Gov. Ron DeSantis is expected to propose a plan to eliminate or greatly reduce property taxes. To fund this, he is expected to call for a substantial increase in the sales tax.
Gov. DeSantis FAU press conference
Gov. DeSantis FAU press conference reveals accreditation reworking
Two weeks after posting a poll on Florida’s property taxes, Palm Beach Post readers are evenly divided on the issue of doing away with the tax — 650 readers said yes and 650 answered no.
The results show the measure is a complicated one with no easy answer for Floridians.
The issue started with Gov. Ron DeSantis’ idea to eliminate or greatly reduce property taxes. To fund this, he is expected to call for a substantial increase in the sales tax. If the plan advances, voters will face the decision in 2026 when a constitutional referendum appears on the ballot.
Property taxes throughout Florida currently bring in about $60 billion each year. According to the Florida Policy Institute, property taxes account for roughly 50-60% of public-school funding, 18% of county budgets, and 17% of city budgets statewide. At issue is how to replace that $60 billion.
The Florida League of Cities, however, argues that eliminating property taxes amounts to “giving control to distant lawmakers and bureaucrats” who are unfamiliar with community needs.
Critics claim the sales tax would need to be raised to 12% to compensate for the loss of property tax revenue, and they emphasize that lower-income residents would be affected much more than higher-income residents. They also point out that the sales tax is regressive, hitting low- and moderate-income residents much harder than high-income ones.
In Palm Beach County, commissioners recently voted 5-2 against a plan to reduce the county tax rate. Concerns were raised that essential services would be impacted. The rate remains at its current level, but with new construction, it will still generate additional revenue.
Property taxes: The case for eliminating them
- Homeowners whose primary residence is in Florida would save thousands of dollars.
- The state would be the only one in the country without an income tax or property tax.
- There would likely be a massive migration and investment flow into the state.
- Tourists and non-residents would bear the brunt of funding government operations.
Property taxes: The case for keeping them
- There might not be enough money to pay for the operations of schools, city and county governments or to maintain existing infrastructure. Existing services would have to be cut.
- Owners of higher-value homes would benefit much more than would the owners of moderately priced homes.
- Local governmental entities would be dependent on state funding and would lose control of their budgets, further eroding home rule.
The property exemption website sums it up this way:
“Supporters envision a tax-free haven that attracts unprecedented growth and prosperity. Critics worry about sacrificing the public investments that made Florida attractive in the first place — quality schools, safe communities, and well-maintained infrastructure.”
Mike Diamond is a journalist at The Palm Beach Post, part of the USA TODAY Florida Network. He covers Palm Beach County government. You can reach him at mdiamond@pbpost.com. Help support local journalism. Subscribe today.