Florida property tax cut

In one of his final acts, DeSantis calls for vote on sweeping Florida property tax cut

If Republican legislative leaders go along with DeSantis' plan, it will give the GOP a way to argue it is addressing the state’s persistent affordability crisis heading into the midterms.

By Gary Fineout

Gov. Ron DeSantis is calling for a sweeping property tax cut that, if approved by voters this fall, would spare millions of Florida homeowners from paying taxes on their primary residence — and provide DeSantis with a key policy win as he prepares to end his second term.

The GOP governor on Wednesday rolled out his long-awaited plan he wants the Legislature to pass during a special session he scheduled to run from June 1 to June 3. If Republican legislative leaders go along with DeSantis’ plan, it will also give the GOP a way to argue it is addressing the state’s persistent affordability crisis heading into the midterms.

“That is the best way we can make a meaningful difference in the lives of people, particularly those who are trying to make ends meet,” DeSantis said during a press conference in Tampa to announce his proposal. “I think a lot of people need relief. I think a lot of people have been wondering, where can we get it? We’re showing a pathway to be able to get that done that I think is going to be transformational for people.”

DeSantis’ effort to overhaul property taxes will be likely be his last substantive policy push during his eight years in office. But he has two potential obstacles: The governor must convince a supermajority of the Legislature to place the item on the ballot, and then he must sway 60 percent of those voting in November to approve the tax cut. DeSantis has been openly feuding with Republicans in the state House that he must now rely on to put the measure before voters.

DeSantis has not yet distributed a copy of the legislation he wants lawmakers to pass, although he did circulate a one-page summary online. But the governor said he wants to increase the state’s homestead exemption from $50,000 to $250,000, a move that would wipe out property taxes for about 60 percent of Florida residents who now qualify for the exemption. He wants to increase that exemption level even more over the next few years, but he would leave that timing up to state legislators.

The plan pitched by DeSantis would also call for placing a 5 percent limit on how much the value of commercial and non-residential property can increase each year. He additionally wants to require anyone who relocates to Florida after Jan. 1, 2027, to wait five years before getting the larger tax break.

State Senate President Ben Albritton quickly endorsed the governor’s plan before all the details were released. In a memo to senators, Albritton said the proposal cuts property taxes in a “straightforward and substantial way,” then linked the plan to the 250th anniversary of the founding of the United States of America.

“I can’t think of a more meaningful way to celebrate America’s 250 then the passage of $250,000 in tax relief for every Florida homeowner,” Albritton wrote. “I believe this amendment will provide meaningful relief for Florida families, while protecting businesses from extreme tax increases and safeguarding local funding for public safety, education and our clean water infrastructure.

State House Speaker Daniel Perez — who previously zinged DeSantis for not releasing a detailed plan — was more circumspect in his response and noted that the Florida House had already passed a property tax cut proposal during the regular session that was never considered during by the Senate.

“We are pleased the governor has finally gotten around to share an actual proposal,” Perez said in a statement. “We look forward to reviewing it once we have received th elanguage.”

One clear bit of leverage DeSantis has right now: The Legislature will have to vote on the property tax proposal before the governor has signed the new state budget. DeSantis has line-item veto power and could eliminate spending items being sought by legislators who go against him.

The proposed amendment, which the governor called “historic,” will likely draw swift and fierce opposition from those fearful that the tax overhaul will take away billions now spent on schools, cities and counties including money spent on core government functions such as police and first responders.

DeSantis — who has said he will not endorse raising other taxes to offset property tax losses — said he also wants to create a stand-alone fund to provide grants from the state to local governments to continue “core local services.” But the potential loss to school districts could be billions that even the state may have trouble replacing.

State House Democratic Leader Fentrice Driskell said Democrats were “open to solutions that create affordability,” but she questioned the potential impact to local governments and schools and whether it would result in residents having to pay fees to use libraries and parks.

“Any such maneuver the governor is talking about ... we know would have devastating consequences,” Driskell said. “We’re very concerned with what we have seen from the governor so far.”

Democratic State Sen. Lori Berman told POLITICO she wasn’t yet sure what her caucus’ messaging would be leading up to the property tax special session, but would have a better sense by Thursday after she has had “a chance to talk to members.”

DeSantis has been calling for property tax cuts for more than a year, arguing that homeowners should not be “renting” their primary residence from the government due to ongoing tax bills. He repeated that assertion Wednesday.

“I really look forward to the day where a Floridian, and if this passes, will be a reality, where you really do own your own home,” DeSantis said.

The Florida House passed its own property tax overhaul during the regular session, but its proposal — which would have eliminated an estimated $18 billion in tax revenue — kept intact property taxes paid to school districts. House Republicans acknowledged that they were concerned about the potential political backlash if they cut funding to schools.