In a groundbreaking policy shift, Florida Governor Ron DeSantis has proposed the complete elimination of property taxes for homesteaded properties across the state. This ambitious plan, if enacted, would make Florida the first state in the U.S. to abolish property taxes entirely—a move that has sparked both enthusiasm and concern among residents, economists, and policymakers.
The Proposal
Governor DeSantis’s proposal aims to provide immediate financial relief to homeowners by eliminating property taxes on primary residences. The plan includes issuing rebates averaging $1,000 to homeowners, funded by redirecting $5 billion in proposed sales tax cuts toward property tax relief. These rebates would be distributed in December 2025, benefiting over 5.1 million homesteaded properties statewide.
Looking beyond the immediate relief, the governor envisions a constitutional amendment on the November 2026 ballot to permanently eliminate property taxes for homesteaded properties. This would require approval from 60% of voters, as stipulated by Florida’s constitution.
Governor DeSantis argues that property taxes effectively require homeowners to “pay rent to the government,” even after their mortgages are paid off. He contends that eliminating these taxes would empower Floridians and reduce the financial burden on homeowners, particularly seniors and fixed-income residents.
Financial Implications
Property taxes currently generate approximately $50 billion annually in Florida, funding essential services such as public education, law enforcement, and infrastructure. Eliminating this revenue stream without a clear replacement plan raises significant concerns about the sustainability of public services.
To offset the loss, some proposals suggest increasing the state’s sales tax, potentially doubling it from 6% to 12%. However, this approach has faced criticism for potentially burdening lower-income residents and tourists, who may not benefit directly from property tax elimination.
Legislative Response
The proposal has garnered mixed reactions from Florida lawmakers. Senate President Ben Albritton has introduced Senate Bill 7034, which calls for the creation of a formal study commission to assess the economic, fiscal, and societal effects of reducing or eliminating property taxes. This cautious approach reflects a broader sentiment in the legislature: while there is interest in offering property tax relief, any reform must be backed by rigorous analysis and a feasible replacement plan.
Conclusion
Governor DeSantis’s proposal to eliminate property taxes marks a bold step in Florida’s fiscal policy. While it promises significant relief to homeowners, it also presents complex challenges in terms of funding essential public services. As the debate unfolds, the state’s residents and lawmakers will need to carefully consider the long-term implications of such a transformative change.