By Carole Hawkins, Staff Writer
The number one bill Northeast Florida Realtors want to see state lawmakers pass this year is a phase out of the 6 percent sales tax for renting commercial space.
"Florida is the only state that still charges it, said Rory Durbin, a Realtor for Coldwell Banker Vanguard Realty. "It puts us at a competitive disadvantage."
Northeast Florida Association of Realtors in March took 44 of its members by bus to Tallahassee for the Great American Realtor Day. It was a chance to tell lawmakers how upcoming legislation will affect the real estate industry in their district.
Sponsored by Florida Realtors, the state association, the campaign each year gives Realtors across Florida access — in 15-minute increments — to each member of their local delegations. In the case of NEFAR, that includes delegates from Clay, Putnam, St. Johns and Duval counties.
In preparation, NEFAR sponsored a three-hour lunch session a week before the event to brief Realtors on this year's legislative proposals. Julie Bentley of Watson Realty attended the session for the first time.
"I'm excited about it, my broker said it's a really interesting thing to do," she said. "I think our political action committee is a very loud and vocal group and we have a lot of influence."
Durbin, who leases and sells both commercial and residential properties, said Realtors support phasing out the commercial rent sales tax because it would lower the cost of doing business.
"Any time you have sales tax on any kind of real estate transaction, it's going to affect volume and affordability," he said.
Mom-and-pop stores like hair salons and restaurants are affected by the tax, but it also impacts big industries that might consider a move to Florida, Durbin said.
"One of the things businesses look at when deciding whether to come to a state is its sales tax structure," he said. "If you're a big company, it may be the first thing you use to cross a location off of the list."
Bills filed in the Senate and House would lower the commercial sales tax by 1 percent starting in 2015.
Gov. Rick Scott has shown support for the idea. He has said he would like to spend $100 million of the state's projected $500 million surplus to phase out commercial rental tax, said John Sebree, senior vice president of Public Policy for Florida Realtors.
But, legislators have also proposed a wish list of tax cuts that cumulatively add up to $3.7 billion.
Also, Scott's signature tax cut — repealing the increase in the auto tag license fee — has now gained traction among lawmakers. That tax cut costs $400 million.
"If the Legislature does only $100 million more for tax cuts, we'll be up against some pretty stiff competition," Sebree said.
On the Realtors' agenda for the Great American Realtor Day
• Lower tax on commercial leases by 1 percent. Bills filed are SB 176 and HB 11.
• Ask that money collected in the Sadowski Trust fund for affordable housing be used only for its earmarked purpose, instead of being swept into general revenue. Bills filed are SB 1090 and HB979.
• Develop a private insurance market alternative to the National Flood Insurance Program. Reforms to the national program have hit some Floridians with huge increases in premiums. Bills filed are SB 542, HB 581 and HB 789.
• Support creation of comprehensive state-wide water policy.