Rising insurance costs plus property tax creating a heavy burden
of ConsumerAffairsAs Florida homeowners struggle with rising property taxes and skyrocketing insurance premiums, state leaders are exploring a radical solution: eliminating property taxes altogether.
- State lawmakers are considering eliminating property taxes amid soaring home costs.
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The move could make Florida the first state in the nation to abolish the tax.
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Critics warn that lost revenue could drastically impact schools and public services.
Homeowners feeling the strain
While a full repeal remains unlikely in the near future, the idea is gaining traction among lawmakers and reflecting the financial strain many residents are facing.
The proposal, which would make Florida the first state to abolish property taxes, is a central topic of discussion in the legislative session that began this month. Republican Governor Ron DeSantis has urged lawmakers to provide relief, and multiple bills have been introduced to either eliminate the tax entirely or implement targeted adjustments.
Growing political momentum
People are getting crushed not just by home insurance but by property taxes, said GOP state Sen. Jonathan Martin, who has introduced a bill that would commission a study on eliminating property taxes by October in a Wall Street Journal report. "That American dream in Florida is taking five figures a year in local taxes."
The push to overhaul Floridas property-tax system mirrors a broader national movement. Home values in the U.S. have surged by 27% since 2020, and states like Wyoming, Kansas, and Montana are also considering significant property-tax limitations. However, a similar effort in North Dakota failed in a statewide vote last November.
The cost of repeal
While homeowners might welcome the elimination of property taxes, doing so would leave a gaping hole in Floridas budget. Currently, property taxes generate more than $55 billion annually, funding essential services such as schools, police departments, and infrastructure projects. According to the Florida Policy Institute, property taxes account for 18% of county revenue, 17% of municipal revenue, and up to 60% of school district funding.
If property taxes were eliminated, the states sales tax would need to be at least doubledfrom 6% to 12%to compensate for the lost revenue, a recent report warned.
Homeowners feeling the pressure
Retirees, in particular, are being hit hard by rising home costs.
In response, lawmakers have proposed bills that would increase exemptions for primary residences and adjust the homestead exemption for inflation. However, critics argue these measures may not be enough to offset rising home costs and the broader economic impact of eliminating property taxes altogether.
Whats next?
While the complete repeal of property taxes remains a long shot, the growing discussion signals that Florida lawmakers are under increasing pressure to address housing affordability. Whether through incremental changes or a full-scale tax overhaul, relief for homeowners is likely to remain a top legislative priority in the coming months.
Posted: 2025-03-20 18:59:57
