DeSantis Property Tax Plan Faces GOP Backlash

• Florida property tax amendment faces political resistance.
• Proposal would significantly expand homestead tax exemption.
• Local officials warn of major revenue losses.
• Voters decide amendment in November referendum.

Florida Gov. Ron DeSantis has stepped back from actively campaigning for a constitutional amendment that would significantly reduce homeowners’ property taxes after Republican local officials warned the proposal could leave counties and municipalities with major funding shortfalls.

The proposal follows a sharp rise in Florida home values after the pandemic. According to the National Association of Realtors (NAR), Florida recorded the nation’s fastest increase in median annual property taxes, rising 38% between 2019 and 2023, substantially increasing housing costs for homeowners.

Although DeSantis continues to support lowering property taxes, he has acknowledged that the Legislature approved a narrower version of his original proposal, which now faces a 60% voter approval threshold in November before it can become part of the state constitution.

Homestead Exemption Would Triple Under Amendment

The proposal would raise Florida’s homestead exemption from its current $50,000 to $150,000 beginning in 2027, before increasing it again to $250,000 in 2028, with future adjustments linked to inflation. School district property taxes would remain outside the exemption.

Florida is one of nine U.S. states without a personal income tax, relying heavily on property and sales taxes to finance public services. According to the Florida Department of Revenue, property taxes are the primary funding source for counties, municipalities and many special districts.

Supporters argue higher exemptions would help homeowners whose tax bills have climbed alongside soaring property values, particularly since Florida’s population has grown rapidly following the pandemic.

Counties Warn of Major Revenue Losses

Local governments say the tax relief could come at a significant fiscal cost. Pasco County estimates the amendment could reduce annual revenue by approximately $200 million, or roughly 10% of its $2 billion annual budget within two years.

County officials say those losses could affect funding for sheriff’s offices, fire departments, libraries, parks, veterans’ programs and emergency services. Pasco County’s population has expanded by roughly 20% over the past five years, increasing demand for public infrastructure and municipal services.

Smaller municipalities also expect significant impacts. Officials in Zephyrhills, a city of approximately 17,000 residents, estimate annual revenue losses could reach $3 million, potentially forcing difficult budget decisions.

Where Would Florida Replace the Lost Revenue?

Because Florida does not levy a state income tax, replacing lost property tax revenue would likely require greater reliance on sales tax collections or state budget surpluses. DeSantis has suggested providing grants to communities experiencing the largest revenue declines, although no long-term funding mechanism has been announced.

Tax policy analysts note that relying more heavily on sales taxes shifts a larger share of the tax burden toward consumption. According to the Tax Policy Center, consumption taxes generally place a proportionally higher burden on lower-income households because they spend a larger share of their income on taxable goods and services.

Some municipalities have also warned they could increase taxes on commercial properties, rental housing or businesses not covered by the homestead exemption, potentially raising operating costs that landlords may pass on to tenants.

Republican States Increasingly Target Property Taxes

Florida’s proposal reflects a broader national trend. Republican-led states including Texas, Georgia, Nebraska, Alabama, Indiana and Wyoming have approved or expanded property tax relief measures in recent years.

Texas approved major school property tax reductions in 2023 and 2025, funding the cuts largely through state budget surpluses. However, the Tax Policy Center has warned that maintaining those tax cuts during an economic slowdown could eventually require higher sales taxes, reduced public spending or alternative revenue sources.

Florida now faces similar fiscal questions. While reducing property taxes remains politically popular, economists say governments must ultimately replace billions of dollars in lost revenue or reduce spending. As voters prepare to decide the amendment in November, the debate has shifted beyond tax relief toward the long-term sustainability of funding schools, emergency services and local infrastructure.