Executive Summary
Florida's property tax system is at a critical juncture, with total levies surging by 108% over the last decade, far exceeding the combined rate of population growth and inflation. This rapid increase, generating $55 billion in 2024 for local governments, has intensified the financial strain on homeowners and raised fundamental questions about the nature of property ownership, which currently resembles a form of "perpetual rent" to the government. This report from Florida TaxWatch analyzes the current landscape and explores five distinct options for reform, ranging from the complete elimination of property taxes for homeowners to more immediate statutory changes aimed at increasing transparency and accountability.
The core issue addressed is the mounting property tax burden, which increasingly makes homeownership—the "American Dream"—less attainable for many Floridians. In response, this report details several potential reforms:
Reform Options
- Phased elimination for homeowners: A gradual, multi-year phase-out of property taxes on homestead properties to provide predictability for local governments as they adapt to reduced revenue.
- Prioritizing seniors: An accelerated elimination of property taxes for senior citizens, offering immediate relief to those on fixed incomes.
- Excluding school taxes: Eliminate all non-school property taxes for homeowners, thereby protecting the primary funding source for public education.
- Across-the-board tax reduction: A straightforward percentage-based reduction in the assessed value of properties to deliver immediate and broad-based tax relief.
- Immediate statutory reforms: Legislative changes for the 2026 session focused on enhancing transparency, such as making the rolled-back tax rate the default and strengthening disclosure requirements on tax notices.
Any significant reform must address several key considerations, including the potential for tax shifts to non-homestead properties, the fiscal stability of counties with limited revenue sources, and the administrative complexities of implementing a new system. The report concludes that a piecemeal approach is insufficient. Instead, it calls for a comprehensive, strategic reform that engages both state and local governments. The ultimate goal is to redefine property ownership in Florida, making it more secure and attainable while ensuring the continued delivery of essential public services.