Voters in Florida on Tuesday were provided a constitutional amendment on property taxes for the Nov. 3 ballot.
The measure passed the House of Representatives 75-26 and the Senate 30-9.
The constitutional amendment needs 60% in favor to pass. Florida voters have indicated bipartisan support for property tax relief, with 77% saying they would vote in favor.
The plan approved Tuesday increases the current exemption for homestead properties to $250,000 over two years and creates a framework for full exemption over time, according to Senate President Ben Albritton’s office.
If passed by voters in November, homeowners will be able to access a $150,000 homestead exemption beginning Jan. 1. It will increase to $250,000 the following year and increase by inflation each year after that.
The measure does not apply to ad valorem taxes collected for schools and requires local governments to use remaining property tax revenue to fund public safety, education, road construction and maintenance, natural resource projects, and other essential services.
It also includes safeguards to prevent costs being passed along to small businesses.
“I’m grateful to Governor DeSantis for leading the conversation on cutting property taxes and putting forward this robust proposal for the consideration of Florida voters this fall,” said Albritton.
Most Florida counties have shown increases in property tax revenues that exceeded growth and inflation over the last decade, according to research conducted by the independent nonprofit Florida TaxWatch.
However, an analysis by the organization on the property tax relief proposal passed Tuesday indicates a rapid increase in local government budgets can still cause other taxes and fees to be passed on if guardrails aren’t put in place on local spending.
“Florida’s property tax system already shifts billions in property taxes from homesteads to non-homestead property,” the organization wrote. “This proposal would worsen this inequity, even with the reduction in the non-homestead cap.”
The analysis suggested a thorough fiscal impact estimate was necessary before implementing such a major tax change.
“We agree that Floridians need relief from ever escalating property taxes,” the organization said. “That relief is needed by homestead property owners and non-homestead property owners alike. Issues like how the counties pay for core government functions if we enact property tax reform, or even what functions of government are considered ‘core,’ need to be thoroughly discussed and considered as well.”
