Florida lawmakers consider study on property tax cuts. expansion of homestead exemption
Study eyed for Florida property tax changes
Expect an economic impact study as a first step as discussions ramp up about the future of property taxes in Florida. Gov. Ron DeSantis in recent weeks has called for cutting property taxes, while also criticizing spending by local governments.
TALLAHASSEE, Fla. - Florida lawmakers are considering property tax cuts, with proposals to expand the homestead exemption and possibly eliminate property taxes.
Proposal sparks concerns over funding for local governments
What we know:
Florida lawmakers and Gov. Ron DeSantis are considering a series of proposals to reduce property taxes, with a particular focus on expanding the homestead property tax exemption.
Discussions are in the early stages, with a proposed measure possibly reaching the ballot in 2026. Key proposals include raising the homestead exemption to $75,000 and $100,000 on various levies. The state is conducting an economic impact study to evaluate the potential consequences of these changes.
What we don't know:
The final details of the proposals are still under review, and it’s unclear whether the legislature will approve any measures this year.
The economic impact study, spearheaded by the Legislature’s Office of Economic and Demographic Research, will be crucial to understanding how eliminating property taxes or expanding exemptions might affect essential services, including education and infrastructure. The exact method of replacing the lost revenue — such as shifting to consumption-based taxes — remains uncertain.
The backstory:
Property taxes are a significant revenue source for local governments in Florida, funding services like police, fire, and infrastructure. Florida lawmakers have long debated whether to reduce or alter the state’s property tax system, and DeSantis has been vocal about his desire to cut taxes and reduce government spending.
This year’s proposals are part of broader discussions on fiscal responsibility, with local governments expressing concerns about losing vital revenue and the potential negative impact on public services.
Big picture view:
The debate over property taxes highlights a tension between reducing taxes and maintaining funding for essential services. Local governments argue that changes to the property tax system could lead to inequities, shifting the tax burden to vulnerable populations. Business groups are also watching the proposals, as any shift in tax policy could have implications for Florida's business climate.
Proposal to eliminate Florida property taxes sparks concerns
Gov. Ron DeSantis has proposed eliminating property taxes in Florida, a move that would significantly impact local governments. Property taxes currently fund essential services such as police, fire departments, public schools, and infrastructure. Local officials warn that eliminating this revenue stream could leave cities and counties scrambling to cover costs.
The long-term impact of such changes could shape the state’s fiscal future, making it an important issue for voters.
What they're saying:
Senate Finance and Tax Chairman Bryan Avila emphasized the need for careful consideration.
"We’re really taking our time to make sure that we get it right," Avila said Wednesday after his committee received an overview from staff members about property taxes.
Sen. Kathleen Passidomo cautioned against hasty decisions.
"I think we should caution our members as to the outcomes," Passidomo said about the need to study the potential impacts. "The sooner we do that, the better for our members, so they don’t go down a rabbit hole."
Gov. DeSantis acknowledged that the proposal will take time, explaining that it will take about a year for the state DOGE task force to review local government spending.
"And then I think we're going to be at a great spot to say, ‘OK, what can we get on the ballot? What can get past the Legislature to get on the ballot? And then, what can we marshal 60 percent of the electorate?’" DeSantis said, referring to a 60 percent threshold for passing constitutional amendments.
Local governments, represented by the Florida League of Cities, are concerned about the potential consequences.
"Further changes or exemptions to the property tax system and tangible personal property taxes would create inequities and unfairly shift the tax burden onto families, homeowners, renters, businesses and our most vulnerable population."
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The Source: This story was written based on information shared by The News Service of Florida.