$32.8 million worth of documentary stamp tax was collected in Florida this November

$32.8 million worth of documentary stamp tax was collected in Florida this November

Last month, documentary stamp tax for title deeds issuance brought $32.8 million into Florida’s budget, which is 23.9% less than expected. This reflects a decline in sales of single-family houses in this state by 38.2% compared to 2021. Condominium and townhouse sales reduced by 38.9%.

Last week, the industry association Florida Realtors noted that the real estate market was struggling because of high mortgage rates that still exceeded 6%.

Brad O’Connor, Chief Economist at Florida Realtors, explains that such high rates had a negative effect on homebuyer demand across the USA. Specifically in Florida, the situation has been getting worse after this rate surpassed 6% in October. It is therefore no surprise that fresh statistical data on November sales closures reflects the continuation of this trend.

The December forecast is not favorable either, as interest rates approached 7% last month. Contracts for deals planned for closure in the last month of the year were signed in November.

The state tax collection in November 2022, however, was 14.1% better than forecasted. The Florida budget received $3.625 billion, which is $447.2 million more than planned. Sales tax collection exceeded expectations by 412.1 million.

The reason is probably the short-term surge of expenses connected with recovery, repair, and new construction after Hurricane Ian. The state can now channel the excessive funds to improve homeowners’ situation and meet other needs.

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