Is Gov. DeSantis’ Idea of Eliminating Property Taxes Workable?
Big Money
In Florida, the government relies heavily on property taxes to fund local governments, schools, and other services. The state’s 2024-25 fiscal year budget includes non-school property tax levies totaling $33.7 billion and school levies totaling $21.5 billion. To make up for the shortfall, the state could increase the sales tax, which is already 6% in Florida. An analysis by the left-leaning Florida Policy Institute estimated that if the state doubled its sales tax to 12%, it would generate around $40.2 billion.
Shortfall
Eliminating property taxes would require a significant source of revenue to replace the lost funds. Some possibilities include increasing the sales tax, slashing local government budgets, or cutting services. State Sen. Tina Polsky, a Democrat, is concerned that the idea of eliminating property taxes might be appealing, but it could lead to a regressive tax system that disproportionately affects lower-income individuals.
Unfair
DeSantis has argued that the concept of property taxes is unfair, suggesting that homeowners are simply paying rent to the government. However, others disagree, pointing out that property taxes are a way to fund local services and infrastructure. “Is it private property or not?” DeSantis asked. “Because if they can just keep taxing you when you own the home, own the land free and clear, and they’re just taxing you, then really you’re paying rent to the government. And, and I think a lot of people think that that’s wrong.”
Rising Values
DeSantis has also highlighted the issue of rising property values, suggesting that homeowners are being unfairly taxed on their increased property values. However, this is not the case. Under the Save Our Homes provision of the Florida Constitution, the taxable value of a homesteaded property can’t increase more than 3% a year, limiting the impact of rising property values on tax bills.
Timing
The DeSantis proposal comes as the governor faces new political challenges, including the decline of his influence in Tallahassee. With his presidential ambitions, DeSantis may be seeking to champion a bold initiative to secure his place in the Republican primary.
DOGE
DeSantis has also mentioned the Department of Government Efficiency (DOGE), a program established by former President Donald Trump to eliminate federal programs and reduce government spending. DeSantis has suggested that DOGE could help identify areas of inefficiency in local governments, making it easier to eliminate property taxes.
Conclusion
While eliminating property taxes may seem appealing, it is a complex issue that requires careful consideration of the potential consequences. The proposal would likely require significant changes to the state’s tax structure and could have a disproportionate impact on lower-income individuals. As the debate continues, it is essential to consider the potential effects on local governments, schools, and individuals.
FAQs
Q: How would the state make up for the lost revenue from eliminating property taxes?
A: One possible solution is to increase the sales tax, which is already 6% in Florida.
Q: Would eliminating property taxes lead to a regressive tax system?
A: Yes, as lower-income individuals would be disproportionately affected by the increased sales tax.
Q: Is the concept of property taxes unfair?
A: The concept of property taxes is a way to fund local services and infrastructure, and many argue that it is not unfair.
Q: Would the Save Our Homes provision of the Florida Constitution help mitigate the impact of rising property values on tax bills?
A: Yes, the provision limits the increase in taxable value to 3% per year, protecting homeowners from excessive tax increases.
