Republican lawmakers are advancing legislation to cap property tax increases, citing efforts to provide stability for homeowners and businesses amid rising property values.

House Bill 787 and Senate Bill 996 — identically filed by Rep. Ryan Chamberlain and Sen. Jay Collins, respectively — would revise how local governments calculate tax rates and limit the maximum millage rates they can levy.

The bills seek to modify the state’s “rolled-back rate,” a calculation used to determine the tax rate needed to generate the same revenue as the previous year, excluding new construction and other taxable additions. Under the proposed changes, the rolled-back rate would no longer account for certain property value increases, including substantial rehabilitations that double assessed values, boundary adjustments, and tangible personal property growth exceeding 115% of the prior year’s total.

If enacted, local governments would be restricted to levying a maximum millage rate of 102% of the prior year’s rolled-back rate, adjusted for changes in per capita Florida personal income. Any revenue collected beyond that threshold must either be refunded to taxpayers on a prorated basis or used to pay down local government debt.

“For years, there has been massive revenue growth in property tax collections throughout the State of Florida,” said Chamberlin. “This has been an immense drag on our economy. With this next step, Florida can begin the process of putting private property back into the hands of the people. This cap and rebate mandate will hold taxing entities to a defined fiscal accountability standard and will pave the way for a comprehensive approach to fully phasing out property taxes in Florida and replacing them with a combination of consumption taxes.”

The bills include provisions allowing local governing bodies to exceed the 102% cap under specific conditions. A two-thirds vote would permit an increase up to 110% of the rolled-back rate, while a unanimous vote—or a three-fourths majority for governing bodies with nine or more members—would be required for any rate exceeding that level. A voter referendum could also approve a higher rate.

Counties that levy a public hospital surtax, as authorized under Florida law, would be allowed to exclude those revenues from their millage rate calculations, though they would be factored back in after rollbacks are applied. Additionally, municipalities operating under home rule charters dating back to Florida’s 1885 Constitution would be formally recognized as municipalities for taxation purposes.

Both measures are scheduled to take effect on July 1, 2025, if approved by the Legislature and signed into law.