Governor Ron DeSantis unveiled a plan Wednesday in Tampa to gradually eliminate most property taxes.
He called for a special legislative session to begin Monday. Lawmakers would be asked to vote on the plan and then place a referendum on November's ballot.
"Taxing something that you own repeatedly, which is a property tax, is the worst way to do taxation," DeSantis said. "Because you pay all these taxes to acquire that property, and then year after year, you're just having to write a check just for the privilege of being able to maintain ownership of something that is supposedly yours."
It would at first increase the homeowner's exemption for state residents to $250,000. It would then be gradually raised to $500,000 per home, which would mean 92% of the state's homeowners would pay no property taxes.
"For all this time, as we've seen inflation throughout the country, all these different things, it's always the individual, the consumer, the taxpayer that's expected to change things in order to make ends meet," the governor said. "They never expect government to be able to change things so that it can benefit the taxpayers."
"We think that there's too much revenue going from taxpayers to these local governments."Gov. Ron DeSantis
He said this would not affect critical functions, such as police and fire protection.
"We think that there's too much revenue going from taxpayers to these local governments," DeSantis said. "It doesn't mean they don't need anything. Obviously, you've got to run services, but all the time the taxpayers 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."
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But most local governments get at least one-third of the revenue from property taxes, and many worry this could cripple their ability to provide other services.
And it could mean increasing other forms of taxes, wrote Winter Haven City Manager T. Michael Stavres in a recent news release.
"What gets cut instead? Do we reduce road maintenance? Park upkeep? Youth and recreation programs?"Winter Haven City Manager T. Michael Stavres
"That balance has to be offset with additional non-property tax revenue sources," he wrote. "But when tax revenue already falls short of covering those costs, a serious question remains: what gets cut instead? Do we reduce road maintenance? Park upkeep? Youth and recreation programs?
He said eliminating or underfunding other programs could lead to problems in other areas. Stavres said about 40% of the city's general fund budget is paid for by property taxes.
"The challenge before us is not simply how to lower taxes, but how to ensure that any changes do not undermine the very services that make our communities safe, livable, and strong," he wrote.
DeSantis proposed setting up a trust fund that could help small and rural governments to make up any lost revenue. And he said a website will be set up to let homeowners know how much money they would save.
At least 60% of lawmakers in each of the state House and Senate would have to approve putting a proposed constitutional amendment on the November ballot. It would then have to pass the muster of 60% of the state's voters.
Florida Senate President Ben Albritton said he supports the governor's initiative and wants to place the issue before state voters on the November ballot.
"Private property rights are fundamental to the American way of life. Respect for private property and protecting private property from the government has been a cornerstone of our democracy from its inception," he said in a news release.
"At the grocery store, gas station, church on Sundays, and everywhere in between, Floridians I speak with are clear in their support for reducing property taxes. I suspect we are all hearing the same things in our home communities. We trust our constituents and they deserve a chance to change the system and decide for themselves what role property taxes should have in our state."
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According to a report by the Florida Policy Institute, some counties could lose billions of dollars in revenue if property taxes are eliminated.
Three Tampa Bay counties are among 10 that would lose the most: Hillsborough, Pinellas and Pasco.
Cragin Mosteller, director of external affairs for the Florida Association of Counties, said non-homeowners could take the biggest hit.
“Apartment renters, they're likely to see higher taxes or higher rent to pay for those taxes, or you're going to see a shift in sales tax or something like that,” she said during a recent WUSF's "Florida Matters Live & Local" episode.
