$314.08 million will be available for
the housing trust funds in Fiscal Year
2018-19.
• If all monies collected are fully appropriated
for housing, it will create
nearly 32,700 jobs and $4.6 billion in
positive economic impact in just one
year, while creating homes that will
last far into the future.
• In the past 25 years, the housing trust
funds have helped more than 200,000
families.
ASSIGNMENT OF BENEFITS >
Reduce Assignment of Benefits (AOB) abuse
that drives up insurance premiums for
property owners.
AOB allows policyholders to assign their
post-loss insurance benefits to a contractor,
such as a water remediation company
or roofer, so the contractor can charge the
insurance company for its work directly.
But a growing number of contractors
have been inflating the cost of repairs.
When the insurance company refuses to
pay the claim, the contractor files a lawsuit.
Insurers typically pay these inflated claims
to avoid the high cost of litigation and pass
the cost onto policyholders.
PERSUASIVE POINTS
• AOB abuse has reached staggering
levels. In 2006, there were 405 AOB
lawsuits. In 2016, that number rose to
28,200, according to the Florida Office
of Insurance Regulation.
• A study of more than 80,000 Florida
insurance claims for water damage
showed the average AOB claim was
approximately $17,000 — 50 percent
more than non-AOB claims.
• Consumers are paying in the form of
higher insurance premiums. In 2014,
37.6 percent of insurance companies
requested rate increases. In 2017,
90 percent of the companies that
submitted their rate requests filed for
increases.
BUSINESS RENT TAX >
Continue reducing the business rent tax.
We applaud the 2017 Legislature for
lowering the sales tax on commercial leases
to 5.8 percent, saving businesses more
than $60 million a year. Florida is the only
state in the country that charges a business
rent tax. These rents are subject to a local
option sales tax as well, which can be as
high as 2 percent.
Small businesses — from the local diner
and hair salon to boutique retail stores —
are disproportionately impacted by the tax.
We urge lawmakers to continue lowering
the tax to provide businesses with the
capital to expand, hire, improve benefits
and raise salaries.
PERSUASIVE POINTS
• Florida’s business rent tax can add up
to 8 percent to businesses’ occupancy
costs, making Florida less attractive to
companies seeking to relocate.
• Many factors play a role in deciding
where to locate or expand a business
— labor costs, a skilled workforce, the
transportation network and taxes. But
taxes are often the tie-breaker, according
to a Florida TaxWatch Report.
FEATURE
• All businesses that rent commercial
real estate pay a business rent tax,
no matter how profitable they are.
A lower rent tax would help startups
and businesses that are struggling
financially.
VACATION RENTALS >
Enact legislation concerning vacation
rentals that treats homeowners equitably
and does not undermine property rights.
Homeowners have made their properties
available as vacation rentals long
before the Internet arrived, but the growth
of websites such as Airbnb and VRBO have
made it easier. These sites have created
new financial opportunities for homeowners
and expanded the options available to
consumers who live in, or travel to, Florida.
However, many local governments view
this exercise of private property rights as
an under-regulated disruption to their
communities and have responded by
attempting to establish new ordinances,
inspections and fees that are designed to
discourage vacation rentals.
There are several stakeholders in the
discussion about vacation rentals, not the
least of which are property owners.
PERSUASIVE POINTS
• Website platforms such as Airbnb,
VRBO, HomeAway and others expand
lodging options for visitors, who also
spend money at restaurants, retail
stores and other local businesses.
• The potential for rental income is
attractive to individuals who buy a
second home for future retirement.
• Since 2014, cities and counties have
passed 38 separate ordinances affecting
vacation rentals, some with the
intent of preventing them altogether.
Several of these ordinances — such
as requiring a background check for
every occupant — make compliance
burdensome.
orlandorealtors.org 17
/orlandorealtors.org