Governor Ron DeSantis has sparked debate on whether the state of Florida should eliminate property taxes, a move that would have a significant impact on homeowners and local authorities. His recent comments on social media have reignited the controversy surrounding the fairness and feasibility of property taxes in Florida.
DeSantis' Stance on Property Taxes
The conversation started when DeSantis responded to a tweet on X (formerly Twitter) criticizing the current system of taxing new construction homes based on assumed value. The tweet stated:
"Property Taxes shouldn't be assessed based on assumed value for new construction homes. I built my house affordably. I should have affordable property taxes to match."
DeSantis responded succinctly by typing: "I agree!" The brief endorsement has set off widespread speculation about whether he will push for property tax reform or elimination. DeSantis also emphasized his position by calling property taxes "oppressive" and "ineffective," which indicates that he is a strong advocate for their repeal.
How Florida Compares on Property Tax Rates
Florida ranks middle of the pack for property tax rates on real estate, says WalletHub. Although the state is renowned for having no income tax, property taxes remain a significant revenue source for local governments that fund public schools, police departments, and other essentials.
Arguments For and Against Abolishing Property Taxes
Proponents Say:
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Property taxes are a major expense for homeowners, making affordability a growing concern.
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Property taxes can disproportionately affect lower-income individuals, even renters who may bear the cost in the form of higher lease rates.
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Lowering or eliminating property taxes would allow Florida residents to retain more of their earnings and make housing more affordable.
Opponents Say:
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Property taxes are a valuable source of funding for local government services, including police and fire departments.
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Eliminating these taxes could force cities and counties to seek alternative revenue sources, such as increased sales taxes or additional fees.
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Sudden elimination of these taxes could lead to budget shortfalls for essential public services.
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North Dakota voters recently rejected a similar bid to eliminate property taxes, highlighting the difficulty of passing such measures.
Can Florida Eliminate Property Taxes?
Although DeSantis has been sympathetic to the idea, eliminating property taxes statewide would be no easy feat. Unlike state-imposed taxes, property taxes are levied by local governments, meaning a constitutional amendment would be required to do away with them. The amendment may be proposed by:
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A joint resolution of the Florida Legislature
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A citizens' initiative
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A proposal by the Constitution Revision Commission
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A proposal by the Taxation and Budget Reform Commission
To date, no bills or citizen initiatives have been submitted to eliminate property taxes. If anything were to gain traction, 2026 would be the earliest it would appear on the ballot. A similar measure in Tallahassee last year that would have studied replacing property taxes with a sales tax died in committee before its passage.
Alternative Solutions to Property Tax Reform
While some demand total elimination, others, like the Florida Policy Institute, propose modifications to make the tax system more fair. Policy Analyst Esteban Santis argues that instead of eliminating property taxes, the state can:
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Close corporate tax loopholes to generate more revenue.
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Assess higher property tax rates for luxury real estate (i.e., multi-million-dollar properties) while keeping lower rates for middle-class homeowners.
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Reform the tax code to reduce the disproportionate impact on families earning less than $40,000 per year.
The Local Government Perspective
The idea has been greeted with strong opposition by some local leaders. Melbourne Mayor Paul Alfrey addressed opposition to the idea publicly, pointing out that property taxes are among the primary sources of funding for essential services like police and fire departments. He utilized the city's budget numbers to illustrate his argument:
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The City of Melbourne's FY24/25 property tax revenues are $52,624,140.
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Police and fire department personnel costs alone are $52,195,758.
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Added to operating expenses, the total cost is $61,386,216, which exceeds property tax revenue.
Alfrey warned that eliminating property taxes with no clear alternative to make up the lost revenue can lead to cutting services or other tax increases. His concerns reflect those of many local officials who rely on property taxes to maintain essential public services.
What's Next?
DeSantis has already indicated that he will work with the Florida Legislature over the course of the next year and a half to devise potential property tax caps and relief. While total elimination is doubtful, changes to the homestead exemption and other tax relief measures can be anticipated for the next election cycle.
Final Thoughts
The debate over Florida’s property tax system is just beginning, and homeowners should stay informed on potential legislative developments. If you’re concerned about how property tax changes could impact home values or real estate investments, contact The Mastropieri Group,Realtors® at (561) 544-7000 for expert guidance on navigating the South Florida market.
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