ORLANDO, Fla. – Homeowners often experience stress upon receiving their property tax bill in the mail. Failure to pay on time can result in counties placing a lien on the home.
On Wednesday, Florida legislators deliberated on a bill that seeks to abolish property taxes, a proposition that may sound attractive but presents notable challenges.
Property taxes in Florida serve as a crucial revenue stream for vital local government services and infrastructure. This raises the critical query: if property taxes were eliminated, how would the state source alternative funding?
During a Senate committee meeting in Tallahassee, this question was at the forefront. Legislators heard about the realities of replacing property tax revenue.
The Finance and Tax Committee staff presented a PowerPoint overview, highlighting that property taxes fund schools, roads, parks, and safety net programs like fire departments, police, and public hospitals. This revenue is crucial, especially since Florida does not have a state income tax.
Two related proposals — SB 852 and SJR 1016 — were introduced in the Senate on Tuesday. Both take aim at slashing property taxes statewide.
For example, SB 852 aims to put together a study examining the impact of removing property taxes in Florida, potentially replacing them with budget cuts or consumption-based taxes.
Such a study would be required to look at any possible impacts on taxpayer-funded public services, as well as whether a reduction in property taxes might improve the state’s “economic stability.”
But while that bill would only study the impacts, SJR 1016 would put forward an amendment that drastically rewrites how the state’s homestead exemptions are applied.
Under current rules, the state exempts homeowners from property taxes up to a certain level of the property’s assessed value. It works as follows:
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The first $25,000 of assessed value — Exempt from all property taxes
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Between $25,000 and $50,000 of assessed value — Taxable
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Between $50,000 and $75,000 — Exempt from non-school taxes
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Over $75,000 — Taxable
However, this proposal would boost the exemption threshold, making it so that a property is exempt from all property taxes up to $75,000 — a three-fold jump from the existing $25,000 threshold. This includes getting rid of the non-school taxes exemption between $50,000 and $75,000 in assessed value.
The amendment’s sponsor, state Sen. Blaise Ingoglia, said the he posited the bill to help “make housing affordable again.”
“In 1990, your homestead accounted for 32% of the value of your home,” Ingoglia wrote. “Today, your current homestead exemption accounts for LESS THAN 10% of the value of your home! Floridians are demanding property tax relief!”
However, even if Ingoglia’s proposal is approved by lawmakers, it would still need to garner 60% of voters’ support before it could actually be implemented. If passed, the motion likely wouldn’t go before voters until 2026 at the earliest.
In light of these Legislative discussions, News 6 spoke with Angel de la Portilla, owner of Central Florida Strategies, a government relations and consulting firm, and he shared some insights on the issue.
“The proposal is to replace property taxes with an increase in sales tax,” de la Portilla said. “But the question for the counties and cities across the state is whether or not the revenue they would be receiving is the same. If it does, it is worth looking at. If it doesn’t, it’s going to have an impact on our cities and counties in Florida.”
Some believe that shifting to higher taxes on goods and services could disproportionately affect consumers, particularly those with lower and middle incomes or those who do not own property. After all, sales taxes could have a disproportionate impact on these groups as compared to wealthier households.
On the flip side, opponents of property taxes argue that they unfairly target homeowners, who have already taken on all of the other burdens that come with homeownership. Worse yet, tax incidence means that the cost of these taxes could even end up falling downstream to lower-income renters who make use of these properties.
The assessed value of a home significantly impacts property tax bills, with some counties experiencing more significant hikes due to rapidly growing home values.
Last month, the issue gained significant traction after Florida Gov. Ron DeSantis began pushing for the removal of property taxes via social media and during news conferences.
During one such conference, he pointed to rising home prices — sparked by a combination of demand spikes and inflation — though he said he plans to work with the Legislature before his term ends in 2027 to potentially get a constitutional amendment on the ballot to address issues like the homestead exemption.
“We can’t control private markets, but we can control how much they can tax you. So we’re going to be working over the next year and a half to see what we can present for voters to be able to vote in the next election for some major, major property tax limitations and reliefs,” DeSantis said.
As the debate continues, the implications of such a shift remain a critical topic for Florida’s future.
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