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Florida Real Estate Market

Florida Considers Sweeping Property Tax Reforms, Potential Elimination

Florida capitol building with a house key, symbolizing property tax reform.

Florida lawmakers are advancing a series of proposals aimed at significantly reducing or even eliminating property taxes for homeowners. The Florida House has approved eight bills, seven of which are constitutional amendments slated for the 2026 ballot, signaling a major shift in the state’s approach to funding local services. These measures aim to ease the burden on homeowners, but critics warn of potential shifts in financial responsibility and impacts on essential services.

Key Takeaways

  • Multiple bills and constitutional amendments propose property tax relief or elimination for homesteaded properties.
  • Supporters argue it will put money back into homeowners’ pockets and attract new residents.
  • Critics warn of significant revenue loss for local governments, potentially leading to service cuts or tax increases elsewhere.
  • Most proposals aim to protect funding for school districts and law enforcement.
  • Governor Ron DeSantis has expressed reservations about the number and scope of the proposed measures.

The Push for Property Tax Relief

Fueled by rising property tax bills, Florida Republicans are championing measures to provide relief. Representative Toby Overdorf, R-Palm City, chairman of the House Select Committee on Property Taxes, stated, "Local government property tax is increasing at an unsustainable rate. It is time to put money back in the hands of Floridians." The proposals aim to lower the cost of homeownership and business operation, potentially mirroring the appeal of Florida’s lack of state income tax.

Proposed Legislation and Their Impact

Eight pieces of legislation have been introduced, with seven being constitutional amendments that will require voter approval in November 2026. Key proposals include:

  • HJR 201: Eliminates non-school property taxes for homesteads.
  • HJR 203: Gradually phases out non-school property taxes for homesteads over 10 years.
  • HJR 205: Eliminates non-school property taxes for homesteads for individuals aged 65 and older.
  • HJR 207: Increases the homestead exemption for non-school taxes to 25% of the assessed value.
  • HJR 209: Provides an additional $100,000 exemption for homesteaded properties with home insurance.
  • HJR 211: Increases the Save-Our-Homes benefit portability.
  • HJR 213: Modifies limitations on property assessment increases, capping levies at 3% or the CPI.
  • HB 215: Requires a two-thirds vote to increase property tax rates and revises Save-Our-Homes portability for married couples.

Most of these measures aim to shield school district levies and prohibit reductions in law enforcement funding. However, concerns remain about the impact on other essential services like fire districts and emergency medical services.

Concerns Over Local Government Funding

Local governments and advocacy groups like the Florida League of Cities have voiced strong opposition. State economists estimate that eliminating homesteaded property taxes could cost local governments between $14.1 billion and $18.5 billion annually. Critics argue that this revenue loss would force municipalities to either cut essential services, raise other taxes and fees (disproportionately affecting renters and small businesses), or rely on less stable revenue sources like sales tax, which would need to increase significantly.

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Expert Perspectives and First-Time Buyers

While the focus has largely been on seniors and existing homeowners, some experts, like Dr. Esteban Leonardo Santis from the Florida Policy Institute, argue that property tax reform should also prioritize first-time homebuyers. He points out that current protections like the Save Our Homes law significantly benefit long-term homeowners, creating an "horizontal inequity" for those trying to enter the market. Santis also cautions that eliminating property taxes would likely result in a "cost shift" rather than true savings, potentially burdening other segments of the population.

Governor’s Stance

Governor Ron DeSantis, who has been a proponent of property tax reform, has reportedly called the House’s multiple proposals "milquetoast." He has advocated for a single, more comprehensive measure that would eliminate all property taxes for homesteaded properties, including those funding K-12 schools, with the state potentially backfilling budgets for affected rural counties. However, a detailed plan from the Governor has yet to be released.

Sources

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