DeSantis wants to end most property taxes, calls special session for Nov. ballot question

Gov. Ron DeSantis on Wednesday called for the state to eventually phase out property taxes on homesteaded homes, starting by asking voters in a November ballot referendum to raise the homestead exemption to $250,000.

“That’s the best way that we can make a meaningful difference in the lives of people in trying to make ends meet,” DeSantis said during a Wednesday morning press conference at a Tampa Bay hotel. He stood behind a sign that read “Save Our Homes.”

How would local governments pay for services, then? According to DeSantis, they could soak the rich. “If some billionaire from Brazil is buying properties, tax ‘em,” the governor said.

To begin tackling the issue, DeSantis said he has called a special session of the Florida Legislature to start Monday in Tallahassee. The governor needs 60% of the legislature to approve placing the proposal on the statewide ballot for the Nov. 3 general election. The ballot question would then require approval by 60% of voters.

The Legislature also would be required during the session to set up a schedule on when the state would further reduce the homestead exemption to $500,000 and eventually reach a full exemption.

State Senate President Ben Albritton said in a memorandum released after DeSantis’ announcement that he “commends” the Governor for “starting what has been a robust discussion on property tax relief” and that he looks forward to next week’s special session.

“I can’t think of a more meaningful way to celebrate America’s 250 than the passage of $250,000 in tax relief for every Florida homeowner,” according to Albritton’s memo. “I believe this amendment will provide meaningful relief for Florida families.”

DeSantis said he proposed doing a step-by-step approach, rather than eliminating property taxes entirely on homesteaded homes all at once.

“I would do it full turkey, straight up. But I don’t think that’s something we would get the support in the Legislature,” DeSantis said. “And I don’t know it would necessarily pass with voters, if you did it that way.”
The percentage of homeowners who DeSantis said would be affected, however, did not match up with numbers from the state Office of Economic and Demographic Research.

DeSantis claimed the $250,000 exemption would eliminate property taxes for 60% of homesteaded homeowners and the $500,000 limit would eliminate them for 92% of homesteaded homeowners.

But the EDR states that only 47% of homesteaded properties in Florida are valued at $250,000 or less. In addition, only between 75 and 80% of homesteaded properties are valued at up to $500,000,

Currently, an estimated 5.1 million taxpayers have homestead exemptions on their primary residence that give them a break on their taxes and limits future increases, according to the state Department of Revenue.
Cities and counties use property taxes to pay for police, fire and other municipal services.

Seminole County Commissioner Lee Constantine said Seminole has long been fiscally conservative and the drop in revenue would impact every resident.
“Clearly it’s going to be very difficult for us to provide basic services that provide the quality of life for our citizens,” he said.

But DeSantis said local governments can use revenue from non-homesteaded properties to pay for schools, police, fire “and the core services that we all agree on.”
“You’re going to be able to do it,” DeSantis said on what he would tell local government officials who complain about the tax reduction. “They’re still getting a lot of money.”

DeSantis added that he would urge the legislature to create a trust fund that would help rural counties without a large residential tax base to provide services. However, richer urban counties would not have a problem, DeSantis said.

“In Palm Beach, they’re sitting on a gold mine,” DeSantis said. “They’re [owners] there three months of the year, and they buy $25 million homes. So that should be your tax base.”