Florida TaxWatch on Monday urged lawmakers to slow consideration of Gov. Ron DeSantis’ proposed property tax overhaul, warning that the plan could shift costs to businesses and other non-homestead property owners while creating new fiscal pressures for the state.
The nonprofit government watchdog released its analysis as the Florida Legislature meets in special session to consider the governor’s proposed constitutional amendment and related legislation. The proposal would raise the homestead exemption to $150,000 beginning Jan. 1, 2027, and to $250,000 beginning Jan. 1, 2028. It also would reduce the annual assessment cap on non-homestead properties from 10% to 5%, though not for school property taxes.
Florida TaxWatch said it supports significant property tax relief, citing rapid growth in local property tax collections over the past decade. But the group said the debate should also focus on the growth of local government budgets, arguing that without spending limits, reduced homestead tax revenue could be replaced through higher taxes, fees, assessments or a larger burden on non-homestead properties.
“We agree that Floridians need relief from ever escalating property taxes. 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,” the organization said, adding that “It must be considered that replacing lost school property taxes, as well as creating the mandated state trust fund to help local governments pay for core services, would result in billions in recurring expenses for the state. This may not be prudent with potential future budget shortfalls already estimated by the state. A thorough, official fiscal impact estimate must be developed before a major tax change such as this is adopted.
The organization also cautioned that Floridians would still receive property tax bills for special assessments, which it said could expand if local governments seek replacement revenue.
Rather than approving the proposal during a fast-moving special session, Florida TaxWatch recommended that the issue be taken up by the Taxation and Budget Reform Commission, which is scheduled to be appointed in 2027, which the group said would provide additional time to study property taxes, government spending and fiscal impacts before placing potential reforms before voters.
