DeSantis Proposes Sweeping Changes to Florida’s Property Tax System

TALLAHASSEE, Florida — Florida Governor Ron DeSantis announced a bold initiative to reform the state’s property tax system during a recent appearance on FOX Business. The proposal aims to eliminate property taxes on primary residences in Florida, positioning the state to become the first in the nation to do so while also having no state income tax.

“People are being pinched across the economy in a lot of things,” DeSantis said on Friday. “We’re doing fine at the state level, but the local property taxes are hurting people.” He emphasized the need for local governments to manage spending better and questioned how long residents should continue to bear the burden of rising property taxes.

The governor’s plan, which is garnering support in the Florida House, includes proposals for a $500,000 homestead exemption, a cap on annual assessment increases, and the complete elimination of property taxes for homesteaded properties.

Property taxes currently generate around $55 billion annually, supporting vital services such as education, infrastructure, and public safety. Some economists, like Abby Hall from the University of Tampa, warn that removing this reliable revenue source could lead to difficulties for local governments, particularly during economic downturns. She noted, “There are potential benefits to this policy, but also very real potential costs.”

Miami Mayor Francis Suarez echoed DeSantis’s thoughts, pointing out how high taxes in states like New York are driving affluent residents to Florida. “The majority of our revenue for property tax is [from] non-Florida residents,” he said, highlighting that this issue could become a significant factor in the upcoming election cycles.

DeSantis also remarked on the increasing financial pressure property taxes place on homeowners and suggested that while the proposals may need to be phased in, they are designed to garner broad support from the public. “I want something that can work, and I want something that can pass,” he assured.

However, not all lawmakers are on board. Democratic leaders argue that the elimination of property taxes could shift the financial burden to renters and first-time homebuyers. They caution against undermining the resources that local governments rely on.

Any proposal to amend the property tax system will require a constitutional amendment and approval from at least 60% of voters, potentially placing the issue on the ballot in 2026.