As Florida lawmakers consider ways to address rising property taxes, the taxpayer research group Florida Tax Watch has released five distinct proposals for reform. The options range from immediate transparency enhancements to a complete, phased-in elimination of certain property taxes, each carrying significant implications for local government funding.
The proposals arrive as the state's House Select Committee on property taxes prepares to meet in October, with the goal of developing concrete plans by November for the upcoming legislative session. The debate centers on how to provide relief to homeowners without crippling essential public services.
Key Takeaways
- Florida Tax Watch, a non-partisan research institute, has outlined five potential paths for property tax reform in the state.
- The proposals include immediate changes to tax notices, a gradual phase-out for homeowners, accelerated relief for seniors, and broad-based tax reductions.
- A central concern raised by the group is the potential loss of revenue for local governments, which could impact services like police and education.
- Governor Ron DeSantis supports property tax relief, while others caution that drastic cuts could require new revenue sources, such as a higher sales tax.
- The Florida House Select Committee on property taxes is expected to review these and other options this fall.
The Growing Demand for Tax Reform in Florida
With the 2025 legislative session concluded, the pressure on Florida lawmakers to deliver meaningful property tax relief has continued to build. As legislators work within their home districts, they are in a data-gathering phase before reconvening to formalize proposals for the next session.
In this environment, Florida Tax Watch, which describes itself as the "eyes and ears for taxpayers," has stepped forward with a detailed analysis of potential reforms. The organization has been monitoring the property tax debate closely, advocating for a deliberate and sustainable approach.
"Rather than just have something done quickly one and done, let’s think it through," stated Dominic Calabro, President and CEO of Florida Tax Watch. "Let’s make sure this is something that can last for at least 10 years, because you don’t amend the Constitution readily."
This statement underscores the group's emphasis on creating a long-term solution rather than a temporary fix. The proposals are designed to give lawmakers a framework for a structured and thoughtful debate.
Five Potential Paths to Property Tax Relief
Florida Tax Watch has presented five distinct options, each with a different mechanism for reducing the tax burden on property owners. The plans vary in scope, speed, and impact, offering lawmakers a menu of possibilities to consider.
Understanding Florida's Property Tax System
Property taxes in Florida are the primary source of funding for county and municipal governments, public schools, and special districts. They are calculated based on a property's assessed value and the millage rates set by local taxing authorities. Any significant change to this system directly affects the budgets for local services.
1. Immediate Statutory Reforms
This proposal focuses on changes that the legislature could enact during the 2026 session without amending the state constitution. The primary goal is to increase transparency for taxpayers.
Key elements include making the "rolled-back rate"—the tax rate that would produce the same revenue as the previous year—the default option on tax notices. It would also strengthen disclosure requirements, making it clearer to property owners how their tax bills are calculated and how proposed rate changes would affect them.
2. Phased Elimination for Homeowners
A more ambitious option involves a gradual, multi-year phase-out of property taxes on homestead properties. This would give homeowners a predictable path toward lower taxes over several years.
The phased approach is intended to provide local governments with time to adapt to the steadily decreasing revenue stream, allowing them to adjust budgets and explore alternative funding sources without a sudden fiscal shock.
3. Prioritizing Senior Citizens
Recognizing that many seniors live on fixed incomes, this option would create an accelerated timeline for eliminating property taxes specifically for senior citizens. This would offer more immediate and targeted relief to a vulnerable population that is often most affected by rising property values and taxes.
Homestead Exemption in Florida
Currently, Florida's homestead exemption allows homeowners to deduct up to $50,000 from their property's assessed value for tax purposes. The proposals from Florida Tax Watch would go significantly further than this existing relief measure.
4. Excluding School Taxes
This proposal would eliminate all non-school property taxes for homeowners. By doing so, it would protect the primary funding source for Florida's public education system while still providing substantial tax relief.
Since school districts rely heavily on property tax revenue, this approach aims to strike a balance between reducing the tax burden and maintaining funding for a critical public service.
5. Across-the-Board Tax Reduction
The most straightforward proposal is a simple, percentage-based reduction in the assessed value of all properties for tax purposes. This would deliver immediate and broad-based relief to all property owners, including businesses and homeowners alike.
While easy to implement, this approach would also result in an immediate and widespread reduction in revenue for all local government entities.
The Debate Over Consequences and Funding
While the prospect of tax relief is popular, Florida Tax Watch and other political figures warn that every option comes with significant trade-offs. The primary concern is the potential loss of revenue that funds essential local government operations.
"It’s really important that whatever we do in all 67 counties, core government functions can still be carried out," said Jeff Knottkamp, Executive Vice President at Florida Tax Watch. This highlights the central challenge: cutting taxes without compromising public safety, infrastructure, and education.
Democratic gubernatorial candidate David Jolly voiced stronger concerns about the potential fallout. He suggested that deep cuts would force a difficult choice between finding new revenue or defunding critical services.
"They’re either going to have to embrace a 12% sales tax or have a conversation with voters about defunding police, defunding educators, and defunding transportation," Jolly stated. "Let’s see what the consequence of that property tax repeal might be."
Despite these warnings, Governor Ron DeSantis has remained firm in his commitment to pursuing tax cuts, signaling a strong political will to move forward with reform.
"Don’t let anyone tell you that we can’t do anything on property tax," DeSantis said. "Trust me, entrenched politicians are going to say that."
Next Steps for Florida Lawmakers
The debate is set to intensify in the coming months. The House Select Committee on property taxes is scheduled to convene again in October. The committee's objective is to analyze the various proposals and prepare a set of recommendations to be considered when the legislature is back in session.
The five options from Florida Tax Watch will likely serve as a key reference point in these discussions, framing the debate around the scope, speed, and consequences of property tax reform in the Sunshine State. The final proposals will need to navigate the complex balance between taxpayer relief and the financial stability of Florida's local communities.
