The Florida House of Representatives elected the Property Tax Committee last week.
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.
Dollars from local property taxes fund important government services, including public safety, fire prevention, education and hygiene. Over the past few years, local governments have earned more money. Not by raising taxes, but by increasing the value of real estate, which brings millions of dollars.
Florida Taxwatch believes that some plans will give voters the option to cut taxes while maintaining government services.
Option 1. Property Tax Stages for Florida Homeowners
TaxWatch suggests that this can be achieved through gradual elimination over the years by increasing the homestead exemption and converting it from dollar amount to a percentage of value value. Policymakers can determine how long the Valorem tax will be phased out for Homestead’s property.
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
If older people remain in the home as long as they are physically capable, the gradual proposal to eliminate homeowner property taxes is retroactive for older people over the age of 65 and can count as the total number of years outlined. 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.
Option 3. Eliminate property taxes for Florida homeowners, excluding school property taxes.
The Valorem tax on school ads brings about $21.5 billion to the district. About $13.7 billion of these total funds pays nearly half of the state’s Florida Educational Finance Program, funding the state’s K-12 public schools.
Taxwatch speculated that policymakers may decide to keep taxation at all schools in effect, eliminate non-school property taxes only, and ensure that there is sufficient tax revenue to fund public schools.
Option 4. Lower property taxes on Florida homeowners
“The proposal to simply lower the tax liability of property owners is to provide a defined percentage of the previous year’s valuation for each property in the state and require all local governments to adopt the previous year’s millage rate. For the next five years, local governments must adopt the rollback rate.
