Why Florida Can't Afford to Cut Property Taxes Completely

Governor Ron DeSantis recently suggested the possibility of eliminating property taxes in Florida. While this may sound appealing at first glance, the reality of such a move is far more complicated and ultimately unrealistic. Property taxes serve as the backbone of funding for essential services that all Floridians rely on, including public schools, police and fire departments, and parks and recreation facilities. Without property tax revenue, maintaining these critical services would require drastic alternative measures, such as doubling the state’s sales tax to an unthinkable 12%—a shift that has virtually no chance of securing the necessary 60% voter approval to amend the state constitution.

Local Governments Depend on Private Investors

Currently, Florida collects approximately $42.7 billion from property taxes, with about $1.7 billion becoming delinquent each year. When property owners fall behind on their taxes, local governments depend on private investors to fill the funding gap through a process known as tax certificate auctions. This system ensures that vital community services continue uninterrupted, even when some taxpayers are unable to meet their obligations. Without this system, local governments would face significant financial shortfalls, leading to either service cuts or increased financial burdens on other taxpayers.

While eliminating property taxes altogether is not a feasible solution, Governor DeSantis does raise a valid point about the need to reevaluate property tax exemptions. Many Floridians, particularly seniors, veterans, and low-income homeowners, could benefit from expanded exemptions that reduce their tax burden. Adjusting these exemptions in a responsible manner would provide relief to those who need it most while preserving the essential funding structure that supports our communities.

Florida’s tax system is already one of the most attractive in the nation, with no state income tax and a relatively low overall tax burden compared to other states. The key to maintaining our economic prosperity lies in refining our tax policies—not in dismantling the system that keeps our schools open, our streets safe, and our public spaces vibrant.

Continuing the Discussion

As we continue this discussion, it is crucial that Floridians understand the trade-offs involved. Doubling the sales tax to 12% would disproportionately impact lower-income residents and deter tourism, which is a major driver of our economy. Instead of chasing an unrealistic goal of eliminating property taxes, we should focus on optimizing exemptions and ensuring that tax policies remain fair, effective, and sustainable.