The Future of Property Taxes in Florida: A Potential Shift?

Introduction

In Florida, property taxes have been a staple for funding essential public services. However, recent thoughts shared by Governor Ron DeSantis on social media have sparked conversations about the possibility of reforming or even eliminating these taxes.

Governor DeSantis’ Proposal

On February 13, 2025, Governor Ron DeSantis emphasized in a tweet that property taxes are primarily determined at the local level. He highlighted the necessity for a constitutional amendment to either eliminate or reduce property taxes, a move that would require the approval of 60% of voters:

“Property taxes are local, not state. So we’d need to do a constitutional amendment (requires 60% of voters to approve) to eliminate them (which I would support) or even to reform/lower them…”

Public Opinions on Property Taxes

Opinions on property taxes vary widely. For instance, Daniel Sharps voiced his belief that property taxes are unnecessary, referencing his support for former President Trump’s proposals to abolish them:

"I don’t feel that they’re necessary. That’s one reason why I voted for Trump was because he said he would do away with all that."
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The Role of Property Taxes

Amir Neto, Director of the Original Economic Research Institute at Florida Gulf Coast University, provides insight into the essential functions of property taxes:

Funding for Local Services: Property taxes support public schools, infrastructure, libraries, and various local government programs.

Consequences of Eliminating Property Taxes

What would happen if property taxes were no longer collected? Neto highlights critical points:

Loss of Revenue: Without property taxes, the government would either need to cut spending or find alternative revenue sources to maintain essential services.
Reliance on Sales Taxes: A shift away from property taxes would mean an increased dependence on sales taxes. This presents its own challenges:
- Flat Tax Structure: Sales taxes are the same percentage regardless of income level. As Neto explains, this can disproportionately affect lower-income individuals:
"The sales tax is a flat tax. No matter if you make $100,000 or $10,000, it’s that same 6%."

Economic Implications

The implications of relying more heavily on sales tax revenue include:

Increased Economic Activity Required: Higher sales taxes necessitate greater economic activity to support public services effectively.
Effect on Equity: The burden of a flat tax system can lead to economic inequalities, making it critical for state lawmakers to consider the broader fiscal impact.

Conclusion

While the discussion around property taxes in Florida is largely theoretical at this stage, the potential for change remains. To transform these ideas into reality, any proposed amendment would need to appear on the ballot and gain support from at least 60% of voters. Until then, property taxes continue to play an integral role in funding essential public services across the state.

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