Think tank releases five options, from phasing out the tax to more immediate reforms, ahead of legislative committee meeting.
Florida TaxWatch today released a comprehensive report outlining several pathways to reduce or eliminate the property tax burden on Florida homeowners.
Titled “Options to Eliminate or Reduce the Property Tax Burden on Florida Homeowners,” the primer was published just days before the Florida House of Representatives Select Committee on Property Taxes is scheduled to meet on Monday, September 22.
Property taxes are a cornerstone of local government finance in Florida, generating a massive $55 billion in 2024. Of this, homeowners contribute $19 billion, funding essential services like public safety, education, and sanitation. The total revenue from this tax source is growing rapidly, often without a corresponding increase in millage rates, as property values continue to rise.
Florida TaxWatch President and CEO Dominic M. Calabro emphasized the need for a comprehensive and strategic approach. “Any policy ultimately put forward for voters to decide should be comprehensive and strategic, engage both state and local governments to ensure a smooth transition and implementation, [and] uninterrupted delivery of critical government services,” Calabro said. He also cautioned against shifting the tax burden to non-homestead properties, such as businesses and rental homes.
The report presents five distinct options for lawmakers to consider:
- Option 1: Phased Elimination of Property Taxes. This most ambitious proposal would gradually eliminate property taxes for Florida homeowners over a set period, such as 10 or 30 years. Using 2024 figures, a full elimination of the $19 billion in homestead property taxes would require a carefully managed transition to ensure local governments can maintain services.
- Option 2: Prioritizing Seniors. To provide immediate relief to Florida’s elderly population, this option suggests a retroactive, phased elimination of property taxes for homeowners aged 65 and older. Under a 10-year plan, a senior who has held homestead exemption for a decade could see their property taxes eliminated immediately.
- Option 3: Excluding School Taxes. This proposal would eliminate all property taxes for homeowners except for the portion that funds public schools. School ad valorem taxes account for $7 billion from homestead properties and are critical to funding the Florida Education Finance Program. This option would maintain a stable funding source for K-12 education while still providing substantial tax relief.
- Option 4: Guaranteed Tax Reduction. This would implement a set percentage reduction of the previous year’s assessed value for all properties, or just homesteads, and require local governments to adopt the “roll-back rate” for a set period. This approach provides a definite tax cut for homeowners that cannot be offset by millage rate increases.
- Option 5: Statutory Changes for Transparency. Recognizing that a constitutional amendment is a lengthy process, this option outlines several immediate statutory changes the Legislature could make in the 2026 session. These measures would increase transparency and accountability in the property tax process and could be enacted without a constitutional amendment.
“Florida TaxWatch commends the Governor and the Legislature for taking on this conversation,” said Jeff Kottkamp, Florida TaxWatch Executive Vice President and General Counsel. He pushed back on the idea of a simple sales tax increase to offset property tax losses, stating that it “does not force local governments to continually monitor their spending and control the growth of their budgets.”
The think tank’s report serves as a primer for legislators and the public, providing a detailed analysis of the potential impacts of various reform strategies.
With a select committee meeting on the horizon, the debate over Florida’s property tax system is set to intensify, and Florida TaxWatch aims to provide a reasoned foundation for that discussion.
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