Recently, Rock and Roll Hall of Fame legend Jon Bon Jovi put his Middletown, New Jersey mansion on the market. The New Jersey native bought property in the Palm Beach area last year, causing some to speculate that he may be considering making the Sunshine State his next home. Here are some reasons why Jon Bon Jovi may be considering a move to Palm Beach:
According to a recent report, the taxes on Bon Jovi’s Middletown luxury estate were $281,477 last year while his Palm Beach property carried a much lower $46,466 property tax bill. Additionally, unlike New Jersey, Florida imposes no state income tax for residents. Further, the 2017 Tax Cuts and Jobs Act made changes to the available “SALT” or state and local tax capping the deductions for income, real estate, and sales tax up to $10,000.00. For higher wage earners and owners of multi-million-dollar homes like Bon Jovi, these changes could be incredibly costly.
Palm Beach Migration
The states that have been most impacted by the new SALT tax changes are understandably those which impose an income tax and higher property taxes. Places such as Bon Jovi’s New Jersey, it’s neighbor New York, and close by Connecticut have seen numerous higher-earning residents moving into Florida. Many of these east coast transplants appear to be attracted to the areas in and around Palm Beach where buyers who are used to luxurious living conditions, will find exclusive communities, vast seaside estates, and high-end amenities. Another reason why Palm Beach may be attracting the interests of Bon Jovi and other east coast millionaires is the new trend of major financial firms relocating their headquarters and operations. Several of these types of power house corporations have opted out of high rent places such as New York to move into the business-friendly climate of South Florida.
Whether Jon Bon Jovi will move his family into his Palm Beach estate remains to be seen. However, there appear to be several good financial reasons for him and others with significant income and holdings to leave their high-taxation states in favor of Florida.
Contact the Florida Board Certified Real Estate Attorneys of Rabideau Law
At Rabideau Klein, we have extensive experience handling multi-million-dollar transactions for high-end residential and commercial real estate, land use, finance, cross border, and business formation. Guy Rabideau, Esq. and David E. Klein, Esq. are also Florida Board-Certified Real Estate Attorneys with the expertise and experience you need to protect your interests during your Palm Beach luxury real estate lease or purchase. Contact Rabideau Klein today to discuss your Palm Beach.