Lawmakers to begin special session on property taxes

Florida lawmakers begin a special session today to consider Gov. Ron DeSantis' proposal to increase the homestead exemption and establish a path toward eliminating property taxes on primary residences.

During the special session, lawmakers will decide whether to place the amendment on the ballot for voter consideration. Constitutional amendments in Florida require at least 60% voter approval to pass.

DeSantis' plan, called "Save Our Homes from Excessive Property Taxes," includes:

• Homestead exemption: Creates a new homestead exemption of $150,000 in 2027, rising to $250,000 in 2028 and adjusted annually for inflation. The proposal also would require lawmakers to create a process allowing local governments to increase exemptions beyond those levels, potentially up to full elimination of homestead property taxes.
• Local government funding: Restricts remaining property tax revenue to core government services, including public safety, education, infrastructure and natural resources.
• Business property taxes: Lowers the maximum annual increase in assessed value on non-homesteaded properties from 10% to 5%. The proposal would not eliminate taxes on non-homesteaded properties such as rental homes, vacation properties, second homes and commercial real estate.
• New residents: Requires a waiting period of up to five years for certain new Florida residents to qualify for the enhanced homestead exemption.
• State funding: Creates a trust fund to help local governments maintain core services.

The proposal follows months of discussion among state leaders about how best to provide property tax relief.

Senate President Ben Albritton said in a memo to senators that he supports the proposal and believes it would provide tax relief while protecting funding for public safety, education and water infrastructure.

House Speaker Daniel Perez said the House previously passed a proposed constitutional amendment to eliminate homestead property taxes and would review the governor’s plan. The Senate did not advance the House measure, citing concerns about the effect on smaller counties with limited tax bases.

The issue has prompted discussions about how local governments would replace property tax revenue.

Florida Association of Counties deputy executive director Cragin Mosteller told the News Service of Florida that counties are prepared to engage in the discussions, but emphasized the need to consider long-term budget and funding issues.

“Floridians want affordability, but eliminating property taxes does not eliminate the cost of infrastructure, emergency response, and other essential local services,” Mosteller told the News Service. “Those costs do not disappear — they shift somewhere else, often onto businesses, renters, and working families.”

The Florida League of Cities said property taxes account for roughly 43% of municipal general fund revenue statewide and are the primary locally controlled source of funding for many city services. Its study found that rural communities could face greater challenges replacing lost property tax revenue because they have fewer alternative revenue sources than larger cities.

News Service of Florida contributed to this report.

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