Through the U.S. and state constitutions, each state government has the right to regulate a person’s behavior or property to protect the health, safety, welfare, and morals of the community. The government may apply restrictions necessary to regulate the use of real property.
Examples of such regulations include zoning, building codes, city planning, health standards, and rent controls.
County, city, and local governments may exercise police power as delegated by the state government.
Examples of the use of police power include inspections of certain construction work for building code violations, preserving historic structures to comply with zoning laws, and restricting land-use to comply with city planning regulations.
Unlike eminent domain, property owners are not typically compensated when the government takes possession of part or all of the owner’s land. Police power is the broadest power of the government to limit property owners’ rights.
As mentioned previously, government entities have the power of eminent domain to purchase a fee, leasehold, or easement interest in privately owned real property for the public goodand for public use, regardless of the owner’s desire to sell or otherwise transfer any interest. In exchange for the interest, the government must pay the owner “just compensation.”
While there is no state income tax in Florida, homeowners are taxed when renting their property, when selling the property, and when they simply own the property. Owners with rental properties may be taxed on net profits from rental income and may be charged sales tax on short-term rentals. Owners who sell their property and realize a profit may be charged a capital gains tax on that profit. Additionally, local governments charge owners an annual property tax based on the value of the property. Property taxes help fund public schools and municipal infrastructure, including roads and emergency services. Owners may face foreclosure if they fail to pay their property taxes.