Florida Toys With Idea of Killing Property Tax

Florida pulled in more than $55 billion in property taxes for the 2024-25 fiscal year—and some in the state are considering the idea of dropping that figure to zero. The Wall Street Journal reports that the state's property-tax system is among the hottest topics among legislators who are back in session, and that some are eyeing the possibility of doing away with property taxes altogether as a way of providing financial relief to homeowners. A high-level overview:

• Politicians on board: Republican Gov. Ron DeSantis is on board with reducing or even phasing out the tax, which he describes as unfair—arguing that its existence means no one truly owns their home, reports the Tallahassee Democrat. GOP state Sen. Jonathan Martin has sponsored a bill that would require a study on wiping out property taxes be done by October. DeSantis wants to see a constitutional amendment that would kill or trim them on the ballot in 2026; 60% of voters would need to vote in favor to pass.

• It would be a novel move: Were Florida to eliminate property taxes, it would be the first state in the US to do so. Florida is already one of nine US states without a personal income tax.
• The cost of owning a home: The Journal reports median home prices in Florida have exploded; they're up 300% in the Orlando and Tampa metro areas and 400% in the Miami area since 2012. The average home insurance price in the state has jumped from $1,973 in 2018 to $3,731 in 2024.
• The potential implications for the state: DeSantis has said any revenue shortfall wouldn't be made up by raising state taxes, but that local governments could eliminate waste to counteract the drop in revenue. Property taxes make up 18% of county revenue, 17% of municipal revenue, and 50% to 60% of school-district revenue, per the Florida Policy Institute.
• What critics say: A letter to the editor published in the Sarasota Herald-Tribune argues that a sales tax increase would be inevitable, which raises two major concerns: that more power would shift to Tallahassee, as more revenue would go to state instead of local hands; and that permanent citizens would pay more while part-timer residents would effectively get a tax break.
• Other options: WFTS reports GOP state Rep. Ryan Chamberlin is pushing two bills focused on relief rather than elimination. One would establish a $100,000 property tax exemption for all properties, while the second would cap property tax revenue growth at 2% annual (any excess would be rebated or used to pay down government debt).