Florida House Advances Property Tax Cut Amendments, Raising Local Funding Concerns

The Florida House State Affairs Committee approved four proposed constitutional amendments designed to reduce property taxes for homeowners. The leading proposal, HJR 201, would eliminate non-school homestead property taxes, potentially cutting local government revenue by $14.1 billion in the first year. Supporters argue that despite this cut, spending remains above 2020 levels, indicating fiscal challenges rather than overspending. These measures are part of a broader package released in October by House leadership, aimed at placing property-tax cuts on the 2026 ballot, aligned with Governor Ron DeSantis's priority. However, the Governor has called for a singular proposal, criticizing the multiple House proposals as confusing. Legislative discussions continue as the Senate has yet to release its tax proposals. Local governments warn that such significant revenue reductions could impact funding for essential services including schools, infrastructure, emergency services, and recreation programs, potentially leading to cuts in law enforcement and maintenance. Critics also highlight the likelihood of cost-shifting to rental and business property owners. Economic analysis from Realtor.com suggests that eliminating homestead property taxes could increase Florida property values by 7 to 9 percent, benefiting existing owners but possibly making market entry more difficult for first-time buyers. Additional proposals include tax exemptions for seniors, additional homestead exemptions for insured properties, and the ability to transfer 'Save Our Homes' benefits to new homes. The 'Save Our Homes' provision caps taxable value increases at 3 percent annually; one proposed amendment would allow homeowners to transfer these benefits fully when purchasing new homes. The legislative process for these proposals includes approval by the House Ways & Means Committee and voter approval of at least 60 percent on the 2026 ballot. Other proposed amendments not advanced in the committee include phased reductions of homestead taxes over 10 years, increased homestead exemptions, tighter caps on taxable value increases, and requiring supermajority votes for local tax rate increases. The evolving legislative landscape reflects ongoing negotiations around property tax policy and local funding balance in Florida.