Gov. DeSantis’ idea to eliminate property taxes may come with risks

DeSantis floats eliminating property taxes

FOX 13's Evan Axelbank reports on the potential economic impacts of eliminating property taxes in Florida, which Governor Ron DeSantis backed during an event in downtown Tampa this week.

TAMPA, Fla. - Governor Ron DeSantis says he backs the idea of banning local governments from collecting property taxes.

Gov. DeSantis backing the idea of banning local governments from collecting property taxes in downtown Tampa on Monday.

He made the comments on social media first, then reiterated them during a stop in downtown Tampa on Monday.

"Do you think it's fine that you buy property, you buy a home, you own it outright, free and clear, and yet you have to continue to pony up money to the government just for the courtesy of using your own property?" said DeSantis.

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Dig deeper:

According to a study by the Florida Policy Institute, local governments in Florida collect $42.7 billion in property taxes annually, or about $2,000 per person.

Graphic showing the amount of money generated from property taxes in Florida.

Property taxes generate just under a fifth of the revenue for local governments and half of the revenue for school districts.

The report's author, Dr. Esteban Santis says that property taxes finance so much at the local level that without them, the state would have to double its sales tax rate from 6% to 12% to maintain local services.

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According to Santis, removing property taxes would not only hit lower-income families hardest but also be a less reliable source of revenue because consumer demand ebbs and flows.

"It's going to make it harder to forecast and plan for the school districts in particular," Santis said.

The other side:

Tampa City Councilor Luis Viera says the state is wading into treacherous territory.

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"This is something that we have to take seriously and begin to speak out on," said Viera.

He points out that local governments, like the City of Tampa, use property taxes to fund police officers and firefighters.

FILE: Tampa police.

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Promising lower taxes is a favorite pastime of politicians, but so is promising strong public safety, according to Viera.

"I'm a public official who's always very proud to support our police," said Viera. "And this is a time where you'll take hits for wanting to fund the police in a proper way, because that's what property taxes do," said Viera.

What's next:

DeSantis posted that a constitutional amendment would be needed to eliminate, reform, or lower property taxes, but the boldest amendment should be put on the ballot with a chance of reaching 60% public support.

DeSantis' social media post saying that a constitutional amendment would be needed to ban local governments from collecting property taxes.

"People do need relief," said DeSantis. "The homestead exemption is not enough for people. Their assessments are going up. They're having to pay more, and we don't we don't want to see that."

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One state senator has proposed a bill that would analyze different options for eliminating or making dramatic changes to property taxes.

The Source: FOX 13's Evan Axelbank collected the information in this story.

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