(NewsNation) — Florida may try and combat its home ownership costs by cutting property taxes.
At least, that’s what some Florida lawmakers and Republican Gov. Ron DeSantis are pushing for. In his State of the State address, DeSantis urged the legislature to either eliminate or greatly reform property taxes.
“You buy a home, pay off a mortgage — and yet you still have to write a check to the government every year just to live on your own property? Is the property yours or are you just renting from the government?” DeSantis said during the March 4 address.
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Floridians are shelling out some of the highest property taxes in the nation, according to CoreLogic data, Housingwire.com. The median 2024 property tax in Florida was just over $3,100 — a 9.5% increase from 2023. The cost has jumped by 47.5% since 2019.
The governor has said his goal is to get a constitutional amendment about property taxes on the ballot in 2026. It would take 60% voter approval to pass.
What would eliminating Florida’s property tax do?
Florida has no personal income tax, which means property taxes contribute majorly to public services that don’t “have offsetting revenues or pay for themselves,” according to the Pinellas County official website.
That includes public schools, law enforcement agencies, social services, environmental programs, roads and parks. In Florida, property tax isn’t collected by the state but locally — meaning what the taxes pay for, and how much they are, varies county-by-county.
It also means that locales would likely be left with a large deficit if property taxes were cut altogether.
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According to the Florida Policy Institute, a nonprofit focused on economic mobility in the state, Florida’s property taxes account for 17% of municipal revenue, 18% of county revenue and 50-60% of school district revenue.
The institute predicts that, if property taxes are dropped, the state’s sales tax would have to be at least doubled (up to 12%) to cover the loss.
DeSantis responded to the FPI’s findings in a post on X: “I’m pretty sure the Legislature would not raise the sales tax and I’m quite certain I’d veto any increase. This is a bogus report.”
Florida’s home prices
The push to eliminate property taxes comes as the Sunshine State sees a continued cooling of its real estate market — a change in tune from the massive influx of new residents during the pandemic.
With demand high, Florida cities saw housing prices shoot up faster than the national average in recent years. But a 2024 Redfin analysis said the growing prevalence of natural disasters — which has led to higher home insurance costs — is discouraging homebuyers and impacting the region’s real estate market.
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Redfin’s most recent numbers show Florida’s median sale price up 0.8% — to $410,900 — year-over-year in February. The state also recorded a 10% drop in sales between this February and last.
The metros with the fastest growing sales price include Miami Beach, Naples, Merritt Island, Coral Gables and Marco Island.
NewsNation’s Andrew Dorn contributed to this report.
