Here’s how Gov. Ron DeSantis plans to replace property taxes in Florida

TALLAHASSEE, Fla. – Property tax cuts are one of the biggest themes of this year’s Legislative session, with two new amendments making headway through the Legislature last week.

But it’s left many critics wondering: how do we replace the revenue?

Any cuts made can have a huge impact on local governments, which use the funding for services like law enforcement, fire departments and public schools.

Florida Gov. Ron DeSantis took to Fox & Friends last month to address some of these concerns, bringing up his proposal for how these funds can be replaced.

STATE FUND REPLACEMENTS

While attending the Fox program, DeSantis lauded the state’s budget surpluses, claiming the excess funds could be used to help any counties struggling with their finances.

As a result, he argued, the excess state funding could help to offset any losses from property tax cuts.

“We have 32 fiscally constrained counties. You know, Miami-Dade, Palm Beach, these are the powerhouses,” he said. “I’m putting in my budget the revenue to totally backfill every one of those rural counties, so they’re not going to miss a single thing. I’ve got a big surplus; why would I not do that?”

CUTTING HOMESTEADS ONLY

DeSantis admitted that he didn’t think property taxes could be cut wholesale without having negative consequences for schools, though he said that wouldn’t be much of an issue.

That’s because the governor is primarily pushing for tax cuts on primary homesteads, which aren’t the biggest source of property tax revenue.

[BELOW: News 6 speaks with CFO Blaise Ingoglia about property tax impacts]

“That’s a fraction of the overall property tax revenue,” he stated. “About 70% is non-homestead, non-residence, and then commercial. So we’re in a unique situation; so much of our taxes are paid by people that visit.”

DeSantis’ proposal here matches several amendments that are being pushed by House lawmakers, which aim to increase homestead exemptions for non-school property taxes.

EXPOSING LOCAL ‘WASTE’

Yet another tactic DeSantis is pursuing is exposing “waste, fraud and abuse” in local government spending across the state.

More specifically, the governor’s DOGE audit task force has been combing through the finances of cities and counties throughout Florida to determine any unnecessary costs these governments can cut.

[BELOW: Florida CFO Ingoglia discusses “wasteful spending” in news conference]

The goal, according to figures like DeSantis and CFO Blaise Ingoglia, is to demonstrate to voters that homestead property taxes aren’t necessary for all of these governments to function effectively.

That’s because property taxes are local issues, so any changes at the state level would require an amendment to the Florida constitution — a change that would need to garner at least 60% support from voters in the next general election.

WHAT ARE THE PROPOSALS SO FAR?

Aside from DeSantis’ push for eliminating homestead taxes more generally, House lawmakers have put forth a variety of proposed amendments that would slash property taxes across the state.

They are as follows:

HJR 201 — Eliminating Property Taxes

House Joint Resolution 201 would establish a homestead exemption for all non-school property taxes.

In addition, the amendment would prohibit local governments from reducing their law enforcement funding.

HJR 203 — Phased-Out Property Taxes

House Joint Resolution 203 would increase the homestead exemption for non-school property taxes by $100,000 per year for 10 years.

Afterward, the amendment would make all homestead properties exempt from non-school property taxes beginning on Jan. 1, 2037.

In addition, the amendment would prohibit local governments from reducing their law enforcement funding.

HJR 205 — Property Tax Exemptions (Seniors)

House Joint Resolution 205 would exempt residents ages 65 and over from paying non-school taxes on their homes.

In addition, the amendment would prohibit local governments from reducing their law enforcement funding.

HJR 207 — Property Tax Exemptions (25%)

House Joint Resolution 207 would apply a homestead exemption for non-school property taxes equal to 25% of the remaining assessed value after applying existing exemptions.

In addition, the amendment would prohibit local governments from reducing their law enforcement funding.

HJR 209 — Property Insurance Relief

House Joint Resolution 209 increases homestead exemptions for non-school property taxes by $200,000.

However, this only applies if the property is subject to a comprehensive insurance policy.

In addition, the amendment would prohibit local governments from reducing their law enforcement funding.

HJR 211 — Accrued Tax Benefits

House Joint Resolution 211 would allow the full value of any accrued (rather than the current $500,000 limit) Save Our Homes benefit to be transferred to a new homestead for non-school levies.

In addition, the amendment would prohibit local governments from reducing their law enforcement funding.

HJR 213 — Assessment Limits

House Joint Resolution 213 would limit homestead assessment increases for non-school property taxes to once every three years.

These increases may be capped at 3% or the change of inflation during this time, whichever is lower.

The proposal also limits assessment increases for non-homestead properties to 15% once every three years, rather than 10%.

In addition, the amendment would prohibit local governments from reducing their law enforcement and first responder funding.

HJR 787 — Local Taxing Ban

House Joint Resolution 787 would take away the ability of counties and school districts to levy property taxes.

If approved, another bill associated with this proposal — HB 791 — would take effect at the same time as HJR 787.

HB 791 imposes a 5% transaction fee for all real estate sales, which would help counties make up for any funding lost due to property tax cuts.

HJR 793 — Housing Inheritance

House Joint Resolution 793 provides that a transfer of homestead property by inheritance is not considered a change of ownership when it comes to homestead property assessment.

If approved, another bill associated with this proposal — HB 795 — would take effect at the same time as HJR 787.

HB 795 clarifies that upon the death of a homeowner, this transfer is considered between the owner and another who makes the property his/her homestead within one year.

HJR 903 — Non-Homestead Valuations

House Joint Resolution 903 reduces the maximum percentage that the assessed value of non-homestead properties may be increased annually, from 10% to 3%.

HJR 1411 — Lowered Property Values

House Joint Resolution 1411 prohibits any additional increases in the assessed value of properties in the state if the just valuation of such a property has gone down since the previous assessment.

This refers to homestead and non-homestead properties that are subject to the current 3% and 10% assessment limitations, respectively.