In an effort to change the state’s financial structure, Florida Governor Ron DeSantis has set his sights on doing away with property taxes. His plan is presented as a daring way to alleviate homeowners’ financial burdens, given that property tax revenues have increased by 40% in just four years.
However, since property taxes bring in $50 billion for local governments each year, this change poses a significant obstacle. These monies support essential services, law enforcement, and schools, which raises questions about possible funding shortages. How Florida will replace this revenue without increasing other taxes is still the key question.
Dissecting Florida’s Property Tax Structure
The following are the issues surrounding DeSantis’ property tax reform:
| Category | Details |
|---|---|
| Governor | Ron DeSantis |
| Proposal | Eliminate property taxes in Florida |
| Annual Revenue Loss | $50-$55 billion |
| Primary Uses of Property Tax Revenue | Schools, law enforcement, utilities, public services |
| Proposed Replacement Revenue | Sales tax increases, government budget cuts, potential tariffs |
| Legislation Timeline | Potential referendum in 2026 |
| Key Supporters | Rep. Ryan Chamberlin, Sen. Jonathan Martin |
| Key Opponents | Sen. Kathleen Passidomo, Florida Policy Institute |
| Current Property Tax Growth | 40% increase over four years |
| Risk Factors | Funding gaps, service cutbacks, reliance on state-controlled funding |
| Projected Impact on Schools | Severe funding deficits without alternative revenue sources |
Source: Florida Policy Institute
Why Do Property Taxes Need to Be Removed? The Case for Reform
For many years, property taxes have been a source of conflict for homeowners in Florida. DeSantis contends that lowering or doing away with these taxes will relieve financial strain and increase access to homeownership in light of the state’s worsening housing affordability crisis.
- Affordability of Housing and Economic Development
Property tax cuts, according to supporters, will boost economic growth, draw in new residents, and encourage investment. They contend that since Florida already attracts businesses and retirees with its zero state income tax policy, removing property taxes could further cement Florida’s standing as a tax-friendly state.
- Reducing Property Tax Dependency on the Government
Proponents contend that rather than depending solely on property taxes, local governments ought to look into other sources of income. Budget cuts, higher business taxes, and higher sales taxes are all being considered by some lawmakers as possible offsets.
- The Difficulty of Locating an Additional $50 Billion
Finding a sustainable revenue replacement strategy is proving to be challenging, despite the optimistic rhetoric. Since there is no state income tax in Florida, legislators must make sure that vital services are maintained without imposing additional taxes elsewhere.
Potential Hazards: What Could Go Wrong?
Tax cuts may seem good, but opponents caution that doing away with property taxes may have serious unforeseen repercussions.
- The Budgets of Local Governments and Public Schools Are in Danger
Nearly 40 percent of local school budgets in Florida are funded by property tax revenue. Public schools may experience significant budget cuts in the absence of a trustworthy replacement, which could result in reduced programs, larger class sizes, and teacher layoffs.
- Greater State Oversight of Local Funding
The state, not local governments, would have more funding if property taxes were replaced by increases in sales taxes. This change may lessen local authority to make decisions, increasing reliance on state funding for counties and cities.
- Consumers May Be Affected by Sales Tax Increases
Increasing Florida’s sales tax, which is currently 6% statewide, is one suggested remedy. If it rises, the tax burden may fall primarily on consumers, particularly middle- and lower-income families. Additionally, tourists would boost the state’s economy, but the cost of daily goods and services might rise sharply.
Who supports it and who opposes it?
Advocates for tax relief are supporters
Sen. Jonathan Martin and Rep. Ryan Chamberlin are among the lawmakers who think that phasing out property taxes will benefit homeowners and investors in the long run. They view it as a means of achieving greater financial independence and economic mobility.
Opponents: Public Services Concern
Economic analysts and senators like Kathleen Passidomo contend that lowering property taxes without a well-defined plan for replacement could seriously impair public services. The Florida Policy Institute cautions that if lawmakers don’t develop a workable backup revenue source, municipalities may experience severe financial instability.
Extension of Property Tax Exemptions as a Possible Compromise
Some lawmakers are thinking about increasing homestead exemptions rather than completely abolishing property taxes, which could lessen property tax burdens without reducing vital government funding.
What Comes Next? The Path to 2026
Although the proposal is still in the early stages of discussion, the following is what will happen next:
Legislators will discuss whether a complete repeal is financially feasible during the 2025 legislative sessions.
Economic Impact Studies: Economists will examine whether property taxes can be successfully replaced by budget cuts or increases in sales taxes.
Voter Referendum (2026): Should the plan proceed, voters in Florida may cast ballots to decide whether or not to do away with property taxes.
