Florida Governor Ron DeSantis has announced a plan to phase out property taxes on primary residences by 2026. During his appearance on FOX Business’ “Varney & Co.,” DeSantis emphasized the financial burdens that local property taxes inflict on residents. He stated, “People are being pinched across the economy,” highlighting concerns over local government overspending.
Proposed Property Tax Elimination
The proposed legislation aims to completely abolish property taxes for homeowners with homesteads. If successful, Florida would become the first state to eliminate property taxes on primary residences while maintaining no state income tax.
Legislative Details
Florida lawmakers are advancing a package of proposals in the state legislature that includes:
- A $500,000 homestead exemption, with a potential maximum of $1 million for seniors.
- A cap on property assessment increases.
- The option to eliminate property taxes on homesteads entirely.
According to the Florida Policy Institute, property taxes contribute about $55 billion annually. These taxes account for 18% of county revenues, 17% for municipal revenues, and up to 60% of school funding in various areas.
Potential Economic Consequences
Eliminating property taxes could lead to a substantial increase in other forms of revenue. Some estimates suggest that it might increase the state sales tax from 6% to as much as 12%. DeSantis noted that the tax relief measures might need to be introduced gradually and require approval from 60% of voters in the 2026 ballot.
Local Impact and Trends
DeSantis commented on the rising property tax revenues, which have significantly increased since 2019. He pointed out that many residents are facing steep property tax hikes as home values soar. “Can you have a situation where every five or six years you’re increasing budgets 50-60%?” DeSantis questioned.
He also mentioned that much of the property tax revenue comes from non-residents who own second homes or commercial properties in Florida, contributing around 30% of total property tax revenue.
This proposal marks a significant move in DeSantis’ policy agenda, reflecting his commitment to easing the financial burden on Florida residents by reforming property tax structures.
