News Summary
The Florida House Select Committee on Property Taxes has embarked on a two-day evaluation of property tax issues, influenced by Governor Ron DeSantis’s proposal to amend the constitution to potentially eliminate property taxes on homesteaded properties. The discussions highlight the financial strains on rural counties and the sustainability of essential services amidst proposed tax reductions. Key stakeholders are set to provide insights, with significant reforms anticipated during the upcoming legislative session.
Tallahassee, Florida — The Florida House Select Committee on Property Taxes initiated a comprehensive two-day examination of property tax issues on September 22, 2025, amidst Governor Ron DeSantis’s advocacy for a proposed constitutional amendment aimed at reducing or eliminating property taxes on homesteaded properties in the state. This amendment is scheduled to be presented to voters in the upcoming 2026 ballot.
The committee’s meeting included presentations concerning the interplay between property taxes and school funding, alongside the fiscal challenges experienced by rural counties with limited tax bases. Committee co-chair Rep. Vicki Lopez expressed the potential concerns that reducing property taxes could pose for small towns in terms of sustaining essential services. She indicated that some municipalities might have to consider merging back into the county if their property tax revenues were significantly diminished.
In discussions, examples were brought up such as Holmes County, which consists of five municipalities and has a population of roughly 15,000. The feasibility of these towns maintaining services in light of declining property tax revenues was a focal point. Additionally, co-chairman Rep. Toby Overdorf suggested that local governments may need to explore consolidating services with their neighboring municipalities to adapt to financial constraints.
Key stakeholder organizations, including the Florida Association of Counties and the Florida League of Cities, are set to address the committee on September 23, providing further insights into the impending property tax reforms being considered. The committee anticipates proposing various reforms related to property taxes during the legislative session that commences in January 2026.
Among notable potential changes to be discussed is an increase in the homestead exemption to $500,000 for non-school property taxes, along with the possibility of enabling the legislature to raise the homestead exemption without requiring voter approval. Furthermore, the legislature currently caps annual increases in assessed values for homesteaded properties at either 3% or the percentage change in the Consumer Price Index, whichever is lower.
Statistical data sheds light on the housing market in Florida, noting that approximately 27.9% of homes in the state are valued at $250,000 or less. This trend is significantly pronounced in fiscally constrained counties, where a majority of homes also fall within this price range. Governor DeSantis has estimated that removing property taxes on homesteaded properties in these counties could cost the state around $300 million.
Concerns regarding taxation have also highlighted the particular stress on senior homeowners, who often own their residences outright and thus feel the impact of rising tax bills more acutely than those with mortgages. Property taxes contribute to an annual revenue of about $55 billion in Florida, with homesteaded property owners accounting for approximately $19 billion of that total. School districts rely heavily on these taxes for funding vital services and programs. It was noted that certain counties, such as Union County, depend on state funding for up to 92% of their school budgets.
Analysts have cautioned that significant cuts to property taxes may lead to necessary governmental intervention to support local services, which could range from fire protection to police. The committee deliberated the intricacies of Florida’s property tax system, which includes mandated “truth in millage” requirements and a variety of exemptions available under existing law. Some local officials voiced concerns that a complete elimination of property taxes could result in severe reductions to essential services.
While no specific bills have yet been proposed, the discussions surrounding tax reform aim to culminate in a framework for voter consideration during the November 2026 ballot. The Florida Senate has yet to engage in discussions regarding property taxes as the House panel undertakes its review of the numerous issues presented by this complex topic. Additionally, there are fears that tax reform initiatives could lead to a shifting of the tax burden or an increased reliance on alternative tax methods, such as sales tax, to compensate for potential losses in property tax revenue.
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Additional Resources
- Tallahassee.com: Florida House Begins Work on Property Tax Overhaul
- Florida Phoenix: Hillsborough County Property Tax Proposal
- Fox 13 News: Florida Lawmakers Discuss Property Tax Proposals
- My Suncoast: Local Officials Consider Outcomes of Eliminating State Property Tax
- Wikipedia: Property Tax in the United States
Author: STAFF HERE TALLAHASSEE WRITER
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