxes.

The proposed bill would dramatically increase that benefit:

January 1, 2027: The exemption would increase to $150,000 for the non-school portion of property taxes.
January 1, 2028: It would increase again to $250,000, with future inflation adjustments.
Inflationary adjusted increases from the $250,000 base. The inflationary increases in my opinion are long overdue.

All of this sounds great. More money in our pockets. Who wouldn’t vote for that? What could go wrong?!?

Here is the flip side of things to think about:

1. New Resident Wait

If the amendment passes, someone who becomes a Florida resident after January 1, 2027 would ….

Receive only the current $50,000 Homestead Exemption for their first five years in Florida.
Not receive the expanded $150,000/$250,000 exemption until they have been a Florida resident for five years.

While we as Realtors will pitch that for the first five years, nothing has really changed, the wait for five years for people who have retired is a turnoff. For people retiring who are older, this might put other states who offer homestead immediately in a better and more competitive state. It also makes it difficult for young people who move from Florida for work and then come back. Think kids out of college who take a job or get transferred out of school. If they want to move back they really need the extra savings from this bill the most. Now they get penalized for starting their career somewhere else and are disincentivized when moving back. My 22 year old daughter who was born here and would like to get experience outside of Florida to start falls in this category for example.

2. Shortfalls & Services

The bill was passed quickly without major studies. We already don’t have income taxes. Will the drop of property taxes mean services are cut? What about unexpected things that can happen? Does a lifeguard get cut from the beach for example? Any shortage means retail taxes go up which disproportionately will affect the lower and middle classes. I volunteer for Big Brothers Big Sisters. The budget is already tight. If it gets squeezed even more that puts kids at risk and there are breaking bad effects not everyone thinks about. Some cities say they will have shortfalls. Especially smaller less affluent ones.

3. Rentals

Housing prices will have a short-term jump. That cost of carry will get passed on to renters. Some renters will need to purchase to stay in the area. With limited supply, it will make it non cost effective to rent for many. The loss of workers in the immediate area is a real concern.

4. First Time Homebuyers

This is a toughie. If you are in a rental without savings, it’s a Catch-22. Without more money to buy and possible increased costs coming your way to pay for services, a higher burden could be put on younger people.

5. Savings Overstatement

School taxes are still included in your property tax bill, so the advertised $150,000/$250,000 exemption does not translate into savings of that same amount. The actual tax savings are significantly lower. Critics have argued that this presentation is misleading, alongside broader legal challenges claiming the amendment is unconstitutional or unlawful.

Summary of Estimated Savings

For a $500,000 homesteaded property under average Florida millage rates, the estimated savings are:

2027 Estimated Savings: Approximately $1,000 per year.
2028 Estimated Savings: Approximately $2,000 per year.
Remaining Taxable Base: Your non-school taxable value would drop to $250,000, while school district taxes would continue to be calculated using the property’s taxable value after the standard school exemptions.

My Exemption Check is a useful calculator for estimating your potential savings.

My take is simple: whenever you can reduce your costs, it’s generally a positive. Lower property taxes benefit homeowners. However, what concerns me is that I haven’t yet seen comprehensive independent studies examining the potential short- and long-term impacts. I’d like a clearer understanding of where funding shortfalls could occur and what services, if any, might be affected. Hopefully those studies are completed before voters head to the polls.

As a Realtor, I also think demand to purchase homes could increase significantly if this amendment passes. Buyers who have been on the fence about establishing Florida residency will need to make decisions sooner rather than later. The same applies to renters considering whether they can get onto the property ownership ladder. Planning for this now instead of last minute will be paramount. Remember, it’s not just about purchasing a home before the deadline—you also need to apply for and establish Florida homestead residency. Its a lot to do so start that conversation now as prices could jump considerably by the fall with mad rushes to close on time and get domicille established.

Between unclaimed funds and potential property tax savings, Floridians could have extra money in their pockets next year. With all that extra cash, maybe I’ll even have to reconsider tipping for buying a pack of gum at the airport.