Florida House Advances Property Tax Cut Amendments Amid Local Funding Concerns

The Florida House's Republican-led State Affairs Committee advanced four proposed constitutional amendments aimed at reducing property taxes for homeowners. One key proposal, HJR 201, seeks to eliminate non-school homestead property taxes entirely, potentially cutting local government revenues by $14.1 billion in the first year. This reduction raises concerns about funding for essential local services including schools, infrastructure, emergency services, and recreation. Local officials have warned that such cuts could force significant service reductions and shift tax burdens to rental property and business owners. These amendments are part of a broader package related to property tax reform that Florida Governor Ron DeSantis has prioritized for the 2026 ballot, although he disagrees with the House's approach, favoring a single ballot proposal over multiple measures. The State Affairs Committee has only advanced four of several proposed amendments, with the remainder pending further consideration. This situation reflects ongoing negotiations and differing strategies between the House and Senate on property tax reforms. In addition to the elimination of non-school homestead taxes, the approved measures include tax reductions targeted to homeowners aged 65 and older, an additional homestead exemption for insured properties, and provisions to allow full transfer of Save Our Homes benefits to new residences. Save Our Homes is an existing cap limiting increases in taxable value of homesteaded properties to 3 percent annually. These policies aim to provide targeted relief to specific homeowner demographics and support property insurance incentives. Economic analyses suggest that removing homestead property taxes could increase Florida property values by 7 to 9 percent, benefiting current homeowners but potentially hampering first-time buyers' market entry. Critics caution that such proposals, if enacted, could lead to significant local funding shortfalls with broader implications for public services and fiscal stability. For these amendments to be enacted, they must first pass additional House committees and receive approval from at least 60 percent of Florida voters in 2026. The legislative process and stakeholder discussions remain active, with attention focused on balancing property tax relief with sustaining local government functions essential to community well-being.