Introduction to Property Tax Proposal
A House proposal that would ask voters to phase out non-school homestead property taxes moved forward Thursday, as lawmakers and Gov. Ron DeSantis try to reach agreement on a November ballot measure.
The Republican-controlled House State Affairs Committee voted along party lines to back a proposed constitutional amendment (HJR 203) that would annually increase the homestead exemption by $100,000 over the next decade, with a full exemption for non-school taxes in 2037.
Proposal Details
The proposal, which would require approval by 60% of voters, also would seek to prevent local funding cuts for law enforcement, firefighters and other first responders. While cities and counties have raised concerns about potentially reduced funding for services, Rep. Monique Miller, R-Palm Bay, said local officials need to consider sharing services and “to live within their means.”
Concerns and Criticisms
“By reducing taxes over years, we are giving local governments time to adjust to new revenue levels, and empowering them to find responsible solutions,” said Miller, the sponsor of the proposal. But cities and counties warned about the proposal, which would lead to billions of dollars a year in lost property-tax revenue. “This is truly not tax relief,” Charles Chapman, legislative consultant for the Florida League of Cities, told the committee. “It’ll end up becoming a tax shift, where costs do not disappear. The burden will shift to businesses, the renters, because fees, assessments, higher non-homestead millage rates could replace the homestead tax break.”
Democratic Concerns
Democrats also raised concerns about a loss of local services and costs being shifted. “Governance requires us to think through consequences, not just concepts,” said Rep. RaShon Young, D-Orlando.
Governor’s Priority
Gov. Ron DeSantis has made a priority of putting a proposed constitutional amendment on the ballot to slash property taxes. The House in October released eight proposals, but Speaker Daniel Perez, R-Miami, said this week he expects a single proposal to go on the ballot. “I fully expect us to have something on the ballot for our constituents to eventually vote on,” Perez told reporters. “I do expect it to be one proposal for them to vote on.”
Other Proposals
Perez added that it is “somewhat still up in the air” what final proposal will emerge. “We don’t have a position from our friends across the hall (in the Senate) or the executive branch on what details they are proposing for our constituents to eventually vote on,” he said. “We’ve taken the initiative.” A proposal (HJR 209) that is ready to go to the full House would increase the homestead exemption for residents who have property insurance.
Current Exemptions
Currently, homeowners can qualify for homestead exemptions from local-government and school-district taxes on the first $25,000 of the assessed values of their properties and from local-government taxes on the values between $50,000 and $75,000. Save Our Homes places a 3% cap on annual increases in taxable values of homesteaded property.
Potential Special Session
DeSantis on Wednesday suggested a special legislative session might be needed to resolve the property-tax issue, as “I don’t know that we’re going to have something passed in the regular session.” “You have until pretty much, I think, Aug. 1, to be able to get that done,” DeSantis said during an appearance at a Florida Chamber of Commerce “fly-in” event in Tallahassee. “I think it’ll get done before then, but we’re working with folks in both chambers (the House and Senate) on that.”
Conclusion
The proposal to phase out non-school homestead property taxes is a complex issue with various concerns and criticisms. While the goal is to provide tax relief to homeowners, cities and counties are worried about the potential loss of revenue and the impact on local services. The fate of the proposal remains uncertain, and it is unclear what the final version will look like.
FAQs
- What is the proposed constitutional amendment (HJR 203)?
The proposed constitutional amendment (HJR 203) would annually increase the homestead exemption by $100,000 over the next decade, with a full exemption for non-school taxes in 2037. - How would the proposal affect local governments?
The proposal would lead to billions of dollars a year in lost property-tax revenue for local governments, potentially affecting their ability to fund services. - What is the current homestead exemption in Florida?
Homeowners can currently qualify for homestead exemptions from local-government and school-district taxes on the first $25,000 of the assessed values of their properties and from local-government taxes on the values between $50,000 and $75,000. - What is the deadline for resolving the property-tax issue?
The deadline for resolving the property-tax issue is August 1, but a special legislative session might be needed to reach an agreement.
