(The Center Square) – Florida homeowners could see substantial savings if voters pass the constitutional amendment on property tax relief in November.
A fiscal analysis estimates homeowners would save $4.6 billion in the first year of its implementation and as much as $8.4 billion in the second year.
The constitutional amendment, which legislators passed in a special session last week, would provide a new $150,000 homestead exemption for non-school taxes in 2027. The exemption would rise to $250,000 in 2028.
Owners who are not permanent Florida residents would also benefit from a five year $50,000 exemption. After five years of Florida residency they would be eligible for the $250,000 exemption.
While voters have indicated widespread support for property tax relief, local governments and policy analysts are wary that sales taxes could rise exponentially to offset the loss of revenue.
The amendment would limit counties and municipalities from using ad valorem taxes for anything aside from core needs including public safety, education, infrastructure, natural resource projects, and other core functions.
Governor Ron DeSantis, who has pushed for property tax relief, has repeatedly criticized large increases in local government budgets.
An analysis found Florida counties spent 16.4% of their budgets on non-operating expenditures while municipalities spent 11% on non-operating expenditures.
Last year, the Florida Department of Government Efficiency investigated jurisdictions for waste, fraud, and abuse. DeSantis said the investigation found “many irresponsible” uses of taxpayer money including a $75,000 hologram of Jacksonville’s mayor, $150,000 a year to a management company that brought drag shows to a Pensacola theater, and $460,000 over the span of five years to count trees for Orlando’s “tree inventory,” among other findings.
DeSantis argued local governments could cut unnecessary expenses in response to a drop in revenue.
However, critics have pushed back saying taxpayers will end up paying for property tax relief elsewhere.
“State lawmakers should be focused on real solutions to Florida’s affordability issues, which include skyrocketing health care and energy costs,” said Sadaf Knight, CEO of Florida Policy Institute. “Unfortunately, this property tax reform measure does not represent cost savings, but rather a cost shift — one that will force local lawmakers to cut local services that families rely upon or increase other taxes and fees to make up for the missing revenue. In either case, everyday Floridians ultimately pay the price for the massive loss in property tax revenue.”
The constitutional amendment requires at least 60% of the vote to pass in November. If adopted, it would go into effect in January.
