NAPLES, Fla. — It's a good bet that many, if not most Floridians, move to the state because of the beaches and sunshine. But could tax laws in other states be driving people to the Sunshine State, seeking a more favorable tax climate?
"Aside from the nice weather and beaches, we've got a little bit of a tax shelter," said Tiffany McQuaid, a Naples realtor.
McQuaid said that New York State's new "mansion tax" has home buyers there paying a one percent tax on million dollar homes, and 3.9 percent on homes there costing $25 million or more.
"So if you're buying a $25 million home in New York right now, you've got a million dollar tax to pay at closing," McQuaid said.
Coming out of tax season, she said realtors are getting calls from buyers in high-tax states such as New York, New Jersey and Connecticut whose accountants are advising them to buy in Florida as a shelter from soaring tax rates.
"Accountants are alerting people: 'you've got to go where you can save the most money,'" McQuaid said.
Of course that creates a demand on homes in Southwest Florida, which could raise home prices, although that may be offset by new home construction.
Realtor Todd Gridley said that a high-tax state out west also has some its residents fleeing to Florida.
"We have a percentage of people from California looking at Florida," Gridley said. "Maybe they were from the east, and now they're moving back."
McQuaid said that while many New Yorkers have traditionally moved to Florida's east coast, she said that slightly higher property taxes there are causing more of them to check out Southwest Florida for more of a tax break.
"Have a little bit of equity," she said. "Enjoy the sunshine, and more importantly, have a tax shelter."
