DeSantis pushes plan to sharply cut Florida property taxes

ORLANDO, Fla. - Florida homeowners could soon see major reductions in their property tax bills under a proposal unveiled Wednesday by Gov. Ron DeSantis. 

The plan, which would require approval from lawmakers and voters, has already sparked debate over how local governments would replace billions of dollars in lost revenue.

What we know:

DeSantis is calling lawmakers back to Tallahassee for a special session Monday to consider a constitutional amendment that would sharply expand Florida’s homestead property tax exemption.

Under the proposal, the homestead exemption would immediately increase from $50,000 to $250,000. DeSantis said the measure would eventually expand further, potentially eliminating property taxes entirely for many homesteaded properties.

If approved by the Legislature, the proposal would appear on the November ballot, where at least 60% of voters would need to support it to become law.

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The governor estimated the initial increase would eliminate property taxes for roughly 60% of homesteaded homeowners statewide. He said that if the exemption eventually reaches $500,000, about 92% of homesteaded properties would become tax-free.

The proposal would also restrict remaining property tax revenues to funding schools, law enforcement, fire services and other core government functions. A trust fund would be created to assist rural counties with smaller tax bases.

What we don't know:

The governor’s formal proclamation for the special session and the full legislative language were not immediately released Wednesday.

It also remains unclear exactly how local governments would replace the billions of dollars in revenue expected to be lost if property taxes are phased out more broadly.

Questions also remain about how lawmakers would structure future exemption increases and whether enough legislative support exists to place the amendment on the ballot.

The backstory:

Property taxes have become a growing political issue in Florida as home values have surged across the state in recent years.

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Current law allows homeowners to qualify for homestead exemptions on portions of their assessed property value, while the state’s "Save Our Homes" law caps annual increases in taxable values for homesteaded properties at 3%.

Tensions over tax policy have also exposed divisions among Republican leaders in Tallahassee. House Speaker Daniel Perez initially pushed for sales tax reductions, while DeSantis increasingly focused on property tax relief.

Earlier this year, the Florida House approved a proposal to eliminate most non-school homestead property taxes, but the measure stalled in the Senate because of concerns from smaller counties that rely heavily on property tax revenue.

Big picture view:

Supporters say the proposal could provide significant financial relief for homeowners struggling with rising housing costs and inflation.

Critics, however, warn that property taxes fund essential local services, including police departments, fire rescue operations, libraries, parks and infrastructure projects.

Local government leaders and Democrats argue that eliminating or drastically reducing property taxes could shift costs elsewhere through higher fees, reduced services or increased taxes on businesses and renters.

The debate also arrives as Florida lawmakers are already engaged in multiple special sessions this year, including efforts to finalize the state budget.

What they're saying:

"I want to get something done. I want to make sure people can go and vote for something, and then see something that's going to be very, very meaningful in their lives," DeSantis said during an appearance in Tampa.

Senate President Ben Albritton said the proposal "will provide meaningful relief for Florida families, while protecting businesses from extreme tax increases and safeguarding local funding for public safety, education and our clean water infrastructure."

House Speaker Daniel Perez appeared more cautious, saying, "We look forward to reviewing it once we have received the language."

Florida Association of Counties deputy executive director Cragin Mosteller warned that "eliminating property taxes does not eliminate the cost of infrastructure, emergency response, and other essential local services."

House Minority Leader Fentrice Driskell criticized the proposal as "a boneheaded move," arguing that cuts to property tax revenue could hurt public services and local governments.

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