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SRQ DAILY Jun 23, 2018

"What it means for out-of-state retailers is that sales tax nexus is no longer solely based on a physical presence standard."

- Shane M. Finn, HBK CPAs & Consultants
 

[Under The Hood]  Can Dems Deliver on Recruiting for Legislature
Jacob Ogles, jacob.ogles@srqme.com

With candidate qualification over and ballots largely set for this fall, you see evidence Democrats on the Gulf Coast and throughout Florida remain more optimistic and organized than they have been in years. Will that translate into success for the blue team here and elsewhere? Well, the particular make-up of jurisdictions still presents more challenges than opportunities for a party that’s been out of power for decades at the state and local level.

Still, Democrats certainly took a major step toward relevance with solid recruitment. This year, there’s no part of the state where Democrats will skip state legislative races. At least one Democrat filed for all 22 state Senate seats up for grabs this year. Republicans in contrast left five districts uncontested. That’s similar to the organization we see regarding Florida’s Congressional competitions.

The difference in party participation in the other state chamber is less stark. Democrats this year won’t run a candidate in 12 of 120 state House races this year, but Republicans will sit out contests in 31 districts. Of course, gerrymandering of more compact House districts in Florida means a lower percentage of districts will be competitive.

But here, most Gulf Coast district will see a contest in November 2018. Only one district, Rep. Wengay “Newt” Newton’s heavily Democratic District 70, will see a winner crowned after the August Democratic primary. In every other House and Senate district, qualified Democrat and Republican candidates run with the full-throated support of their party. As it happens, not a single Republican incumbent will run for their old state legislative seat. Does that mean a Democratic wave this November could remake political representation here? Not so fast. It’s higher ambitions and term limits opening local seats, not fear of defeat.

Certainly, Democratic Rep. Margaret Good’s nationally celebrated victory in a special District 72 election in February inspired many candidates to roll the dice this year. Yet, a look at the particular contests on the Gulf Coast shows Good, who will most likely face former Rep. Ray Pilon in November, may be the only district genuinely in play. Remember, Good is still in a district Donald Trump won by 4.6 percent in 2016. And the president carried every other district here by double digits.

Will Robinson, the Republican running to succeed retiring Rep. Jim Boyd’s District 71, faces Democrat Tracy Pratt in a jurisdiction Trump won by 11.3 percent. State Rep. Joe Gruters looks for a promotion to senator in District 23, where Trump won by 14.4 percent, so he holds a significant edge over Democrat Faith Babis. Republicans in Districts 73 and 74 may see real battles in the primary, but those districts went to Trump by more than 20 points. Similarly, both Sarasota and Manatee tend to deliver victories to Republican candidates running countywide.

Yet Good's 7.4-percent victory in February showed that a Trump district in 2016 isn’t necessarily happy with Republican control today. I don’t expect any race to go as solidly red in November 2018 as they went in November 2016. And based on candidate qualification and fundraising thus far, Democrats don’t plan to cede any local seat.

Jacob Ogles is contributing senior editor of SRQ Media Group. 

[On Law]  Supreme Court Decision Will Cost Consumers
Shane M. Finn

Do you shop online? Get ready to pay a little more. The U.S. Supreme Court has ruled that a state can make retailers charge and submit taxes on goods they sell into that state, even if they do not have a physical presence in it. In Wayfair v. South Dakota, the Court concluded that the “sales tax nexus” previously articulated by the Court in Quill v. North Dakota is “unsound and incorrect.” That ruling held that a state cannot require an out-of-state seller with no physical presence in the state to collect and remit sales taxes on goods the seller ships to consumers there.

What it means for out-of-state retailers is that sales tax nexus is no longer solely based on a physical presence standard. Out-of-state sellers that meet minimum standards can be required to charge, collect and remit sales tax. Each state sets its own standards. In South Dakota, the minimum standards are $100,000 in sales or more than 200 transactions over a 12-month period.

The winners are local brick and mortar businesses, which will be able to compete pricewise with online retail giants. States and municipalities stand to gain billions of dollars in annual revenue. The losers are small online retailers who could be devastated by new compliance costs.

HBK's Tax Advisory Group (TAG) will provide updates about the decision as they become available.

Shane M. Finn directs HBK CPAs & Consultants State and Local Tax (“SALT”) Practice. He is a member of the firm’s Tax Advisory Group based in the Mid-Atlantic Region. HBK CPAs & Consultants has offices in five Florida cities, including Sarasota. 

[On Real Estate]  Luxury Tier Continues Growth Pattern
Michael Moulton

The whole of the Sarasota Real Estate Market continues to experience measured growth in sales, price appreciation and generally stable inventory conditions. But it is in the luxury tier—properties for sale over $1 million—where activity has been consistently showing year-over-year growth of some significance.

What has been especially noteworthy in the Sarasota Real Estate Market this year is the completion of several spectacular new condominium projects, which have begun welcoming residents over the last six months. These developments, as well as other existing luxury condo residences had an increase in sales of more than 95 percent in the first four months of the year, when compared to the same period in 2017. By comparison, single-family homes in the over-$1-million category increased 24 percent over prior year. 

Another remarkable piece of data is in pending sales, those properties put under contract in the month but not yet closed. According to Trendgraphix, million-dollar-and-above condominiums have shown consistently high growth over prior year with an average of 77 percent more pending contracts signed each month in 2018 compared to last year. Keeping an eye on pending contracts is key to being able to project sales activity in the one to three months ahead.

Also of note is inventory of available luxury condos in the Sarasota Real Estate Market. Using the first four months of the year, the area is averaging 27 percent less inventory of million-dollar condo properties on the market. In contrast, inventory of luxury single-family homes is averaging 27 percent more monthly inventory when compared to last year.

The luxury condo market could be said to have been “disrupted” by the addition of the new buildings, but with others currently under construction and several more in various stages of design and development, I believe the trends we have seen thus far in 2018 are likely to become the norm over the next couple of years. There has been great pent-up demand from both in-market and out-of-market buyers wanting to buy new construction, and with years of no new product coming to market, I believe there is great promise for luxury condo absorption. 

I am finding a desire from current residents on the keys to want to relocate to downtown Sarasota and some new east County developments. In addition, there are many “baby-boomer” local clients looking for the lower-maintenance, privacy and security, and especially luxury-hotel-like services and amenities of today’s condominiums, instead of maintaining a large single-family home.

When looking at where the majority of our non-residents are coming from—the northeastern U.S., as well as Canada and the U.K.—Sarasota Real Estate is a great value/investment in comparison to their home communities, with an incredible bonus of the extraordinary Sarasota lifestyle. Luxury buyers are no longer just seeking prime locations; lifestyle has become a primary factor in where to make their investments. The ultra-wealthy have also become increasingly mobile with easy global travel and tech advances allowing them to work remotely, allowing them to spend more time in their preferred location.

The Federal Reserve released a recent report identifying there are 12.6 million U.S. households that rank in the nation’s top 10 percent level of wealth, defined as having more than $1.2 million in total assets. Market analysts used this information to assert that there are more potential wealthy buyers than ever before.

Michael Moulton is a certified residential specialist broker-associate with Michael Saunders and Company. 



[SCOOP]  JFCS honors dads at 4th Annual Healthy Fathers Reunion

More than 40 fathers and their families gathered together June 16 for the Jewish Family & Children’s Service (JFCS) of the Suncoast’s 4th Annual Father’s Day Reunion. Made possible through a grant from the Barancik Foundation, the event honored and recognized dads who have completed the JFCS “Healthy Fathers” program, a free 13-week program open to any male adult 15 years or older. Guests enjoyed a special barbeque lunch, card making, face painting, family photo sessions and a paper airplane contest that teamed up a dad and child to compete against other two-person family teams. Helping fathers embrace the responsibilities of fatherhood and their important role in the development of their children is an integral part of the JFCS mission. 

JFCS of the Suncoast

[SCOOP]  Extra Help Medicare Savings Programs

More than 2 million senior Americans are receiving letters from the Social Security Administration about programs that could help pay their health care expenses, including approximately 4,700 in Sarasota County. Recipients of these letters are likely eligible for Extra Help, a low-income subsidy program for Medicare Part D prescription benefits or other Medicare Savings Programs. The Area Agency on Aging for Southwest Florida (AAAASWFL) wants to reassure seniors that these letters from the Social Security Administration are legitimate. Recipients are encouraged to contact the SHINE (Serving Health Insurance Needs of Elders) program to determine if they are eligible and receive application assistance. The program’s counselors provide free, unbiased and personalized assistance with Medicare, Medicaid, prescription drug plans and long-term care insurance. Offered locally through the AAASWFL and a program of the Florida Department of Elder Affairs and national SHIP Program, SHINE empowers seniors, their caregivers and family members to make informed decisions about health care coverage. 

Florida SHINE

[SCOOP]  All Faiths Food Bank Uses Creative Solutions to Feed Children This Summer

Through its Campaign Against Summer Hunger, All Faiths Food Bank is partnering with over 150 local organizations to feed nearly 40,000 school-aged children and their younger siblings at risk of going hungry this summer. The hiring of the community outreach workers will expand the reach to include invisible children; newborn to five years who are not tallied in the school system’s list of children qualified for free or reduced lunches during the school year. They will cover North Sarasota, South Sarasota and DeSoto counties, distributing food at schools such as Fruitville Elementary, Brentwood Elementary, Riverview High, Booker Middle and more. Weekly-updated distribution schedules and information on locations providing food and meals over the summer months can be found on the All Faiths website. 

All Faiths Food Bank

[SCOOP]  Goat Yoga For a Cause Makes a Return

Calling yogis and animal lovers alike! Pineapple Yoga Studio will be hosting its second Goat Yoga for a Cause on July 29 at 10am. Participants are encouraged to register online prior to the event, as the previous event sold out weeks in advance. Join 10 to 13 goats for a 60-minute class to support community efforts at the studio like yoga teacher training scholarships and supporting free yoga classes for the community. 

Pineapple Yoga Studio

[SCOOP]  Residents Encouraged to Sign Up for CodeRED Emergency Notifications

Residents of Sarasota are encouraged to sign up to receive important messages and severe weather warnings as the 2018 Atlantic hurricane season begins June 1. CodeRED registrants can receive calls, emails or text messages about weather alerts, water or sewer interruptions, major traffic detours, evacuations or other events that could impact their properties and neighborhoods. The system also includes an opt-in Weather Warning option, which issues notifications for tornado, flash flood and severe thunderstorm warnings in their area. Anyone with a physical address can sign up by visiting the Sarasota County Website at www.scgov.net/codered

The City of Sarasota

[KUDOS] 

The Commission on Cancer (CoC), has granted national accreditation to Sarasota Memorial Health Care System’s expanding cancer program. This prestigious recognition is awarded sparingly to cancer programs that meet more than 30 CoC quality care standards and maintain levels of excellence in the delivery of comprehensive patient-centered care. Sarasota Memorial is among the top cancer programs in the nation, maintaining continuous CoC accreditation since 1988. Sarasota Memorial CEO David Verinder credits the 30 years of continuous accreditation to the diligence of SMH’s cancer team and its dedication to providing patients with highly specialized, comprehensive care from prevention, early diagnosis and cancer staging, to evidence-based treatments, rehabilitation and life-long follow-up. The system also provides access to clinical trials, genetic counseling, psycho-social support, patient navigators and the Thrive program, which offers an array of therapies and ongoing support to improve cancer survivors’ quality of life after treatment.    

Sarasota Memorial Hospital

SRQ Media Group

SRQ DAILY is produced by SRQ | The Magazine. Note: The views and opinions expressed in the Saturday Perspectives Edition and in the Letters department of SRQ DAILY are those of the author(s) and do not imply endorsement by SRQ Media. Senior Editor Jacob Ogles edits the Saturday Perspective Edition, Letters and Guest Contributor columns.In the CocoTele department, SRQ DAILY is providing excerpts from news releases as a public service. Reference to any specific product or entity does not constitute an endorsement or recommendation by SRQ DAILY. The views expressed by individuals are their own and their appearance in this section does not imply an endorsement of them or any entity they represent. For rates on SRQ DAILY banner advertising and sponsored content opportunities, please contact Ashley Ryan Cannon at 941-365-7702 x211 or via email

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