Q&A of the Day – Implications of the Florida Legislature’s Property Tax Proposal
Each day I feature a listener question sent by one of these methods.
Email: brianmudd@iheartmedia.com
Social: @brianmuddradio
iHeartRadio: Use the Talkback feature – the microphone button on our station page in the iHeart app.
Today’s entry: This is verbatim from the FLHOUSE website about eliminating property taxes: to prohibit local governments from reducing total funding for services provided by law enforcement, firefighters, and other first responders, and provide an effective date.
My question is: Since I have a total of 13 lines of ad valorem taxes on my property, what will happen to lines such as everglades funding, DDA, and Healthcare District?
I have two non-ad valorem assessments, who is to say they move the math cost to another line and charge a fixed fee, such as how we fund Solid Waste?
Bottom Line: Entering this year’s state legislative session there were eight different proposals aimed at cutting property taxes in Florida. Early in the session the total grew to over a dozen. What we’ve seen over the past week is that one of those proposals has emerged as the leading contender to be placed on the ballots of Floridians to consider in November. The bill entitled: Elimination of Non-school Property for Homesteads passed the Florida House last Thursday and is now in the hands of the state Senate.
Out of all drafted proposals by legislators, it is this proposal which goes the furthest down the path of property tax elimination which will tie directly into addressing today’s question. The proposed amendment’s bill is an eight-page document which reads like this:
- Every person who has the legal or equitable title to real estate and maintains thereon the permanent residence of the owner, or another legally or naturally dependent upon the owner, shall be exempt from taxation thereon, except assessments for special benefits, as follows: (1) Up to the assessed valuation of twenty-five thousand and (2) For all levies other than school district levies
Without getting into the weeds of the legislation, it’s straight-forward in concept but more complicated in getting there. If the current draft does pass through the legislature, and if it does make its way to voters’ ballots in November, and if at least 60% of voters do vote in favor of the proposed amendment...a ten-year property tax cutting process will begin starting January 1st of 2027.
- As is noted in the House’s Bill Analysis: Beginning in 2037, the entire assessed value of homestead properties would be exempt from all ad valorem taxes other than school taxes.
In answer to today’s question, all taxing authorities/lines of ad valorem taxes, other than for school districts would no longer exist for homesteaded properties upon the full effect of the legislation phasing in. Therefore, there wouldn’t be the ability for taxing districts to attempt to move or reclassify assessments on a property tax bill.
Additionally, the proposed amendment would prohibit local governments from reducing funding for services provided by law enforcement, firefighters, and first responders below existing levels.
Notably, the law would only apply to homesteaded properties, which is where a minority of property tax revenue comes from. According to the latest study by the Florida Policy Institute, homesteaded property taxes only accounted for 36% of statewide property tax revenue collected. In other words, all existing taxing authorities would still exist for all other property types, with annual increases limited under current state law.
Also, of significance is Governor DeSantis’s stated position that all property taxes should be eliminated. Last Thursday, with the passage of the House’s version of this bill, DeSantis said this: Regarding a property tax proposal for the 2026 ballot: we’ve been working with members of the Senate who have been great partners. Given that it can’t be voted on by the people before November, it’s better to do it right than do it quick!
That message suggests the Senate is working on a different proposal than what the House passed. I would be surprised if the House proposal is the proposal which ended on our ballots in November. To be continued...