Florida is seeing increased migration from high-tax states such as New York, New Jersey, and California, National Mortgage News reports.
The Sunshine State always has been a favorite of transplants for its weather, beaches and lack of a personal income tax. And while little data is available to quantify the level of tax migration from the north, real estate agents and economic development promoters say that their client lists are burgeoning with out-of-state residents looking to sign contracts.
A bump in activity started with the federal tax overhaul in 2017. Although rates were cut for corporations and individuals, the ability of residents to deduct state, city and property taxes from their federal returns in places like New York, New Jersey and Connecticut was diminished. Other heightened tax obligations are kicking in as well. As of July 1, a three-decades-old "mansion tax" in New York State is being boosted in New York City to help pay for improvements to the city's creaky subway system.
Some Northern states say they're feeling the pain. New Jersey reported a 35% decline in income-tax revenue for December 2018, according to the Wall Street Journal, and blamed the drop on tax policy. And New York Gov. Andrew Cuomo complained in February that the policy change was a "diabolical maneuver" to help red states "at the cost of blue states."