State Representative Ryan Chamberlin has introduced a comprehensive proposal aimed at eliminating property taxes across Florida. The "Freedom 1-2-3 Plan" seeks to replace the revenue generated by property taxes with a combination of transaction fees, sales taxes, and other surcharges, potentially offering significant relief to homeowners.
Key Takeaways
- Proposal aims to phase out property taxes entirely.
- Replaces lost revenue with transaction fees on real estate and tourism, plus a school sales fee.
- Includes a rollback of current property tax rates.
- Aims to shift tax burden, partly to tourists and consumers.
The "Freedom 1-2-3 Plan" Explained
Representative Chamberlin’s ambitious plan, dubbed "Freedom 1-2-3," is designed to eliminate property taxes by introducing new revenue streams. The proposal is divided into three main components:
- Rollback: The first step involves legislatively rolling back property tax rates to 2022 levels. This action alone is projected to reduce the total funds needed by billions, offering immediate relief to property owners who have seen significant increases in recent years.
- Transaction Fees: The plan introduces a 5% transaction fee on all real estate sales. This one-time fee, which could be financed at closing, is intended to replace a substantial portion of property tax revenue. Additionally, a 5% public safety transaction fee would be applied to travel and tourism-related expenses, such as hotel stays, rental cars, and amusement park tickets, aiming to capture revenue from visitors.
- School Sales Fee: The final component proposes a 2-cent statewide sales fee dedicated to school funding. School districts would have the option to levy an additional cent to cover any funding gaps, maintaining some local control while shifting the funding mechanism away from property taxes.
Funding the Proposal
Chamberlin’s plan targets the approximately $43 billion in county non-school and school property tax levies that would need replacement after the initial rollback. The proposed transaction fees are estimated to generate significant revenue: nearly $12 billion from real estate sales and approximately $3.8 billion from tourism-related transactions. The 2-cent school sales fee is projected to bring in around $20 billion.
Potential Impact and Challenges
Proponents argue that this plan could make Florida the "freest state in the country" and eliminate "the most hated tax in America." However, the proposal faces significant hurdles. Shifting the tax burden to consumers and tourists could disproportionately affect lower and middle-income individuals. Furthermore, implementing such a significant change would likely require constitutional amendments and broad public and legislative support. Chamberlin acknowledges the political risks but emphasizes the need for a concrete starting point to debate property tax reform.
Next Steps
Representative Chamberlin plans to file legislation for the rollback component in the upcoming session. The broader revenue replacement measures, particularly those requiring voter approval, will likely be a focal point for debate among lawmakers and the public as the legislative session approaches.
Sources
- This plan could ‘wipe out’ property taxes, state rep says, WPTV.
- North Central Florida state representative wants to eliminate property taxes, WCJB | TV20.
- Florida lawmaker wants to eliminate property taxes. Here’s how, WKMG.
- Ryan Chamberlin rolls out plan to get rid of property taxes, Florida Politics.
- Rep. Chamberlin proposes ‘Freedom 1-2-3’ plan aiming to phase out property taxes in Florida, Florida’s Voice.