JACKSONVILLE, Fla. — Florida already has no income tax, but Governor Ron DeSantis is currently flirting with the idea of abolishing property taxes as well.
Tax watchdogs have argued local governments would stand to lose the most.
Property taxes are a vital source of revenue for local governments in Florida, bringing in $55 billion a year according to Florida TaxWatch.
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But now Governor DeSantis has come out in support of putting a constitutional amendment on the ballot to abolish property taxes altogether.
“You have to continue to pony up money to the government just for the courtesy of using your own property. We don’t tax like that in almost any other instance,” said DeSantis during a Monday press conference.
Here in Jacksonville, property taxes on a home valued at $350,000 would cost a homeowner about $6,200 a year.
Council Finance Chair Ron Salem (R-Group 2 At-Large) explained those revenues make up more than half of the city’s total budget and fund everything from law enforcement to the school district.
“It would be a tremendous hit,” said Salem.
Kurt Wenner with Florida TaxWatch explained property taxes have been on the rise.
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He said they’ve increased 39% over the last three years alone.
He noted the only other revenue source even remotely comparable to property tax is sales tax.
If property taxes were eliminated, he estimated sales taxes would likely have to more than double to make up the lost revenue, which would disproportionately impact lower-income Floridians.
“We do not have an income tax. Our wealth tax is a property tax. Everything else is on consumption. That tends to be regressive, meaning that people with lower incomes pay a higher percentage of their income on taxes,” said Wenner. “Replacing the property tax with sales tax would certainly make it more regressive.”
But the governor pushed back on the suggestion sales tax would have to be raised.
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In a post on social media, DeSantis said he would veto any effort to increase the state sales tax and suggested local governments could “reduce bloat” instead.
Salem said he believes more than anything else, the entire point of the debate over property taxes is meant to send a message to local governments to start tightening their purse strings.
“I just think that it’s a wake-up call for local government,” said Salem.
There are several bills dealing with property taxes already teed up for the upcoming legislative session.
Among them are a study on eliminating property taxes, increasing the homestead exemption, and changing how property taxes can be assessed.
It’s still to be seen if a full elimination proposal will be filed.
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