Marine industry leaders are cheering the passage of Amendment 6, a state measure that stipulates working waterfront property be taxed at its actual usage – not its “highest and best” potential.
Amendment 6, which received an overwhelming 70.5 percent voter approval, will protect the state’s considerable maritime sector against property assessments that skyrocketed throughout the real estate boom.
“It’s great to see all the grassroots efforts have paid off and common sense has prevailed,” said Frank Herhold, executive director of the Marine Industry Association of South Florida, which represents businesses that service the region’s recreational boaters. “Florida, as a state, has demonstrated that public access to the waterfront is a big priority.”
Recreational aspects of the maritime industry (marinas, boat yards, etc.) have an $18.4 billion impact statewide, Herhold said, with the tri-county area generating $13.6 billion of that.
Fran Bohnsack, executive director of the Miami River Marine Group, also praised the amendment’s passage.
“Many of these businesses have had their taxes grow two or three times what they were just a few years ago,” she said.
The river’s unique businesses – which includes smaller shipping terminals in what is considered Florida’s fourth-largest port – stand to benefit under the measure. In recent years, river businesses have fought to maintain protections as real estate proliferated northwest from the downtown Miami boom.
Bohnsack said she was concerned that the wording of the amendment may be somewhat ambiguous when it comes to protecting shipping facilities along with marinas and boat repair facilities. But, she said she’s confident the amendment will offer broad protection to maritime interests.
The vote comes as welcome relief for Miami River businesses that have been hit hard by declining shipments to Caribbean nations and high fuel prices.
Richard Dubin, whose Haiti Shipping Lines terminal is on the lower end of the river, near downtown Miami, was among those impacted by the higher taxes, a decline in shipping to the Caribbean and higher fuel costs.
Dubin said economic conditions have driven his business down about 35 percent compared to a year ago, and the typically brisk Christmas shipping season looks soft this year.
Adding to the strain, Dubin’s annual property taxes are now somewhere between $120,000 and $130,000, up from $40,000 two years ago, he said.
“Maybe someday, someone will knock this down and build a $2 million house,” he said. “But, until then, this is where I’m working.”
source:
South Florida Business Journal - by Bill Frogameni
Fort Lauderdale Real Estate Blog & Homes For Sale
Rory Vanucchi
www.Las OlasLifestyles.com
RoryVanucchi@gmail.com
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