Governor Ron DeSantis has revealed his proposal to reform property taxes in Florida, but as his plan starts circulating, many in the state are warning about the potentially dangerous consequences it could have if implemented.
Under his proposal, the state’s homestead exemption would increase from $50,000 to $250,000, virtually eliminating property taxes for about 60 percent of Florida residents who now qualify for the exemption, DeSantis said.
The Republican governor wants to increase the exemption level further over the next few years, resulting in the abolition of property taxes for more than 90 percent of Florida homeowners qualifying for the exemption.
Municipalities have been raising the alarm for months over the way drastic cuts to property taxes would leave them with no means to support public services for residents.
And experts agree, saying that the money to fund these services would simply have to come from some other form of taxation, like higher sales taxes or new fees—or residents would have to expect cuts.
What Is DeSantis’ Plan?
DeSantis has been calling for the complete elimination of property taxes in Florida since early last year but has come out with a milder proposal that he said would be more likely to pass through the Legislature in Tallahassee.
The governor wants to raise Florida’s threshold for taxing primary residences, also known as homestead properties, from $50,000 to $150,000 in 2027, then to $250,000 in 2028. The increase would effectively wipe out property taxes on primary homes assessed at these values or less.
After that, DeSantis has proposed that lawmakers create a schedule to raise the exemption to $500,000 and above, eventually eliminating property taxes on primary homes at any value.
AP Photo/Chris O’Meara, File/Douglas R. Clifford/Tampa Bay Times via AP/Canva
Anyone establishing Florida residency after January 1, 2027, would need to remain a resident for up to five years before being able to benefit from the increased homestead exemption and property tax cut, according to the proposal.
While DeSantis said that the first increase would eliminate property taxes for 60 percent of Florida homeowners, fact-checking by WLRN radio and PolitiFact revealed that only about 28 percent of Florida’s homestead properties have a just value (or market value) of $250,000 or below.
Roughly 76 percent of homestead properties are valued at $500,000 or below, fewer than estimated by DeSantis.
What Is the Backlash Against It?
DeSantis’ plan has sparked backlash among some local leaders who warn of impending cuts to their budgets should the reform be passed, despite gaining support from many of the GOP faithful.
Gainesville Commissioner Bryan Eastman wrote on X that the governor’s property tax proposal would cut roughly 35 percent of the tax base that funds the Alachua County Sheriff’s Office, based on the local property appraiser’s estimate.
“That’s a 35 percent hit to the tax base that pays for local law enforcement. That’s defunding the police,” he said.
Miami-Dade Mayor Daniella Levine-Cava wrote on X that she supports “meaningful tax relief for Florida families” but that “any proposal to eliminate or significantly reduce property taxes deserves a full and honest conversation about the impact on services residents rely on every day.”
On Monday, she sent a letter to Florida legislative leaders urging them to find a compromise that allows for “a balanced approach that protects both affordability and our communities.”
A property tax cut like the one proposed by DeSantis, she wrote in the letter, “would be felt in the closure of libraries; reductions in bus routes and service hours, affecting thousands of commuters and economic productivity; cuts to road maintenance causing potholes, cracked pavement, closed roads, worse traffic and impacting; the public’s safety; park closures and elimination of recreational programming; correction staffing reductions leading to overcrowded inmate housing; reduced disaster response coordination; downsizing of animal services; and reduction in personnel and contracted services at the Medical Examiner’s Office.”
Boca Raton Mayor Andy Thomson last month compared property tax cuts to “a war on local governments.”
The city of Parkland estimated that it stands to lose $27 million in revenue as a result of the homestead exclusion proposed by DeSantis, with only $5.4 million potentially remaining in its budget to operate and maintain parks, streets and sidewalks, organize city events and capital projects, and more.
The Florida Policy Institute—an independent, nonprofit and nonpartisan organization—has created a map showing how much money each county and school district stands to lose under DeSantis’ proposal.
Currently, the following counties are the top five where homestead property-tax revenue makes up the greatest share of total county government revenue:
- Flagler 24 percent
- Martin 22 percent
- Nassau 18 percent
- St. Johns 18 percent
- St. Lucie 18 percent
Statewide, the increase of the homestead exemption to $250,000 would cost school districts an average of $5 billion annually while causing counties to lose an average of $4.8 billion annually. The losses would increase the more the exemption is expanded.
An analysis of the governor’s proposal by the Florida House of Representatives concluded that the bill would result in a loss in revenue for local governments of more than $8 billion in fiscal year 2027-28, including at least $3.4 billion in school taxes and $4.6 billion in non-school taxes.
The losses could go up to more than $14 billion in fiscal year 2028-29, including at least $5.6 billion in school taxes and $8.4 billion in non-school taxes.
What Happens Next
Lawmakers are discussing what property tax reforms to put in front of voters in November, as a special legislative session on property taxes started on Monday.
The kind of property tax reforms proposed by DeSantis would require an amendment to the Florida Constitution, which would have to be backed by 60 percent of voters in November.
DeSantis has talked about using $5.5 million of taxpayer dollars to enable property appraisers to send mailers on his proposed cuts to property owners across Florida, informing them of how much money they would save.
Jeff Brandes, a former Republican lawmaker and director of the Florida Policy Project, hit back at the governor for what he perceived as an attempt to pressure voters and lawmakers to back his proposal.
“The Legislature should not be pressured into rubber-stamping a once-in-a-generation overhaul of Florida’s tax system on an artificial deadline with so many unanswered questions,” Brandes said in a statement reported by the Palm Beach Post.
