As the Florida Legislature began its third special session of the year on Monday, Gov. Ron DeSantis spoke at a news conference in Pasco County about what he wants to see from lawmakers before the session ends.
DeSantis has charged lawmakers with passing an amendment that can go to voters on the November ballot.
“The reality is the property tax has become a big, big burden for millions of people in the state,” DeSantis said. “Fortunately, because we’ve had success, we have an ability to do something about it, and so that’s what we’re working with the Legislature on as they’re in the special session.”
DeSantis wants an amendment that would increase the homestead property tax exemption to $250,000 initially and then grow the exemption from there until eventually, homestead property taxes would be eliminated.
“I never promised that we would simply have no property tax anywhere at any time, because if I was starting from scratch, that’s what I would propose,” DeSantis said. “But since we’re starting with what we have, I’ve always said we’re going to focus on homesteaded properties.
DeSantis said the schedule of how quickly the exemption would grow would have to be worked out if taxpayers approve the amendment.
He argued that the initial $250,000 limit would apply to about 60% of Florida homeowners, and once it gets to $500,000, that would include about 92% of homeowners in the state.
“I think this bottom up approach is a better approach,” DeSantis said. “This is something that can actually get done. I think it could be meaningful.”
Critics have raised concerns that a drop in property tax revenue will affect local services, which rely on those revenues for funding.
But DeSantis countered that claim on Monday, saying homestead taxes make up about 30% of property tax revenue that local governments take in.
“That property tax is still just a portion of their overall taxes that are going into the county budget. So you’re talking about homestead, which is a fraction of all of all property tax revenue, but that property tax revenue is simply a piece of an overall thing,” DeSantis said.
According to DeSantis, property tax revenue collected by local governments has nearly doubled in the past seven years (from $32 billion to $60 billion) and is expected to reach $83 billion by 2032.
DeSantis claims his proposal would:
- Exempt homestead properties from taxation: Begins by exempting the first $250,000 of a homestead’s value from taxation and requiring, through law, a schedule for full elimination.
- Ensure funding for core services: Requires local governments to use remaining property taxes solely for core public needs, including public safety, education, infrastructure, and natural resources.
- Protect small businesses: Limits future property tax assessments on businesses and creates a more stable tax environment for local businesses.
- Ensure fairness for Florida residents: Requires any person who establishes Florida residency after Jan. 1, 2027, to maintain Florida residency for up to five years prior to receiving the increased homestead exemption.
- Create a state trust fund to assist with core local services: Establishes a trust fund to provide grants to local governments to assist with the continuation of core local services.
“Obviously, you know, you got to run services, but all the time the taxpayer is having to pay more and more for basically the same level of services that they would have gotten 10 years ago when their property tax bill was a lot less,” DeSantis said.
No matter what the governor wants, it will be up to the Legislature to decide what the final amendment or amendments look like. Then at least 60% of voters would need to approve any amendments for them to take effect.