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Proposal to eliminate Florida property taxes, sparks concerns
Gov. Ron DeSantis has proposed eliminating property taxes in Florida, a move that would significantly impact local governments. Property taxes currently fund essential services such as police, fire departments, public schools, and infrastructure. Local officials warn that eliminating this revenue stream could leave cities and counties scrambling to cover costs.
OVIEDO, Fla. - Florida Gov. Ron DeSantis endorsed the idea of abolishing property taxes throughout the Sunshine State, but explained that it would require a constitutional amendment.
‘We use 100% of our property taxes for public safety’
What we know:
Gov. Ron DeSantis has proposed eliminating property taxes in Florida, a move that would significantly impact local governments. Property taxes currently fund essential services such as police, fire departments, public schools, and infrastructure. Local officials warn that eliminating this revenue stream could leave cities and counties scrambling to cover costs.
What we don't know:
It remains unclear how the state would replace the $40 billion in lost revenue from property taxes. One possibility is a sharp increase in sales tax, which experts estimate would need to double to offset the loss. There is also uncertainty about whether voters would support the required constitutional amendment to eliminate property taxes.
Big picture view:
While eliminating property taxes could benefit homeowners, financial analysts warn it could disproportionately affect lower- and middle-income Floridians. Sales taxes are paid by everyone, meaning the financial burden may shift from property owners to all consumers. Meanwhile, Florida's affordability crisis continues, with home prices rising over 30% in five years, while wages have only increased by 10%.
What they're saying:
Oviedo Mayor Megan Sladek emphasized the crucial role property taxes play in the day-to-day function of the city.
"We pay over $22 million to sustain our police and fire departments, and that’s all our property taxes," explained Mayor Sladek. "We use 100% of our property taxes for public safety."
Policy analyst Esteban Santis voiced concerns about a potential sales tax hike.
"If you’re in the top 1%, that’s going to be great, but if you are your everyday Floridian, they’re not going to see too many benefits from this policy," Santis said. "And if we do double the sales tax, they’re just going to see the cost of goods jump up at the cash register."
DeSantis acknowledged the challenge of eliminating property taxes, stating,
"We’d need to do a constitutional amendment [ which requires 60% of voters to approve] to eliminate them [which I would support] or even to reform/lower them," DeSantis noted.
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The Source: This story was written based on information shared by Florida Gov. Ron DeSantis, Oviedo Mayor Megan Sladek, and policy analyst Esteban Santis.