The End Of Property Taxes?

Can Florida Really Eliminate Property Taxes?

Hello, Florida residents! There’s been a lot of buzz lately about the possibility of eliminating property taxes in our state. Governor Ron DeSantis has expressed support for this idea, stating, “Is it your property or not? You’re basically paying rent to the government to live on your own property.”

How Could This Work?

Eliminating property taxes would require a monumental shift in our tax system. Estimates suggest that Florida would need to find an additional $43 billion to maintain current public services without property tax revenue.

This could mean significant increases in sales taxes or other forms of taxation. For instance, experts warn that replacing the $40 billion loss could require doubling the sales tax, impacting everyday Floridians.

Legislative Actions Underway

To explore this concept further, Senator Jonathan Martin has filed Senate Bill 852, which proposes a study on eliminating property taxes and replacing the revenue with sales tax increases and budget cuts. However, it’s important to note that a similar bill failed to advance last year, and it’s uncertain whether this new proposal will gain traction.

Additionally, Senate Bill 1016, sponsored by Senator Blaise Ingoglia, aims to increase the homestead exemption from $25,000 to $75,000. If approved, this measure would appear on the 2026 ballot and, if passed by voters, take effect in January 2027.

Potential Impact

Eliminating property taxes could have significant implications for local governments, which heavily rely on this revenue to fund essential services like police, fire departments, schools, and infrastructure. Without this funding, services could be reduced, or alternative revenue sources would need to be identified. Some experts view the proposal as a “risky proposition,” suggesting that it could weaken local governments by removing a primary revenue source.

One major concern is school funding. Currently, property taxes contribute significantly to public education budgets. If property taxes were eliminated or reduced, lawmakers would need to find alternative funding sources to ensure that schools receive adequate support. Possible solutions could include increased state funding, reallocating other tax revenues, or raising sales taxes. However, the impact on school quality and resources remains uncertain.

Looking Ahead

As the 2025 legislative session unfolds, it’s crucial to stay informed about these developments. While the complete elimination of property taxes may be ambitious, discussions around tax reform are ongoing. For instance, House Joint Resolution 1257 proposes a constitutional amendment to provide property tax benefits for certain residential properties subject to long-term leases, aiming to extend homestead exemptions to these properties.

Conclusion

The debate over property tax elimination in Florida is complex, involving potential shifts in taxation, funding for public services, and constitutional considerations. As discussions progress, it’s essential for residents to engage with the legislative process, understand the potential impacts, and voice their opinions to ensure that any changes serve the best interests of all Floridians.

Thoughts?

What do you think about eliminating property taxes in Florida? Would the benefits outweigh the potential downsides? Let me know in the comments! If you have any real estate questions or are looking to buy or sell in Florida, feel free to reach out.

Ryan Tesnow, MPA
Realtor • Coldwell Banker
394-B N. Causeway | New Smyrna Beach, FL, 32169
Office: (386) 427-3602 | Cell: (254) 206-5020