The Florida House of Representatives recently voted to advance a proposed constitutional amendment that could eliminate non-school property taxes for homesteaded properties starting in 2027. This move, which passed with an 80-30 vote, aims to address the state's affordability crisis. However, the proposal faces a challenging path to reach the November ballot, as it still requires significant Senate approval.
Key Takeaways
- Florida House passed a resolution to end non-school property taxes for homesteaded properties.
- The proposal requires a three-fifths majority in both the House and Senate to reach the ballot.
- Estimated fiscal impact includes a negative $4.8 billion cash impact and $14.7 billion recurring impact on local non-school tax revenues for FY 2027-28.
- Governor DeSantis and the Senate have yet to propose their own property tax plans.
- Democrats argue the measure would defund essential local services like police and fire departments.
House Pushes for Tax Elimination
On Thursday, the Florida House of Representatives approved a joint resolution to put a constitutional amendment before voters. This amendment, if passed, would completely end non-school property taxes for homesteaded properties. The change would take effect on January 1, 2027.
All Republicans in the House supported the measure, while all Democrats opposed it. The final vote was 80-30. This strong partisan divide highlights the differing views on how to tackle Florida's rising cost of living.
Key Numbers
- 80-30: Vote count in the Florida House (80 for, 30 against).
- $14.7 Billion: Estimated negative recurring impact on local non-school property tax revenues in Fiscal Year 2027-28 if the amendment passes.
- 60%: Required voter approval for a constitutional amendment to pass.
The Path to the Ballot
For this proposal to reach the November ballot, it must secure a three-fifths majority approval in both the House and the Senate. Governor approval is not needed for joint resolutions. Currently, the Florida Senate has not introduced any similar property tax legislation during this session.
Senator Ed Hooper, who chairs the Senate Appropriations Committee, indicated that the Senate will introduce its own property tax measure. He noted that it would likely be less extensive than the House's proposal. He also suggested that it might appear during this regular session or possibly a special session.
Background on Property Taxes
Property taxes are a primary funding source for local governments. These funds support essential services such as law enforcement, fire departments, parks, roads, and other infrastructure. Eliminating these taxes would require significant changes to how local services are financed.
Financial Impact and Debate
The proposal, introduced by Representative Monique Miller of Palm Bay, underwent significant changes from her original plan. Her initial idea involved gradually increasing the homestead exemption over ten years.
Miller stated, "After looking at the numbers, it became incredibly clear that we have the ability to do this without putting undue burdens on local government, and I believe that it can be done."
"After looking at the numbers, it became incredibly clear that we have the ability to do this without putting undue burdens on local government, and I believe that it can be done," stated Representative Monique Miller.
However, the state's Revenue Estimating Conference projected Miller's initial proposal would cost local governments $13.3 billion annually. The House staff analysis for the approved amendment estimates a negative cash impact of $4.8 billion and a negative recurring impact of $14.7 billion on local non-school property tax revenues in Fiscal Year 2027-28.
Governor's Stance and Senate Delay
Governor Ron DeSantis has been a vocal proponent of eliminating property taxes in Florida. Despite this, he has not publicly presented his own detailed plan. He recently commented on social media, stating, "Regarding a property tax proposal for the 2026 ballot: we’ve been working with members of the Senate who have been great partners. Given that it can’t be voted on by the people before November, it’s better to do it right than do it quick!"
This statement suggests a potential preference for a special legislative session to address property tax reform. House Speaker Daniel Perez hinted that the current session, scheduled to end on March 13, might extend beyond that date depending on legislative progress.
Arguments For and Against
Republicans argue that eliminating property taxes is a necessary step to address Florida's affordability crisis. They believe it will ease the financial burden on homeowners and small businesses.
Representative Ryan Chamberlin, a Republican from Belleview, emphasized the issue. "I believe that even our colleagues on the back rows would agree that rent has gotten too high, homeowners and small businesses are in an affordability crisis, and the price of homeownership is nearly out of reach for an entire generation," Chamberlin said. He added, "The answer is simple: Cut property taxes, then eliminate them and let the tourists and the new movers pay for it."
Concerns Over Local Services
Democrats have strongly criticized the proposal, arguing it would severely impact local government funding. They contend that essential services like police, fire, and waste management would face significant cuts.
Representative Rita Harris of Orlando called the proposal a "ruse" to avoid addressing real issues. She warned, "We are defunding the police. We are defunding the fire. We are defunding the garbage. We are defunding the schools. We are defunding the waste management. We are defunding people cutting your trees during storm session. We are defunding the state of Florida."
"We are defunding the police. We are defunding the fire. We are defunding the garbage," warned Representative Rita Harris, highlighting the potential impact on essential services.
Broward County Democratic Representative Robin Bartleman echoed these concerns. She stated that over 100 cities would lack sufficient funds to maintain local law enforcement levels after the proposed changes. This prompted a strong rebuttal from Jacksonville Republican Representative Dean Black, who accused Democrats of engaging in "shrill debate" and argued the resolution protects police funding.
Former Republican state Senator Jeff Brandes criticized Governor DeSantis's inaction on the issue, suggesting the governor's strategy involves letting the Legislature take the lead and the criticism. The Florida Policy Institute also points out that the state’s current tax code is already upside down, with the wealthiest Floridians paying the least in state and local taxes as a share of household income. They advocate for targeted tax relief for low to moderate-income households and exploring new revenue sources.
- Support: Republicans argue for tax cuts to combat affordability crisis for homeowners and small businesses.
- Opposition: Democrats warn of "defunding" police, fire, and other crucial local services.
While other property tax resolutions have cleared committee assignments, their passage remains uncertain. House Speaker Perez indicated that further discussions with the Senate would determine the fate of these proposals. The future of property tax reform in Florida remains a key legislative battleground.
