DeSantis Property Tax Plan Would Cost Florida Counties $4.6 Billion, Officials Warn
Florida counties could lose $4.6 billion under DeSantis’ property tax plan, with advocates warning the proposal would shift costs to renters and businesses.
TALLAHASSEE, FLORIDA — Local government advocates warned Monday that Governor Ron DeSantis’ proposal to substantially reduce homeowners’ property taxes would cost Florida counties billions of dollars and shift tax burdens to renters and businesses.
The Florida Association of Counties and Florida League of Cities held emergency webinars for their members ahead of this week’s special legislative session on the property tax proposal, which lawmakers are expected to approve or reject by Wednesday.
Under the proposed constitutional amendment filed in the Senate last week, Florida homeowners who establish permanent residency by the end of 2026 would receive a $150,000 homestead exemption in 2027 and a $250,000 exemption beginning in 2028.
Revenue Loss Projections
The Florida Association of Counties estimates the proposal would cost counties $4.6 billion by fiscal year 2028-29. The Florida Policy Institute projects the $250,000 exemption alone would cost counties an average of $4.8 billion annually, reaching $8.65 billion with full elimination of homestead taxes by fiscal year 2030-31.
“We know this is a tax shift,” said Jeff Scala, deputy director with the Florida Association of Counties, during Monday’s webinar. “They’re framing this as a tax cut, but there are small businesses, all businesses, they’re going to feel the pain. Renters — they’re not going to get an exemption. This proposal makes Florida more unaffordable.”
No Guaranteed Replacement Revenue
Casey Cook, chief of legislative affairs for the Florida League of Cities, and Scala emphasized that the proposal includes no guaranteed replacement revenues for local governments, school districts, and special districts that rely on property tax collections for essential services.
The concerns come despite the proposal including a trust fund mechanism, though local government advocates question its adequacy to replace lost property tax revenue.
DeSantis unveiled the plan five days ago, giving local governments minimal time to analyze its potential impacts before the Legislature convenes for the special session. If approved by lawmakers, the constitutional amendment would then require approval from 60% of Florida voters later this year.
Impact on Essential Services
Local government officials worry the revenue reductions could affect funding for schools, healthcare, public safety, and other essential municipal and county services currently supported by property taxes.
The proposal represents a major shift in Florida’s tax structure, moving the burden from homeowners to commercial properties, rental properties, and businesses that would not benefit from the expanded homestead exemptions.
Florida homeowners currently receive a $50,000 homestead exemption on their primary residences. The proposed increases would represent the largest expansion of homestead exemptions in state history if approved by voters.
