Tax overhaul is back: DeSantis signals summer session, phase-out strategy

A divisive proposal to nix property taxes on primary homes in Florida is back in play after failing to gain approval during the regular legislative session.

Republican Gov. Ron DeSantis, who is term-limited this year, signaled he will bring back the initiative in a summer special session and that the bill would call for a phase-out reduction in levies instead of an outright elimination from the get-go, Florida Politics reported.

“Our goal would be: Homestead properties would be exempt from property tax,” DeSantis said in Palm Beach, adding he will work with the legislature after this month. “You still get a lot of revenue, probably have to phase it in, do some other things, make it work. I’ve even said we’ll give some of our surplus to help with the transition.”

Whether Florida has the budget cushion to help cover any shortfalls is uncertain.The state’s long-range financial outlook presented last year projected financial gaps starting in the fiscal year 2027-28.

The tax reform item is popping back up after DeSantis first floated it last year.

During its regular session, the Florida House this year passed a bill that would entirely nix all non-school property taxes on homesteads, while mandating local governments maintain the same funding levels for police, firefighters and other first responders. The measure was a more aggressive version of the other bills this session, which put forth various phase out approaches, including steadily increasing the homestead exemption amount over several years until taxes are entirely eliminated.

The Senate didn’t pick up the measure during the special session.

Any property tax reform would require 60 percent approval in both chambers, as well as 60 percent approval in a referendum from voters statewide to implement it as a constitutional amendment.

If the bill that passed the House this year had passed, it could have resulted in a $13.3 billion annual budget hit to counties and municipalities, according to Florida’s Revenue Estimating Conference.

DeSantis has said he’s working with lawmakers to carve out language for the bill that’s to come in the summer session, though the governor and House Speaker Florida House Speaker Daniel Perez, also a Republican, have clashed in recent years over several top legislative items.

–– Lidia Dinkova

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