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A Radical Proposal That Could Reshape Homeownership in the Sunshine State
Florida lawmakers are exploring a groundbreaking proposal to eliminate property taxes, a move championed by Republican Gov. Ron DeSantis as home values and insurance costs continue to skyrocket across the state.
While the idea is gaining traction, it faces significant hurdles, as property taxes serve as a crucial revenue source for local governments. Eliminating them could necessitate a sharp increase in sales taxes, with some estimates suggesting rates would need to jump to at least 12% to compensate for lost funds.
What’s Driving the Proposal?
Florida’s real estate market has seen soaring home prices, while homeowners grapple with rising insurance premiums—which can exceed $8,000 annually in some cities. The average property tax rate in Florida is 0.79%, meaning a home valued at the state average of $385,000 carries a tax burden of approximately $3,041 annually.
With no personal state income tax, Florida leans heavily on property taxes to fund essential services. The proposed tax reform aims to ease financial strain on homeowners, but questions remain about how the state would fill the revenue gap.
Can Florida Afford to Cut Property Taxes?
Gov. DeSantis is pushing for a constitutional amendment in 2026 that would either reduce or abolish property taxes. However, such a measure would require 60% voter approval to pass.
To offset the revenue loss, legislators are exploring alternative solutions, including:
- Raising sales tax to 12% or higher
- Increasing tax exemptions to reduce the taxable value of homes
- Cutting government spending at local levels
What’s Next?
While a full repeal of property taxes remains unlikely, the debate is gaining momentum. With dozens of bills already filed in the state legislature, Floridians could soon see significant reforms aimed at making homeownership more affordable.
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