Florida lawmakers will examine the potential elimination of property taxes under legislation filed this week by Sen. Jonathan Martin.

The bill, SB 852, directs the Office of Economic and Demographic Research (OEDR) to study how the state could replace property tax revenue through alternative means, such as sales-based consumption taxes or budget reductions.

The study will evaluate the financial impact of eliminating property taxes, which fund public schools, infrastructure, law enforcement, and emergency services. It must assess whether sales or consumption-based taxes could generate stable revenue without disrupting essential services. The study will also determine also want to determine whether removing property taxes would affect homeownership rates, property values, and overall market stability.

The bill further requires an analysis of how the change could impact Florida’s business environment by inquiring as to whether shifting to a consumption-based tax model would further enhance Florida’s competitiveness. The study will also examine the economic risks of relying on sales taxes, which can fluctuate based on consumer spending.

If the bill is passed, OEDR must submit its findings to the Senate President and House Speaker by Oct. 1.