DeSantis Plan to Eliminate Property Taxes Could Turn Florida into a Buyer’s Paradise

Florida’s Bold Move to Eliminate Property Taxes: What It Means for Homeowners and the Economy

Florida Governor Ron DeSantis has proposed an ambitious plan to eliminate property taxes in the Sunshine State, potentially making Florida the only state in the U.S. with no state income or property tax. While this initiative aligns with Florida’s reputation as a "free state," experts and stakeholders are weighing the benefits against potential challenges.

What Is Florida’s Proposal on Property Taxes?

In March 2025, Governor DeSantis unveiled a multi-faceted approach to reform Florida’s property tax system, which includes:

Completely eliminating property taxes for homeowners.
Introducing a $500,000 homestead exemption (up to $1 million for seniors).
Capping property assessment increases at 15% annually.
Issuing $1,000 rebate checks to homestead owners as an immediate relief.

This bold tax reform aims to ease the financial burden on homeowners, providing much-needed relief as property taxes are often viewed as an ongoing “rent” paid to the government.

"Property taxes effectively require homeowners to pay rent to the government," said DeSantis in his official release.
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Industry Leaders Weigh In: Support and Concerns

Key real estate figures such as Phil Gutman, President of Continuum Realty, Budge Huskey, CEO of Premier Sotheby’s International Realty, and others have shared their perspectives:

Phil Gutman expressed strong support:

"I welcome it. I think it would be great. It’s creating a perfect storm for us to be flooded with buyers. Why wouldn’t you want to move here at that point?"
Budge Huskey emphasized the need for a balanced, data-driven approach:

"Lower taxes are better as long as it is done sensibly and allows for necessary investments to maintain quality of life."

Potential Challenges Highlighted by Experts:

Revenue Shortfall:
The Florida Policy Institute reports that property taxes generate $55 billion annually, which funds crucial county services, municipal operations, and up to 60% of public education financing. Eliminating property taxes would necessitate finding alternative revenue sources, such as doubling the current 6% sales tax to as high as 12%.
Impact on Local Governments:
Huskey points out:

"Eliminating property taxes strips municipalities of local funding decisions. Who will pay for roads, schools, and police services?"
Equity Concerns:
The proposal disproportionately favors wealthier residents who benefit more from tax elimination, raising questions about its regressive effects on lower-income households.

Possible Solutions and Alternatives

DeSantis has hinted at introducing an entry tax for new residents to compensate for lost local revenues caused by abolishing property taxes. This could serve as a mechanism to balance attracting new taxpayers without overwhelming local infrastructure.

Gutman commented:
"It depends on how much the entry tax would be. At some point, you have to be willing to pay some fee or tax to support community services."

Impact on Florida’s Real Estate Market and Economy

Florida’s housing market is experiencing significant growth fueled by an influx of financial and technology professionals relocating since the pandemic. The tax reforms could further accelerate this trend:

Increased homebuyer interest: Lower taxes may entice buyers primarily from high-tax states.
Enhanced business environment: Maintaining Florida’s balance between a business-friendly climate and high quality of life is crucial to retention and growth.

Key Considerations for Floridians and Lawmakers

Financial Feasibility:
Any tax reform must be backed by transparent, data-driven fiscal analysis to ensure the state can maintain essential services.
Legislative Approval:
Constitutional protections require voter approval of these changes by 2026; meanwhile, immediate relief programs like rebate checks are proposed.
Local Government Funding:
Finding alternative funding methods to support public services is essential to avoid deteriorating living conditions.

Conclusion: A Balanced Path Forward

Florida’s initiative to eliminate property taxes is groundbreaking and could reshape its economic landscape. While lower taxes attract residents and businesses, replacing the substantial revenue loss remains a complex issue requiring careful planning.

As real estate experts suggest, thoughtful and responsible implementation based on real numbers will be key to preserving the Sunshine State’s lifestyle and financial health.

For those interested in following current tax policies and real estate developments, the Florida Department of Revenue and the Florida Policy Institute offer ongoing insights.

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