Proposal backed to phase out property taxes

A House proposal that would ask voters to phase out non-school homestead property taxes moved forward Thursday as lawmakers and Gov. Ron DeSantis continue trying to reach agreement on a November ballot measure.

The Republican-controlled House State Affairs Committee voted along party lines to advance a proposed constitutional amendment, HJR 203, that would annually increase the homestead exemption by $100,000 over the next decade, leading to a full exemption for non-school property taxes in 2037.

The proposal, which would require approval from 60% of voters, also seeks to prevent local funding cuts for law enforcement, firefighters and other first responders.

Cities and counties have raised concerns about potential reductions in funding for services. But Rep. Monique Miller, R-Palm Bay, the sponsor of the proposal, said local governments need to consider sharing services and “live within their means.”

“By reducing taxes over years, we are giving local governments time to adjust to new revenue levels and empowering them to find responsible solutions,” Miller said.

Local government officials warned the proposal could lead to billions of dollars a year in lost property tax revenue.

“This is truly not tax relief,” Charles Chapman, legislative consultant for the Florida League of Cities, told the committee. “It will end up becoming a tax shift, where costs do not disappear. The burden will shift to businesses, the renters, because fees, assessments and higher non-homestead millage rates could replace the homestead tax break.”

Democrats also raised concerns about potential service cuts and cost shifts.

“Governance requires us to think through consequences, not just concepts,” said Rep. RaShon Young, D-Orlando.

DeSantis has made placing a proposed constitutional amendment on the ballot to cut property taxes a priority. The House in October released eight proposals, but Speaker Daniel Perez, R-Miami, said this week he expects a single proposal to move forward.

“I fully expect us to have something on the ballot for our constituents to eventually vote on,” Perez told reporters. “I do expect it to be one proposal for them to vote on.”

Perez said it remains “somewhat still up in the air” what the final proposal will be.

“We don’t have a position from our friends across the hall in the Senate or the executive branch on what details they are proposing for our constituents to eventually vote on,” he said. “We’ve taken the initiative.”

A separate proposal, HJR 209, which is ready to go before the full House, would increase the homestead exemption for residents who carry property insurance.

In December, the State Affairs Committee also backed proposals to eliminate non-school homestead property taxes (HJR 201), eliminate non-school homestead taxes for homeowners 65 and older (HJR 205) and allow homeowners to transfer the full value of accumulated Save Our Homes benefits to new homes (HJR 211). Miller’s proposal and those measures would still need approval from the Ways & Means Committee before reaching the House floor.

Save Our Homes places a 3% cap on annual increases in the taxable value of homesteaded property.

Currently, homeowners can qualify for homestead exemptions from local government and school district taxes on the first $25,000 of a property’s assessed value and from local government taxes on values between $50,000 and $75,000.

DeSantis on Wednesday suggested a special legislative session could be needed to resolve the property tax issue.

“I don’t know that we’re going to have something passed in the regular session,” DeSantis said during a Florida Chamber of Commerce fly-in event in Tallahassee. “You have until pretty much, I think, Aug. 1, to be able to get that done. I think it’ll get done before then, but we’re working with folks in both chambers.”

In his proposed fiscal year 2026-27 budget, DeSantis earmarked $300 million to support rural, fiscally constrained counties that would be affected by efforts to reduce or eliminate property taxes.

Jeff Scala, deputy director of the Florida Association of Counties, told the committee that under Miller’s proposal, 40 counties would still face a $2.9 billion impact in just the first year if voters approve the measure.

“We need to figure out who we want to be as a state,” Scala said. “Do we want to be a state that attracts residents because of our world-class infrastructure, because of the amenities we provide in our communities? The math doesn’t work. This is a fiscal crisis by design.”