Public Policy Update Immigration Issues for International Buyers August 7 th, 2012

Topics Current visa options for international buyers The retirement visa Prospects for immigration reform

Current Visa Options Tourist Visa (B-2) – visa typically granted for 6 month period Treaty Visa (E-2) – available only to nationals of countries that have the requisite treaty provision with the US

Current Visa Options Employment Creation Visa (EB-5) – an immigrant visa. To qualify, applicant must invest either $1 million or $500,000. Create or preserve at least 10 jobs

Retirement Visa Currently no visa available for a retired person who wishes to live year round in the US Such a visa would stimulate foreign investment

TaxWatch Study A 2009 TaxWatch study showed that the retirement visa will add113,000 to 339,000 jobs over a 10 year period in Florida Contribution to Florida’s GDP will be between $9.1 billion to $27.3 billion

Things that will impact creation of a retirement visa Income Tax Estate Tax Health care Foreign Citizenship laws

Federal Legislation/Regulation VISIT- USA Act Jobs Originated through Launching Travel Act (JOLT) White House Executive Order, Jan ‘12

VISIT-USA Act Creates a Canadian retiree visa (non- immigrant) –Over age 50, Own a residence in the US, Visa to last 240 days and renewable every 3 years Visa Waiver Program Extension Video Conference Pilot Program

VISIT-USA Act Other provisions of the Act –Multiple entry visas for nationals of China –Expediting Priority Visitors –Videoconference pilot program

JOLT Contains some of the components included in the VISIT USA Act Include the retirement visa for Canadians Goal of interviewing 80% of applicants within 3 weeks Increased Visa processing capacity in China and Brazil

White House Executive Order January 19, 2012 Established Visa and Foreign Processing Goals and a Task Force on Travel and Competitiveness

NAR Visa Working Group Set principles as a guide for advocacy efforts to create a non immigrant residency visa for foreign nationals who purchase a home in the US

Outlook for Reform Political Environment means little legislation moves Focus needs to be on economic development versus immigration Work the Executive Branch and regulatory angles as much as possible

Restoring Fairness for All Taxpayers Caps Assessment Increases for Non- Homestead Property First-Time Homebuyer Homestead Exemption Authorizes the Legislature to look at amending “Recapture”

Tax relief for non- homesteaders If approved by voters in November 2012, this proposal would reduce the yearly assessment cap on non- homestead property from 10 percent to 5 percent.

Tax relief for first time homebuyers Anyone who hasn't had a homestead exemption in Florida for three years will have property tax discount of 50 percent of the home's assessed value, not to exceed the median homestead value in the county. This exemption phases out for the property owner over five years while their Save Our Homes is phasing in.

Example of First Time Homebuyer Break Home bought for $250,000 Median home price in county is $150,000 (this is maximum additional exemption) Taxable value in year 1 is: o $250,000 (Purchase Price) o Minus $125,000 (½ of purchase price) o Minus current $50,000 homestead exemption = $75,000 Taxable Value in Year 1 First time exemption portion ($125,000) is reduced by 20% each year as SOH phases in

Restoring Fairness for All Taxpayers Amendment 4 seeks fairness, stability and predictability for Florida’s tax code. The Bottom Line Offers Long-Overdue Balance and Fairness Caps Tax Increases for Small Businesses and ALL non Homestead properties

Recapture The measure authorizes the Florida Legislature consider amending the “Recapture” portion of the tax code.

June 2012

Estimated Economic Impact Creation of 19,483 private non farm jobs Florida GDP would increase by approx. $1.1 billion Personal income would increase by more than $5.3 billion Between 319,861 and 383,810 additional home sales

The Critical Assumptions ELECTORAL ANALYSIS –11.5 million registered voters –75% Turnout – top of the ticket –8.625 million votes turnout – top of the ticket –10% dropoff to A4 –7.76 million vote on A4 –4.66 million to win –3.33 million households

Thank you!