Florida Property Tax Plan Could Cut School Funding by $5 Billion, June 01

Governor Ron DeSantis called a special legislative session this week to push a sweeping property tax reform plan. The proposal would raise the homestead exemption to $150,000 starting January 2027, then jump to $250,000 in 2028, with full elimination by 2030. The Florida Policy Institute warns the plan could cost schools $5 billion annually and counties $4.8 billion, forcing difficult choices about funding police, fire, roads, and schools.

How the Proposal Works

DeSantis’ plan phases out property taxes on homesteaded properties in three steps. The homestead exemption rises from the current $50,000 to $150,000 in 2027, then to $250,000 in 2028, and eventually eliminates the tax entirely by 2030. The Governor’s Office launched a “Save Our Homes” tax calculator allowing residents to enter their address and see potential savings. The proposal requires 60% approval from both the state Senate and House to pass.

The Cost to Schools and Cities

The Florida Policy Institute released analysis showing the $250,000 exemption alone would cost school districts an average of $5 billion annually. If property taxes are fully eliminated by 2030, school funding losses would jump to $8.59 billion per year. Counties would lose an average of $4.8 billion annually under the $250,000 exemption, rising to $8.65 billion with full elimination. The think tank analysis projects these losses would force cuts to police, fire, roads, parks, libraries, and code enforcement.

Local Government Pushback

St. Petersburg city officials warned the plan could jeopardize the city’s ability to provide basic services. Council member Lisset Hanewicz noted the city could face a $70 million hit to its budget. Jacksonville auditors estimate the city could lose more than $300 million annually. Cities argue that eliminating a major revenue source does not eliminate the cost of providing those services. Hillsborough County is developing its own property tax estimator to show residents the full impact of competing proposals.

Political Challenges Ahead

The proposal faces significant hurdles. Voters rejected a $100,000 homestead exemption in 2018, suggesting skepticism about even smaller increases. The jump from $50,000 to $250,000 in just two years is aggressive compared to a more gradual phase-in approach. Some lawmakers argue the plan lacks a clear mechanism to replace lost revenue, making the 60% voter approval threshold difficult to reach. The special session runs through Wednesday in Tallahassee.

Final Thoughts

DeSantis’ property tax elimination plan offers homeowners relief but creates a $5 billion annual funding gap for Florida schools. Without a clear replacement revenue source, the proposal faces voter skepticism and local government opposition.

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