The property tax issue is rearing its head again in Florida, and this time, lawmakers may be serious about major reform. Property taxes are the dominant source of income for Florida’s local governments, generating more than $55 billion annually to fund schools, law enforcement, firefighting, and other essential services. Homeowners shoulder about one-third of the tax burden, with businesses paying the larger share.
What’s important to understand is that property taxes aren’t one-time costs. They’re annual obligations that function more like lease payments to the government than true ownership. Governor Ron DeSantis has questioned whether Florida taxpayers should continue to pay what he calls “perpetual rent” to the government on property they already own. That question is now making its way into the legislative process, and lawmakers are examining whether there’s a better way to fund local services without burdening property owners.
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Over the last decade, property tax collections in Florida have grown at more than double the rate of population growth and inflation combined, according to Florida TaxWatch. Some counties have seen modest increases—Washington County, for example, is up 35%. But others have exploded. Walton County is up 216%. This discrepancy underscores the lack of a consistent, fiscally responsible approach across the state.
Florida has earned a reputation for smart fiscal policy. That’s a reputation worth keeping, especially as lawmakers now consider how to balance the state’s responsibility to oversee local taxation while still allowing counties and cities to meet their obligations. Unlike sales tax or tourism-based bed taxes, which are tied to economic activity and voluntary spending, property taxes hit Floridians annually, regardless of how the economy is doing or how much income a resident or business is generating.
Earlier this year, the Florida Legislature began reviewing the property tax structure, and a Florida House committee recently held a hearing to begin shaping possible solutions. Several scenarios are being floated. One would phase out property taxes on homestead properties owned for more than 10 years. Another would eliminate property taxes for seniors who have owned their homes for at least a decade, while also reducing or phasing out taxes on other homestead properties. Some proposals maintain school taxes but cut others.
One approach would reduce assessed property values and force local governments to adopt the “rollback rate,” meaning they would only collect what they did the prior year, not more. Another idea would simply require governments to publicly notify taxpayers if they intend to raise tax rates above that rollback threshold—adding transparency to the process, but not mandating cuts.
Any reduction in property taxes will raise questions about how local governments will replace that revenue. Under our federalist system, local governments are tasked with many critical responsibilities, and if property tax revenues decline, other taxes may rise to fill the gap. That trade-off needs to be part of an honest public discussion.
The House committee’s work is ongoing. There’s no guarantee of legislative action, but the fact that this conversation is taking place at all signals that change could be on the horizon. Whether that’s a full repeal, a partial rollback, or increased transparency remains to be seen. What’s clear is that Florida’s business owners and property taxpayers are paying attention—and so should their elected representatives.
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