Florida Taxwatch released “Options to eliminate or reduce property tax burdens for Florida homeowners” to provide the Florida Property Tax Commission’s Select Committee prior to the commencement of Monday, September 22nd.
Property taxes are by far the largest source of tax revenue for local governments in Florida, generating $55 billion in 2024 for counties, school districts, municipalities and special districts, and is rapidly increasing. Of this total, $19 billion will be paid by Florida homeowners. This proceeds fund important government services such as public safety, fire prevention, education and hygiene. Furthermore, local governments often increase without increasing millage tax revenue, as property values usually rise and often generate millions of dollars in additional property tax revenue.
“There is no doubt that taxpayers and local governments will be affected by a comprehensive decline in property tax revenues as they carry the financial burden of many important government services,” said Dominique M. Calabro, president and CEO of Florida Tax. “Because policies for voters to ultimately decide should be comprehensive and strategic, we will engage both state and local governments to ensure smooth transitions and implementation, uninterrupted delivery of key government services such as public safety and education. Relief should focus on homestaders and prevent tax burdens from being transformed into non-homested property.”
“Florida TaxWatch praises the governor and the legislature for taking on this conversation. One argument to offset property tax cuts is to increase the sales tax on the surface. Continuingly monitor their spending and control the growth of their budgets,” said Jeff Cotkhamp, executive vice president and general counsel at Florida TaxWatch.
“Since 2006, Florida voters have seen 17 constitutional amendments to property taxes backed by the Florida Legislature and focus on Homestead’s relief. Whatever the ultimate outcome of the property tax debate, state and local governments must work together to achieve responsible stewardship of taxpayer dollars.”
“We are pleased to announce that we are a great source of energy,” said Brandi Gander, Vice President of Florida Taxwatch Research. “Florida has long been recognized as a leader in promoting responsible fiscal policy, and Florida Tax welcomes this dialogue in examining five potential approaches to property tax reform for Florida homeowners without the need for constitutional reform.”
Option 1. Property Tax Stages for Florida Homeowners
Using the 2024 figures, eliminating property taxes for around 5 million homestead properties in Florida, local governments will be around $19 billion. Current growth estimates for Homestead Taxable Value assume that this will grow to around $30 billion by 2030 with no change in millage rates.
A more measured approach is to gradualize total elimination over the years, providing ongoing revenues for critical government services over known periods, allowing state and local governments to plan a sharp reduction in revenue. Gradual elimination is achieved by an annual increase in Homestead’s exemptions and can be changed from dollar amount to a percentage of value value value. Policymakers can determine how long the Valorem tax will be phased out for Homestead’s property.
Florida Tax Watch reviews two proposals to eliminate property taxes for homeowners over a decade, based on the valuation of 5 million homestead properties in 2024.
Under the 10-year plan, increasing the current exemptions, accounting for 25% of the valuation of the 2nd year frozen year, and increasing by 10% each year over the next 10 years, will eliminate the current 5 million homestead property fixed assets over the 10 years. This staged proposal will provide a $1 billion tax cut in year 2. Under the 30-year plan, exemption values will be slower than the 10-year plan, steadily reducing the $655.2 million annual homestead property tax.
Option 2. Prioritizes elimination of property taxes for senior Florida homeowners
Florida has one of the nation’s most elderly population, with 22.7% of the total state population age 65 and above. Currently, the senior homestead exemption totals $8.3 billion, 0.6% of the total valuation of Homestead properties.
To help Florida seniors stay in their homeowner property taxes to maintain financial stability and stay in their homes as long as they are physically competent, the staged proposal to eliminate homeowners’ property taxes is retroactive for older people age 65 and up and count as the previous year’s total. For example, under the 10-year gradual elimination proposal, eligible seniors who have requested a homestead in Florida for at least 10 years will be waived 100% of their home valuation in their first year.
Data show that almost 19% of the state’s total population is homeowners over the age of 65. Assuming that 19% of eligible senior homeowners are claiming a homestead for a determined number of years, we could eliminate an estimated $3.6 billion in property tax revenue under the proposals argued by our longtime grandfather of Florida Homesteads over the ages.
Option 3. Eliminate property taxes for Florida homeowners, excluding school property taxes.
School Advertising Valorem Tax generates $21.5 billion in school districts. That total of about $13.7 billion is paid for almost half of the state’s $29.5 billion Florida Educational Finance Program, which funds the state’s public kindergarten schools. The council sets an RLE Mirrorage Rate every year, and all local governments must adopt a fee to receive state funds. RLE is not eligible for some exemptions, including a second homestead exemption or a 10% increase cap for non-homastered properties.
Florida Homestead Properties accounts for about a third of the school’s tax value, generating an estimated $7 billion in school advertising tax. To maintain school funding, policymakers can decide to keep taxation at all schools in effect and eliminate only non-school property taxes. Using the 2024 figure, the gradual removal of all non-school ad Vlorem taxes for approximately 5 million Florida homestead properties would ultimately cost an estimated $12 billion over a period determined to local government.
Option 4. Lower property taxes on Florida homeowners
The proposal to simply lower the tax liability of property owners is to provide a set percent reduction in the previous year’s valuation for each property in the state, and requires all local governments to adopt the previous year’s millage tax. For the next five years, local governments will have to adopt a rollback rate, with a set percentage reduction added for calculations.
This creates clear cuts guaranteed to taxpayers that could not be reduced by hiking Millage. This exemption may apply to all property types. Or Congress could limit it to Homestead. If limited to Homestead, the proposal will ensure that reduced tax burdens do not transfer to other property owners. Policymakers can choose to reduce the percentage that achieves the desired amount savings. A 20% exemption on all property would save $11 billion, or $8 billion, if only Homestead were exempt.
Option 5. Statutory changes to bring transparency and accountability in 2026
Eliminating or significantly reducing property taxes is likely to require constitutional amendments, but Congress has extensive statutory powers to reform the property tax process and can create targeted policies at the 2026 legislative conference aimed at curbing revenue growth and increasing transparency.
Note: Options 1-4 require constitutional amendments that are agreed to by 60% of voters. Option 5 includes several ideas that can be enacted through statutory changes. Click here for more information.
About Florida Tax Watch
To improve the productivity and accountability of the Florida government, Florida State Tax (FTW) is an independent, nonpartisan, nonprofit government watchdog and taxpayer research lab, which has worked for over 45 years as the trustworthy “eyes and ears” for Florida taxpayers. The study recommends productivity improvements and explains the statewide impact of financial and economic policies and practices on taxpayers and businesses. FTW is supported by its membership through voluntary, tax-deductible contributions and private grants. The donation provides a robust and lasting foundation that allowed FTW to take more responsibility for taxpayers that have served since 1979, and to bring about a productive, more effective and responding government. For more information, please visit www.floridataxwatch.org.
