Higher property taxes 'possible' in Florida

Property taxes in Miami, Florida may increase as a result of the global economic downturn.

Tim Padgett of Time magazine reported this week that mayor Carlos Alvarez could up the levy in the near future as the state struggles with budget problems.

Florida has typically relied on property taxes to support its economy, but the housing market crash over the last two years has had a major impact on its finances.

And despite one in four homeowners in some parts of the state being at least a month behind on their mortgage repayments, Mr Alvarez has stated that without increasing property tax "it's almost impossible that we can achieve an acceptable budget".

Florida Tax Watch research director Kurt Wenner called the situation of falling house prices but increasing taxes one of the recession's "frustrating paradoxes".

Earlier this month, the Gerson Lehman Group suggested that international property buyers are exhibiting signs of confidence over the prospects of a Florida housing market recovery.

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