Florida House Passes Bill to Eliminate Most Property Taxes

The Florida House of Representatives on Thursday voted to pass a bill which would create a ballot amendment to eliminate almost all homestead property taxes in the state. The only clear and major exemption from the measure is taxes levied by local school districts. Thursday's vote doesn't mean the amendment is headed to the ballot - far from it. The Florida Senate would have to also approve the bill, and the Gov. Ron DeSantis would need to sign it into law. DeSantis has indicated in the past that he's receptive to potentially eliminating Florida's property taxes. HJR 203 would phase out property taxes over a ten-year period, beginning in 2027 and ending in 2037. Each year an additional $100,000 homestead tax exemptions would be added until the tax was eliminated entirely. A report from the Florida Policy Institute estimates that 83% of Florida homeowners would be included in this rollback. The vote Thursday was 80-30 in favor of HJR 203, with the Republican supermajority voting for the bill and the Democratic minority dissenting. The Florida Senate hasn't advanced a parallel measure to a vote during this regular session, which concludes on March 13. If the amendment to eliminate property taxes appears on the ballot in Florida, it will pass only with a 60% majority vote. This threshold has led to the failure of major initiatives which were above 50%, including the legalization of recreational marijuana in 2024. The elimination of property taxes would save Florida homeowners money in the short term, but could lead to increases in other revenue sources like sales taxes. Local governments across the state would be forced to account for the loss of a huge budget contributor. According to Axios, local governments in Florida would lose out on a collective $13.3 billion per year without property taxes. There are also two alternate proposals being put forth in the Florida House of Representatives. HJR 209 stands to expand homestead exemptions from $25,000 to $200,000 for those with comprehensive homeowners insurance. HJR 213 would create a three-year buffer on property tax assessments by cities and counties instead of the current annual schedule, as well as capping increases at 3% for primary residences.