By Jim Turner, The News Service of Florida
TALLAHASSEE — A state House panel Monday began a two-day review of property taxes as it looks at potential changes that could have a major impact on local governments.
Gov. Ron DeSantis is pushing lawmakers to put a proposed constitutional amendment on the 2026 ballot to reduce or eliminate taxes on homesteaded properties. As it gears up for the 2026 legislative session, the House Select Committee on Property Taxes on Monday received presentations about issues such as school funding and rural “fiscally constrained” counties that have limited tax bases.
Though the committee is weeks from crafting proposals, Rep. Vicki Lopez, a Miami Republican who co-chairs the panel, said cutting property taxes could lead people to face questions such as whether small towns could continue to maintain existing services.
“We’re educating, obviously, right now committee members, but hopefully the public is listening to what that would mean in terms of reduction of any kind of revenue in their communities,” Lopez said.
Lopez said one option could be for some municipalities to “fold back into the county” if property-tax revenue is reduced.
“Look at Holmes County. It’s a fiscally constrained county. Has approximately 15,000 people living in the county. It has five municipalities,” Lopez said. “They will have to ask themselves … does it make sense? Because, again, this has to make sense for the taxpayer, right, not for the actual government subdivision.”
Committee Co-Chairman Toby Overdorf, R-Palm City, said small local governments could also consider consolidating services with other small governments.
“Are they going to be able to possibly look at health care across their municipality lines?” Overdorf said. “Are they going to be able instead to look at different ways of doing it that many of us in business have had to do?”
The Florida Association of Counties and Florida League of Cities, along with the governor’s Florida Department of Government Efficiency, are set to make presentations to the committee on Tuesday.
The committee will hold additional meetings and is expected to offer proposals before the January start of the 2026 session.
When he established the committee this spring, House Speaker Daniel Perez, R-Miami, outlined a series of potential changes to consider, including boosting the homestead exemption to $500,000 for non-school property taxes; allowing the Legislature to raise the homestead exemption without needing voter approval; changing a cap on annual increases in assessed values; and prohibiting local governments from foreclosing on homesteaded property for unpaid taxes.
Homeowners can qualify for homestead exemptions from local government and school district taxes on the first $25,000 of the assessed values of their primary properties and from local government taxes on the value between $50,000 and $75,000.
Increases in the assessed taxable values of homesteaded property are capped at 3 percent a year or the percent change in the Consumer Price Index, whichever is lower.
Statewide, 27.9 percent of homes are valued at $250,000 or less, according to information presented Monday. In fiscally constrained counties, which are generally inland, the majority of homes are priced at $250,000 or less.
How to deal with the fiscally constrained counties likely will be a key issue in the coming months. During an appearance in June, DeSantis estimated that eliminating taxes from homesteaded properties in those counties would cost roughly $300 million, which he said the state could cover.
“I’m just telling you that is budget dust,” DeSantis said.
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Tom,
How about increased taxes at hotels and AirBnBs, get it from our tourists and visitors like the mattress taxes? An increased penny tax at the pump. While I’m not really a fan of it in general, if it replaces me paying rent to the government for dirt I already own, I’m okay with it. Put a charge tracker on electric vehicle chargers and charge them the same penny to keep the road wear and tear fee fair. New lottery tickets dedicated for specific funding as has been proprosed in the comments here in the past would be good, too.
The simple fact of the matter is that we’re taxed at a far higher rate and cost than we were when we rebelled against England and we are too dependent upon frivolous government services with politicians who simply raise taxes instead of learning how to cut costs and budget. A shock to the system is exactly what we need.
Prohibiting local governments from foreclosing on homesteaded property for unpaid taxes would be a lot more complicated than it sounds. Historically whenever property taxes aren’t paid tax deeds are sold at auction to whoever bids the lowest interest rate. After a few years the owner of the tax deed may foreclose and put the property up for sale if the homeowner doesn’t pay them back along with the interest charges bid at auction. Would this be an end to homesteaded tax deeds and will the government pay off all existing tax deeds on homesteaded property? Just doesn’t sound like they’ve though most of this through. In the end we’re still going to have to pay for all our streets, drainage, schools and other government services so I’d like to know what taxes and fees I’ll be paying to replace property taxes.
At the very least, pass a Law that says once you turn 65, you no longer have to pay Taxes on your Homesteaded Home if you are living in it. Before you say it, I will bet that there are a few homes out there that are Homesteaded that the owners are not actually LIVING in.
I don’t care. Government provides too many services that are not in direct support of public safety. I want to be left alone by my government. I want to be able to paint my shed whatever I want. I want to be able to cut down a tree without permission. I want to stop paying rent to the government for a property I already own.
Tighten the belt. Stop splashing out cash around. They spend because they can tax unfettered. Cut the purse strings and become free.