Florida Gov. Ron DeSantis – Courtesy: Shutterstock – Image by Hunter Crenian
The following regulatory actions for the state’s endeavor to do away with property taxes on primary houses in Florida were outlined by Governor Ron DeSantis.
“People are being pinched across the economy in a lot of things,” DeSantis stated on Friday’s episode of “Varney & Co.” on FOX Business. “We’re doing fine at the state [level], but the local property taxes are hurting people.”
“The truth is that people are paying more and more because these local governments have overspent. And eventually, it’s like, “When is enough, enough?”
In order to become Florida the first state in the US to do away with property taxes on primary residences and have no state income tax, DeSantis reaffirmed on Friday that the objective is to “completely” eliminate property taxes for homesteaded citizens.
A $500,000 homestead exemption (up to $1 million for seniors), a cap on assessment increases, and the possibility of doing away with property taxes on homesteads entirely are among the proposals that lawmakers are reportedly pushing through the Florida House.
The Florida Policy Institute (FPI) estimates that property taxes bring in about $55 billion a year, accounting for up to 60 percent of school-district spending in several places, 17 percent of municipal income, and 18 percent of county revenues. According to some projections, the state sales tax might rise from 6 percent to 12 percent if property taxes are eliminated, forcing a significant increase in other revenue streams.
A study on property taxes that examines how local governments use tax income and what happens if it is lowered was vetoed by DeSantis’ office after it introduced the idea in March. DeSantis explained that in order to pass the measure on the 2026 ballot, 60% of voters must approve it, and the tax cuts could need to be implemented gradually.
Because they own commercial property and second homes, non-Florida residents provide the majority of our property tax revenue. Consequently, it amounts to roughly 30 percent of the [total property tax] income. We’re going to do some stuff, so you might need to phase it in. All of that is sensitive to us. DeSantis stated on Friday, “I want something that can pass and work.
Additionally, the governor asserted that the state may now greatly expand its rainy-day reserve because local property tax revenue has increased dramatically since the predicted $32 billion figure in 2019.
Can you imagine a scenario where budgets are increased by 50 or 60 percent every five or six years? We did have a boom with COVID, and everyone was flocking to Florida, which contributed to the increase in property values, DeSantis noted.
However, how come you spend $350,000 for a house and four years later find out it’s worth a million dollars and you have to pay more in property taxes? It’s incorrect.
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Melissa’s career in writing started more than 20 years ago. Today, she lives in South Florida with her husband and two boys.
