Florida lawmakers on Tuesday approved a property tax overhaul proposal backed by Gov. Ron DeSantis, sending a constitutional amendment to the November ballot which aims to dramatically expand homestead exemptions.

“If passed, it would raise the state’s $50,000 homestead exemption to $250,000 over two years,” Axios stated.

“On a 30-9 vote the @FLSenate has placed a property tax phase out plan on the November ballot,” ActionNewsJax reporter Jake Stofan said.

Stofan listed these highlights:

  • 1st year- $150K homestead exemption
  • 2nd year- $250K exemption
  • Beyond- Legislature will set schedule to full elimination.

“Legislature pulled school property tax out of the equation and removed the state trust fund @GovRonDeSantis has pitched to backfill local budgets,” Stofan noted.

“House approved the measure earlier on a 75-26 vote,” he added.

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Axios has more:

Lawmakers left property taxes levied by school districts intact and imposed a five-year waiting period before people who relocate to Florida after Dec. 31 can receive the tax benefit.

They also scrapped a state fund proposed by the governor that would have helped local governments pay for “core” services.

The amendment could cost local governments upward of $4 billion in fiscal year 2027-28 and more than $8 billion in 2028-29.

Local governments would also face restrictions on how they can spend the remaining property tax revenue, limiting it to areas such as public safety, education, infrastructure and debt obligations.

Florida voters will have the final say in November, with the constitutional amendment needing at least 60 percent support to pass.

CBS News shared further:

Supporters argued the measure gives homeowners relief from rising property tax bills and allows voters to decide whether local governments should receive less revenue.

Opponents warned the proposal could force cities and counties to cut services or shift costs to businesses, renters and owners of non-homesteaded properties. Some lawmakers also expressed concerns about the speed of the process and the potential long-term impact on local governments.

Rep. Allison Tant, D-Tallahassee, said the change will result in cities and counties cutting back or consolidating public safety and other services.

“They’re worried about loss of autonomy, independence, and losing their identity,” Tant said. “They are worried about becoming wards of the state and essentially be treated like welfare recipients.”

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For the second day, Democrats unsuccessfully tried to amend the bill to allow water management districts use property tax revenue, to use state dollars to cover lost revenue for senior programs, law enforcement, corrections and veterans services, and to prohibit the use of public money to advertise the ballot initiative.

The measure would also lower the cap on annual assessment increases for non-homestead properties, which include vacation and investment homes and commercial properties, from 10 percent to 5 percent.

Starting after Jan. 1, 2027, first-time homeowners would have to display five years of residency to qualify for the new super exemption. Until they qualify, they would receive the current exemption that lifts local government and school district taxes on the first $25,000 of the appraised values of their primary properties and from non-school taxes on the value between $50,000 and $75,000.

 

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