Governor Ron DeSantis has called the state legislature back to Tallahassee for a special session to overhaul property taxes. The session will begin Monday and DeSantis wants an increase in the homestead exemption on the November ballot.
The Governor wants to see the Homestead Exemption increase from $50,000 to $250,000 immediately.
It’s clear, DeSantis believes local governments are over-taxing Florida homeowners and can cut ther budgets. He pointed out that property tax revenue collected by local governments has nearly doubled in the past seven years (from $32 billion to $60 billion) and is expected to reach a $83 billion by 2032. He said, “Florida homeowners need relief. Now is the time to stand up for taxpayers, enact a historic reform, and save the home of every Floridian.”
On Wednesday the Governor outlined his Save Our Homes from Excessive Property Taxes plan that will eventually eliminate taxes on homesteads. Of course, the legislature could come up with a plan of its own or do nothing at all after the special session. It’s very likely some plan for property tax relief will go before the voters in November.
Property taxes are the largest source of income local governments use to provide services to their residents. If the Homestead Exemption is raised from $50,000 to $250,000 next year, municipalities will have to scramble to figure out where to make cuts and what services to reduce or eliminate.
Here’s what the Governor proposes:
- Exempt Homestead Properties From Taxation.
Exempts the first $250,000 of a homestead’s value from taxation and requiring, through law, a schedule for full elimination.
- Ensure Funding For Core Services.
Requires local governments to use remaining property taxes solely for core public needs including public safety, education and schools, infrastructure, and natural resources.
- Protect Small Businesses.
Limits future property tax assessments on businesses and creates a more stable tax environment for local businesses.
- Ensure Fairness For Florida Residents.
Requires any person who establishes Florida residency after January 1, 2027, to maintain Florida residency for up to five years prior to receiving the increased homestead exemption.
- Create A State Trust Fund To Assist With Core Local Services.
Establishes a trust fund to provide grants to local governments to assist with the continuation of core local services.
Read The Governor’s proclamation HERE.
I am a little concerned about the State Trust Fund portion of the proposal. Seems like DeSantis is admitting that local governments cannot afford the proposed tax cuts, but not to worry, Big Brother will take care of it. Woe to any local governments that happen to disagree with any of the State’s policies. Withholding funds will get them back in line.
Yep.
How will the trust be funded? How many new employees will be required to administer it? Will municipalities need a new employee to manage grant applications?
Not to mention it simply adds another layer of (unnecessary IMHO) bureaucracy.
And nowhere do I see that municipalities will cut spending — so this merely shifts how the money is collected, not the amounts collected.
Like nearly all ideas since time immemorial from politicians of all stripes, the “headline” sounds appealing but the “fine print” is always omitted.
She’s back……