Soaring home coasts are driving Florida legislators to propose radical solutions.
Median home prices in metros across the Sunshine State have surged in recent years alongside home-insurance premiums. In light of the crushing financial pressures on Floridians, lawmakers are now debating the reduction or total elimination of property taxes, the Wall Street Journal reported.
There is no US state that has successfully eliminated property taxes, although North Dakota tried and failed to become the first with a ballot measure in November. Florida is among eight states without individual income taxes, however, making it especially attractive to retirees on fixed incomes. The incentive has also brought companies — and their billionaire owners — to the growing state.
But the state’s housing market hasn’t been so sunny lately, as skyrocketing property values, condo fees and insurance premiums are pinching some Floridians’ wallets. Despite success in the state’s high-end luxury market, the number of unsold homes in Florida rose almost 23% year-over-year in January.
Increasingly property values hits fixed-income households, like retirees, particularly hard. Redfin data cited by the Journal tracked median home prices in metros like Miami, Orlando and Tampa increasing several times over since 2012.
Now, some Florida lawmakers are angling to address the issue by taking aim at the state’s property tax, from a full repeal to smaller adjustments. The actual likelihood of such radical measures coming to fruition is unclear, but the issue has been front and center this legislative session, the Journal reported.
These measures include Republican Gov. Ron DeSantis’s plan to put a constitutional amendment abolishing or reducing property taxes on 2026 ballots, as well as State Sen. Jonathan Martin’s bill requiring a study on eliminating property taxes by October. Two bills aimed at a reduction in property taxes were introduced by State Rep. Ryan Chamberlin.
Critics of the proposals say that eliminating property taxes would force cuts to essential services and significantly hike sales taxes. Property taxes are a dominant source used by local governments for public services like schools, fire departments and libraries. In Florida, property taxes make up a significant slice of county, municipal and school district revenues, the Journal reported.
Politicians like DeSantis and Chamberlin have suggested various remedies to avoid the loss of revenue, including reducing waste in local government and increasing sales taxes.
Although the elimination of property tax could help keep Floridians on fixed incomes in their home, it might also hurt their day-to-day spending. The Journal cited a study by the Florida Policy Institute that estimated the state’s sales tax would need to be doubled to 12% in order to replace property tax revenues.
Other states are also considering reducing or eliminating property taxes, the Journal reported, including Wyoming, Kansas and Montana.
https://nypost.com/2025/03/20/real-estate/will-florida-ditch-property-taxes-as-home-prices-surge/
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