Floridians need a property tax break, but here’s why DeSantis’ proposal is dangerous | Opinion - Insurance News | InsuranceNewsNet

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March 13, 2025 Property and Casualty News
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Floridians need a property tax break, but here’s why DeSantis’ proposal is dangerous | Opinion

the Miami Herald Editorial Board, Miami HeraldMiami Herald

There is no doubt that Floridians are struggling to afford living in the state, especially in South Florida. Gov. Ron DeSantis’ solution is to eliminate property taxes, and he’s pushing the Legislature to put that idea up for voter approval.

Slashing taxes is a popular political stance for a governor trying to remain relevant. It also allows him to avoid tackling the bigger issue killing affordability in Florida: the exorbitant cost of homeowners’ insurance and housing.

There are already programs that limit what many homeowners pay in property taxes. That includes the state’s homestead exemptions and Save Our Homes, a constitutional amendment that caps at 3% the annual increase of the assessed value of homesteaded properties. A better approach would be to expand these programs or look for ways to provide more relief for middle- and working-class homeowners who pay a greater share of their income toward taxes.

The irony of DeSantis’ proposal is that it would impact a major funding source for the parts of government that people tend to value the most: police and fire rescue, public education, public libraries, parks, local infrastructure projects and other services that affect people directly.

In the case of Florida’s public schools, 50% to 60% of their budget comes from property taxes, according to an analysis by Florida Policy Institute, a progressive think tank. Property taxes also account for 37% of Miami-Dade County’s 2024-25 budget, the largest portion of which goes toward public safety and services like water, sewer and waste management, a county document shows.

If a community library or school were to close down, or if City Hall stopped addressing the concerns of its constituents, it’s local officials who would bear the brunt of public outcry, not the governor or state lawmakers.

Knee-capping local communities may be exactly what DeSantis wants.

To some extent, he is right that these jurisdictions need pressure to tighten their belts after their revenues ballooned thanks to recent rising property values. But his proposal might make local governments unable to perform basic functions — and concentrate more power at the state level, as DeSantis and lawmakers have already done in recent years — rather than correct any inefficiencies.

Even more concerning is that DeSantis has not explained how or if he would like to make up for the estimated $55 billion tax revenue shortfall that his proposal would create, according to the Miami Herald.

During a recent legislative committee hearing, senators from both parties asked staff members where that money would come from.

“We don’t know,” Azhar Khan, staff director of the Senate Finance and Tax Committee, answered, the Sun Sentinel reported.

One bad solution would be raising sales taxes.

The state’s 6% tax would do little to raise enough revenue, Florida Policy Institute analyst Esteban Leonardo Santis told the Herald Editorial Board. Counties can also levy additional sales taxes on their own but to a certain extent — Miami-Dade’s is 7%.

Doubling the state’s general sales tax rate would generate $40.2 billion, assuming consumer demand remains stable, according to Santis. But, at 12%, Florida’s sales tax would become the highest in the nation and would disproportionately hurt households with low to moderate incomes that spend a larger share of their income on taxable goods and services compared to wealthier ones.

Sen. Jonathan Martin, R-Fort Myers, has filed a bill directing the state to study the impact of eliminating property taxes and, among other things, to look into the possibility of replacing them with sales taxes. DeSantis, on the other hand, has ruled out that possibility. However, he would no longer be governor by the time voters are able to approve his proposal. At the earliest, the measure would appear on the ballot as a constitutional amendment proposal in 2026, the same year DeSantis’ successor will be elected. Constitutional amendments need at least 60% voter support for approval.

Perhaps the goal is to let local government languish similar to what President Donald Trump is doing at the federal level. It’s easy to rally against obscure government spending in Washington, D.C., but it’s much harder to make the argument that our neighborhoods don’t need proper maintenance and services.

Click here to send the letter.

©2025 Miami Herald. Visit miamiherald.com. Distributed by Tribune Content Agency, LLC.

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