DeSantis moves to eliminate property taxes for 92% of Floridians
- Mark Parker
- 22 hours ago
- 3 min read
Gov. Ron DeSantis has unveiled what he believes is a palatable, phased approach to property tax reform that would immediately raise the homestead exemption on primary residences to $250,000.
His framework, announced in Tampa on Wednesday morning, would then require lawmakers to enact a plan that eliminates property taxes for 92% of Florida residents by raising the exemption to $500,000. DeSantis said he would convene another legislative special session, the third this year, on Monday to create a required ballot amendment that appeals to all voters in November.
The term-limited governor believes his proposal ensures that local governments, which rely on property taxes, can still fund core services. A state-sponsored trust fund would also support rural areas disproportionately affected by the loss of revenue.
“I want to get something done,” DeSantis said. “I want to make sure people can go and vote on something that’s going to be very, very meaningful in their lives.”
DeSantis, who has discussed property tax reform for over a year, began by noting that people were “chomping at the bit” to hear his plan, which is far from a done deal. At least 60% of lawmakers must approve a constitutional amendment, followed by the same percentage of voters.
Republicans hold a supermajority in both Florida chambers, which increases the odds of legislative approval. Cost-burdened voters are also likely to find the proposal appealing.
“The good thing about property tax relief is it’s good for everybody,” DeSantis said. “Red, blue, none of the above - you’re going to get property tax relief. I don’t think it’s a partisan issue.”
The plan
DeSantis said homestead tax revenue, fueled by increasing home values, has jumped from $32 billion to $60 billion over the past seven years. While he would prefer to eliminate that funding “cold turkey,” he also noted that lawmakers and voters would likely reject the idea.
Increasing the state’s homestead exemption from $50,000 to $250,000 would eliminate property taxes for 60% of homeowners, DeSantis said. He believes a phased approach will help ensure support, and a “smooth transition to where people aren’t going to say, ‘Oh, you’re not going to be able to have money for services.’
A subsequent increase to $500,000, after securing initial voter approval, would eliminate property taxes for 92% of homeowners. The state would then mandate that local governments can only use revenue from non-homesteaded properties - rentals, vacation homes, secondary residences, businesses, and vacant land - to fund schools and public safety agencies.
“That’s still an awful lot,” DeSantis said. “That’ll be more than $50 billion. That’s still a lot of money, way more than they (local governments) got just seven years ago.”
The impact
However, costs have also soared for Florida counties and cities. St. Petersburg officials, already decreasing departmental funding and increasing municipal rates to mitigate a tightening budget, estimate an annual revenue loss of $83 million if all homesteaded properties become exempt from taxes.
“This plan will bankrupt many small cities and towns across Florida,” City Councilmember Brandi Gabbard said in a social media post on Wednesday. “It will dramatically hamper services in counties and cities with more resources. What it will not do is drive down costs. It is a bait and switch, and this governor will not be around to deal with it as local communities suffer.”
Tampa Mayor Jane Castor has warned that property taxes account for 70% of the city’s general fund, and that still doesn’t cover public safety costs. Pasco County would lose up to $480 million in annual revenue under DeSantis’ proposal.
The plan, which also decreases local assessments on small businesses from 10% to 5%, includes two measures to garner voter support. DeSantis said the state is launching a website that highlights how much Floridians would save on their tax bills.
In addition, new residents must pay up to five years of taxes under the current system before qualifying for relief. “I don’t want Floridians to go and see this on the ballot and say, ‘Oh man, I really would like property tax relief, but I don’t want the entire state of Illinois to empty out into Florida or wherever because of this,’” DeSantis said.
“When these things appear on the ballot, every word matters in terms of what people think they’re voting on,” he added. “So, you want to make sure that it’s clear; you want to make sure that it’s something that pops, meaningfully.”
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