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Florida lawmakers debate property tax
A state House panel on Monday began a two-day review of property taxes as it examines potential changes that could have a significant impact on local governments.
Florida lawmakers are weighing proposals to cut property taxes as Gov. Ron DeSantis pushes to place the issue before voters next year.
What we know:
A Florida House committee on Monday opened a two-day review of property taxes as part of a broader debate over Gov. Ron DeSantis’ push to reduce or eliminate taxes on homesteaded properties.
Lawmakers heard presentations on school funding and the strain facing rural counties with limited tax bases.
What we don't know:
The committee is still weeks away from drafting formal proposals. It remains unclear how the Legislature would replace lost revenue for local governments if homestead property taxes are reduced or eliminated. The impact on essential services such as schools, health care, and municipal operations is still being studied.
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The backstory:
When House Speaker Daniel Perez created the panel this spring, he laid out several options for lawmakers to consider, including raising the homestead exemption, loosening rules on annual assessments, and even prohibiting foreclosures on homesteaded properties over unpaid taxes. Florida currently caps annual increases in assessed home values at 3% or the rate of inflation, whichever is lower.
What they're saying:
While DeSantis has framed the issue as relief for homeowners, local officials warn that towns and counties could struggle to maintain services without steady property tax revenue.
"We're educating, obviously, right now committee members, but hopefully the public is listening to what that would mean in terms of reduction of any kind of revenue in their communities," said Rep. Vicki Lopez, a Miami Republican and committee co-chair.
Lopez added that smaller municipalities might have to consider merging into their counties.
"They will have to ask themselves … does it make sense? Because, again, this has to make sense for the taxpayer, right, not for the actual government subdivision."
Rep. Toby Overdorf, R-Palm City, suggested consolidation of services could be another path.
"Are they going to be able to possibly look at health care across their municipality lines? Are they going to be able instead to look at different ways of doing it that many of us in business have had to do?" he said.
DeSantis, speaking earlier this year, argued the state could cover the cost in rural counties. "I'm just telling you that is budget dust," he said.
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The Source: This story was written based on information shared by the House Select Committee on Property Taxes, Gov. Ron DeSantis, and reporting by the News Service of Florida.