At first House talk on property tax relief, not all ideas win praise; one is laughed out of the room

Members of a new House Select Committee on Property Taxes convened for their first meeting to discuss five proposals Speaker Daniel Perez proffered as a “springboard” for talks on delivering relief to Florida homeowners.

Some were more popular than others. One was summarily rejected as “a really bad idea.”

The panel, led by Chairs Vicki Lopez and Toby Overdorf, first went over the key concepts, definitions and structures by which property taxes are administered in the state.

Overdorf, a Palm City Republican, said when it comes to finding solutions that fit state and local demands, “everything is on the table.”

He noted a sharp rise in property tax rates in recent years. In 2015, collections by counties, municipalities, school districts and certain independent special districts were about $28.3 billion.

By 2020, however, they had increased to $37.7 billion. Since then, they grew by another $17.5 billion.

“Collections do not have to increase just because property values have skyrocketed,” he said, conceding that property values had risen sharply. “This is a choice by the taxing authorities when they set their millage rates.”

The Florida Constitution prohibits a state property tax but authorizes counties, municipalities, school districts and certain independent special districts to levy them. Accordingly, any change to that model and the ability of local governments to levy property taxes requires a constitutional amendment by statewide referendum or a county-level vote on the matter.

The five proposals take that into consideration to varying effects.

Several of the committee’s members agreed that regardless of which, if any, of the proposals lawmakers pursue when the Legislature reconvenes for Session next year, it is vital that localities be included in the conversation.

Republican Rep. Richard Gentry of Astor said lawmakers should be cautious in shifting the burden to sales taxes as it would make Florida noncompetitive with other states. It could also upset the fiscal equilibrium of smaller, more financially constrained counties as the state redistributes the funds.

“I would hate to have to try and outvote Dade, Broward and Palm Beach,” he said. “Just the conversation about sales taxes raises the hair on the back of my neck.”

Belleview Republican Rep. Ryan Chamberlin, who last year sponsored legislation to abolish property taxes in Florida and replace them with a new “consumption tax,” said tackling the issue of property tax reform is so difficult because its central concept is unjust.

“We’re trying to tweak and adjust an unfair tax. … We’re taxing people on unrealized gains instead of taxing on real transactions and not bureaucratic opinion,” he said. “And when you’re taxing on bureaucratic opinions, you’ve got all these moving parts that you’re trying to make feel right, but it just never ends up feeling right.”

The committee discussed the five proposals below. Included are key comments about each. Lopez, a Miami Republican, reminded members the proposals are “just starting points.”

“We will be considering,” she said, “any and all suggestions (and) recommendations that we hear (from) of our constituents and stakeholders across the state.”

Proposal 1: Require every city, county and special district to hold a referendum at the next General Election on the question of eliminating property on homestead properties

This proposal, perhaps because it came first, drew the longest discussion Friday. Some, like Tampa Democratic Rep. Dianne Hart, expressed worry about how local governments would be able to pay for services without property taxes.

Parkland Democratic Rep. Christine Hunschofsky said she is concerned that many residents don’t understand what their property taxes pay for and recommended that consideration be given to better educating them before any decision is made.

“We realized in the last election there may have been issues with how people were talking about issues that were on the ballot,” she said, referring to confusion around six proposed constitutional amendments voters weighed in on in 2024.

Port Orange Republican Rep. Chase Tramont said non-homestead properties shouldn’t be left out of the equation.

“People often say renters don’t pay property taxes. That’s not true,” he said. “They are being passed down to them.”

Proposal 2: Create a new $500K homestead exemption for all non-school taxes and increase the exemption to $1M for residents who are 65 or older or who have had a homestead exemption for 30 years or more

Orlando Democratic Rep. Anna Eskamani described this proposal as “very thoughtful,” considering how many longtime residents living on fixed incomes are having an increasingly harder time making ends meet as property values skyrocket.

In Miami-Dade County, for instance, she said there are few properties valued below $500,000, and Florida’s current homestead exemptions aren’t helping homeowners much.

“Creating this new exemption … and then for our elderly people, who are the ones that are in most need and are being displaced from their homes they’ve lived in for decades at a time,” she said, “would provide some real relief.”

Rep. Shane Abbott, a DeFuniak Springs Republican, said it’s the opposite problem in his district, where some counties may not have more than a couple houses each worth $500,000 or more.

He recommended that if the state moves forward with the proposal that there should be “some type of state offset” to compensate for the shortfall it would create.

“And you’re talking about wiping out the entire tax base,” he said. “This one scares me a lot, actually.”

Tallahassee Democratic Rep. Gallop Franklin suggested a formula be used rather than a flat number. Islamorada Republican Rep. Jim Mooney agreed, noting that the median price of a home in Monroe County is more than $900,000.

“Throwing a blanket across the state of Florida is simply not going to work,” he said.

Davie Democratic Rep. Mike Gottleib warned that giving such an “aggressive tax break” could “trap people in their homes.” Instead, he said, the state should work more on affordability or finding ways to help elderly people move into smaller, more affordable homes.

Proposal 3: Authorize the Legislature to raise the homestead exemption up to any value by statute

Republican Rep. Dean Black of Jacksonville praised this option because it would enable lawmakers to act as needed on property taxes, including eliminating them altogether — something to which the two prior proposals don’t fully speak.

“One of the impetuses for us actually having this committee is in recognition of the fact that ad valorem taxes are inherently unfair. You work your whole life to create a home, but you never, ever truly own it,” he said. “This option provides us the freedom and the flexibility to make sure that we do enough to ensure that people are forever free of taxes on property that they’ve bought, that they’ve worked for and they’ve paid for.”

Eskamani said any implementation of the proposal should come with additional ways for localities to generate revenue, since the Legislature would likely have difficulty increasing taxes again if there are fiscal issues.

“If this body were to, for example, reduce the tax liability and expand the exemption, we’re never going to bring it back up,” she said. “Politically speaking, voting to reduce an exemption — i.e., tax more people — is so politically difficult to do and also requires a two-thirds majority in the legislative body, based on the state constitution. I would worry about tying hands in a way that you’re never going to be able to change.”

Proposal 4: Change the existing homestead exemption cap from 3% a year to 3% every 3 years and reduce the non-homestead level from 10% annually to 15% every 3 years for non-school taxes

Black said this was his least favorite option because it wouldn’t accomplish what he believes should be the prime objective of this effort: eliminating unfair property taxes.

Lakewood Ranch Republican Rep. Bill Conerly said the proposal would shift the tax burden to non-homestead properties, which brings problems.

“In my experience, every industry in Florida is labor-constrained, and one of the main constraints is associated with housing,” he said. “This, I think, would have an extremely negative impact on rental property. … It’s going to increase the cost … and it will have a significant impact on those who have not yet been able to secure a permanent home.”

Placida Republican Rep. Danny Nix, a commercial Realtor, warned that increasing non-homestead taxes could hurt the rental market.

Proposal 5: Eliminate the ability to foreclose on a homestead property due to a property tax lien

Everyone hated this idea, and each comment criticizing its logic and merit solicited laughter.

“No disrespect to whoever came up with this one,” Abbott said. “Nobody will pay their property taxes, ever. I mean, I might not at this point.”

Rep. Michael Owen, an Apollo Beach Republican, called the proposal “a disaster.”

“What are you going to tell a bank?” he said. “What would this do to a title insurance policy? Any time you go to close, every lien has to be removed from a property. What you’re doing is you’re actually encouraging a default on the best investment you can make, usually, in your life. This is a really bad idea.”

Hart concurred, describing the proposal as “just awful.”

“Because nobody would pay, and if they don’t pay and if they want to sell their house, it wouldn’t be of any value because they’ve given it all away in liens,” she said. “So yeah, I think we should take this one off the board.”

Overdorf said Perez expects the committee to develop one or more joint resolutions before committees begin meeting ahead of the 2026 Session, which will likely require the panel’s 37 members meet again as inter-chamber negotiations on the state’s next budget recommence.