The Cost of Property Tax Reforms
Overview/Background
As the Florida League of Cities explains, “property tax reform has emerged as one of the most consequential fiscal policy debates in decades. State leaders are debating whether structural reform, including possible constitutional changes, is warranted.”[1] Throughout 2025, Gov. Ron DeSantis called for the elimination of property taxes,[2] while the Florida Legislature passed a provision in its tax package to analyze the impact of eliminating property taxes.[3] The Florida House of Representatives convened a Select Committee on Property Taxes to consider the issue,[4] and its efforts have produced several joint resolutions to eliminate or reform the property tax code,[5] which lawmakers are considering during the 2026 legislative session. To date, in the Florida Senate, lawmakers have only filed a handful of resolutions, and the Executive Office of the Governor (EOG) is yet to offer any guidance on what property tax reform ought to be. Instead, the governor vetoed the Legislature’s property tax study[6],[7] and released a budget recommendation for fiscal year 2026-27 without any plans beyond setting $300 million aside to “support ongoing policy considerations, ensuring that any statewide property tax relief framework is implemented in a stable and fiscally sound manner.”[8],[9]
Legal Considerations: Florida Voters Will Ultimately Decide the Fate of Property Tax Reform
Joint resolutions are the only authorized method by which the Legislature may propose amendments to the State Constitution.[10] To pass, both chambers must approve the resolution by a three-fifths vote. Thereafter, the resolution would appear as a proposed amendment on a statewide ballot where it would need 60 percent approval to become law. Any joint resolution passed by the Legislature would appear on the November 2026 ballot.
The Current Landscape of Proposals
Law Enforcement, Firefighters, and First Responders
As originally filed, all the House Joint Resolutions (HJRs) below would prohibit localities from reducing funding for law enforcement by mandating a baseline budget equal to FY 2025-26 or FY 2026-27. Policymakers are also amending the mandate to include firefighters and other first responders.[11]
HJR 201: Elimination of Non-school Property Tax for Homesteads
HJR 201 would exempt the state’s 5.1 million homesteaded properties (i.e., primary residences) from all property taxes other than school district collections.[12] Florida’s Revenue Estimating Conference (REC) estimates HJR 201 would cost local governments (excluding school districts) $18.3 billion annually.[13]
HJR 203: Phased Out Elimination of Non-school Property for Homesteads
Florida offers a benefit known as a “homestead exemption” to residents who make their home their permanent primary residence.[14] There are two main homestead exemptions available to homeowners: (1) a $25,000 exemption for all property taxes that applies to the $0 to $25,000 range of assessed value and (2) a second $25,000 exemption, indexed to inflation, for all non-school property taxes that applies to the $50,000 to $75,000 range of assessed value. HJR 203 would add $100,000 to the state’s second homestead exemption each year for 10 years to phase out property taxes. Then, beginning in 2037, homesteads would be exempt from all non-school property taxes. The REC estimates that HJR 203 would cost local governments (excluding school districts) $13.3 billion annually.[15]
HJR 209: Property Insurance Relief Homestead Exemption Non-school Property Tax
HJR 209 would create an alternative $200,000 second homestead exemption for homeowners who have comprehensive homeowners’ insurance — approximately 83 percent of homeowners would qualify.[16] The REC estimates that this alternative homestead exemption would cost local governments (excluding school districts) $8.6 billion annually.[17]
HJR 205: Elimination of Non-School Property Tax for Homesteads for Persons Age 65 or Older
According to the Shimberg Center for Housing Studies, about 30 percent of property owners aged 65 or older spend more than 30 percent of their income on housing costs.[18] HJR 205 would eliminate non-school property taxes for Floridians aged 65 or older with a homestead exemption. The REC estimates HJR 205 would cost localities (excluding school districts) $6.7 billion annually.[19]
HJR 213: Modification of Limitations on Property Assessment Increases
Per the Florida Constitution, the assessed value of homesteads — the value of a home once differentials like Save Our Homes (SOH) are considered — must change annually on January 1 of each year.[20] HJR 213 aims to change the process by requiring assessments to happen once every three years instead of annually. The REC estimates this would cost localities (excluding school districts) $5.3 billion on a recurring basis.[21]
HJR 207: Assessed Home Value Homestead Exemption of Non-school Property Tax
SOH exempts nearly $930 billion of taxable value from property taxes, leading to $15.2 billion in tax savings.[22] The bulk of the state’s SOH benefits go to long-term homeowners who have accumulated more savings as the market value of their homes outpaces the assessed value of their homes, which are capped to (i) the lesser of 3 percent of the prior year’s assessment or (ii) inflation. On average, SOH and homestead exemptions offer a combined benefit reduction equal to 50 percent of market value (i.e., on average property owners pay taxes on half what their home is worth).[23] However, new homeowners who have not accrued significant SOH benefits do not get the same reduction. Consequently, HJR 207 would create a new homestead exemption for non-school property taxes equal to 25 percent of the remaining assessed value after subtracting homestead exemptions. According to the REC, this new homestead exemption would cost localities (excluding school districts) $4.6 billion annually.[24]
HJR 211: Accrued Save-Our-Homes Property Tax Benefit for Non-school Property Tax
Under current law, homeowners can transfer (or port) their SOH benefit to a new property if it is made their new homestead within three years of abandoning their prior home. For both school and non-school property taxes, the maximum portable benefit equals $500,000. HJR 211 would make it so property owners could transfer their full benefit. The REC estimates this would cost localities (excluding school districts) $364 million annually.[25]
Current Property Tax Proposals Would Shift Costs and Decision-Making Under the Guise of Savings
While the current array of proposals does not contemplate the end of all property taxes, the elimination of non-school property taxes for homesteads — a common feature of these joint resolutions — would still cost localities anywhere from $6.7 billion (HJR 205) to $18.3 billion (HJR 201) annually.[26] Additionally, since the proposals specify that local governments must keep public safety budgets at FY 2025–2026 or FY 2026–27 levels (whichever is greater), the passage of any of these resolutions would force local governments to cut other public services or increase taxes or fees to conform to the state’s unfunded mandate. In effect, these proposals would preempt local budget decisions to the state, eroding local fiscal autonomy and funding preferences, while shifting costs instead of offering real savings.
Additionally, since the proposals specify that local governments must keep public safety budgets at FY 2025–2026 or FY 2026–27 levels (whichever is greater), the passage of any of these resolutions would force local governments to cut other public services or increase taxes or fees to conform to the state’s unfunded mandate.
While Some Floridians Struggling Financially Would See a Reduction in Property Taxes, the Resolutions Would Also Benefit Wealthy Homeowners at the Expense of Tax Fairness
Several of the joint resolutions look to target specific homeowners: for example those with multiperil property insurance policies (HJR 209) and homeowners aged 65 and up (HJR 205). At the same time, HJRs 213 and 211 would further benefit homeowners who purchased their properties when market values were low (in comparison to now). While these resolutions would undoubtedly result in reduced property taxes for some homeowners who are struggling to afford the basics, Floridians with low to moderate income are also the people who would be impacted most by the corresponding cuts to services or increases in other, more regressive taxes that localities would be forced to turn to to make up for the lost revenue. Furthermore, these resolutions would also benefit wealthy homeowners, who already pay the least in state and local taxes as a share of household income.[27]
Moreover, due to structural racism and labor market discrimination,[28] Black and Latina/o households have — on average — lower incomes than white households and are more likely to rent rather than own homes,[29],[30] and therefore would be less likely to benefit. Even when looking solely at homeowners, Black households own significantly lower value homes than white households.[31]
By providing greater benefits to the wealthiest homeowners at the expense of the 32 percent of Floridians who rent,[32] sweeping property tax cuts would put the state further from the goal of achieving fairness through the tax code.
The Proposals Double-Down on Current Inequities and Add New Ones
In 2007, the Legislative Office of Economic and Demographic Research (EDR) determined that:
- “Exemptions shrink the property tax base and, in Florida, reduce the total capacity to raise revenues. They also shift the property tax burden (and cost for public services) from the exempt entity to nonexempt entities.”[33]
- “A direct outcome of the Save Our Homes tax preference is that dissimilar tax burdens have been placed on homeowners in similar circumstances, based solely on length of ownership. This is horizontal inequity.”[34]
The joint resolutions do not address these issues; instead, they entrench them. Also, by eliminating or significantly reducing property tax collections, the proposals would erode some of the benefits that property taxes offer, like predictability, stability, and public freedom/choice. As the Tax Foundation notes, property taxes are commonly seen as connected to benefits.[35] This means families choose where to live based on the amenities a local government provides and what they are willing to pay for those amenities. Because this is an arrangement that families opt into rather than one imposed by the state, the property tax is a better reflection of their preferences when compared to consumption taxes.
Notes
[1] Hai (David) Guo and Shaoming Cheng, “Fiscal Structure & Revenue Resilience of Florida Municipalities: A Microsimulation Assessment of Homestead Property Tax Reform Scenarios,” Florida League of Cities, December 2025, page 7, https://www.flcities.com/wp-content/uploads/2025/12/Fiscal-Structure-and-Revenue-Resilience-of-Florida-Municipalities.pdf.
[2] Esteban Leonardo Santis, “A Risky Proposition: Weakening Local Governments by Eliminating Property Tax Revenue: Appendix,” Florida Policy Institute, February 25, 2025, https://www.floridapolicy.org/posts/a-risky-proposition-weakening-local-governments-by-eliminating-property-tax-revenue.
[3] Esteban Leonardo Santis, “Behind the Numbers: What Floridians Should Know About the FY 2025-26 Tax Package,” Florida Policy Institute, July 11, 2025, https://www.floridapolicy.org/posts/behind-the-numbers-what-floridians-should-know-about-the-fy-2025-26-tax-package.
[4] Daniel Perez (Speaker), “Florida House Forms Select Committee Targeting Property Tax Relief for Homeowners,” Florida House of Representatives, April 29, 2025, https://www.flhouse.gov/api/document/house?listName=Press%20Releases&itemId=917. See also Office of the Speaker, “Memorandum: Establishment of the Select Committee on Property Taxes,” Florida House of Representatives, May 1, 2025, https://www.flhouse.gov/api/document/house?listName=Press%20Releases&itemId=919.
[5] Office of the Speaker, “Memorandum: Property Taxes,” Florida House of Representatives, October 16, 2025, https://www.flhouse.gov/api/document/house?listName=Press%20Releases&itemId=922.
[6] Executive Office of the Governor, “Governor Ron DeSantis Signs Florida Fiscal Year 2025-2026 Budget: Veto List,” June 30, 2025, page 13, https://flgov.com/eog/sites/default/files/shared/2025/06/2025%20Final%20Veto%20List.pdf.
[7] https://floridabudgetfy2627.com/PDFLoader.htm?file=HomeFY27.pdf.
[8] Governor Ron DeSantis, “Floridians First: Fiscal Year 2026–2027 Budget Proposal: Tax Relief for Today and Tomorrow,” https://floridabudgetfy2627.com/PDFLoader.htm?file=HomeFY27.pdf.
[9] https://floridabudgetfy2627.com/PDFLoader.htm?file=HomeFY27.pdf.
[10] Florida Department of State, “Constitutional Amendments/Initiatives,” Florida Division of Elections, November 5, 2025, https://dos.fl.gov/elections/laws-rules/constitutional-amendmentsinitiatives/.
[11] See HJRs 203, 209, and 213, Section 7, which includes language to codify the “prohibition of reductions in local first responder funding. Beginning with the 2027–2028 local fiscal year, the total funding provided by each local government for services provided by law enforcement, firefighters, and other first responders, as provided by general law, may not be less than such jurisdictions total budgeted amount for such services in either the 2025–2026 or 2026–2027 local fiscal year, whichever was higher, notwithstanding any reduction in ad valorem revenue that may result from the amendment to Article VII approved by voters on November 3, 2026.”
[12] Office of Economic and Demographic Research (EDR), “Property Taxes: Homestead Distribution and Benefits,” House Select Committee on Property Taxes, September 22, 2025, page 2, https://edr.state.fl.us/Content/presentations/property-tax-study/Property-Tax-Homestead-Distribution-and-Benefits.pdf. Calculation is based on EDR’s report that “in 2025, homestead parcels were about 47 percent of the state’s 11 million parcels.”
[13] Office of Economic and Demographic Research (EDR), “HJR 201: Elimination of Non-School Property Tax for Homesteads,” Revenue Estimating Conference, October 31, 2025, page 2, https://edr.state.fl.us/Content/conferences/revenueimpact/archives/2026/_pdf/page1-8.pdf.
[14] Department of Revenue, “PT-113, Property Tax Information for Homestead Exemption,” August 2025, https://floridarevenue.com/property/Documents/pt113.pdf.
[15] Office of Economic and Demographic Research (EDR), “HJR 203: Phased Out Elimination of Non-School Property Tax for Homesteads,” Revenue Estimating Conference, October 31, 2025, page 35, https://edr.state.fl.us/Content/conferences/revenueimpact/archives/2026/_pdf/page34-41.pdf.
[16] Office of Economic and Demographic Research (EDR), “HJR 209: Property Insurance Relief Homestead Exemption for Non-School Property Tax: Section 3: Methodology,” Revenue Estimating Conference, November 21, 2025, page 61, https://edr.state.fl.us/Content/conferences/revenueimpact/archives/2026/_pdf/page61-69.pdf.
[17] Office of Economic and Demographic Research (EDR), “HJR 209: Property Insurance Relief Homestead Exemption for Non-School Property Tax,” Revenue Estimating Conference, November 21, 2025, page 63.
[18] Shimberg Center for Housing Studies, University of Florida, “Special Needs: Disability, Housing Need and Householder Age, 2023 Estimates,” Florida Housing Data Clearinghouse, http://flhousingdata.shimberg.ufl.edu/special-needs/results?nid=1.
[19] Office of Economic and Demographic Research (EDR), “HJR 205: Elimination of Non-School Property Tax for Homesteads for Persons Age 65 or Older,” Revenue Estimating Conference, October 31, 2025, page 19, https://edr.state.fl.us/Content/conferences/revenueimpact/archives/2026/_pdf/page18-25.pdf.
[20] Department of Revenue, “The Property Tax System,” https://floridarevenue.com/property/Documents/PTSCycle.pdf.
[21] Office of Economic and Demographic Research (EDR), “HJR 213: Modification of Limitations on Property Assessment Increases for Non-School Property Tax,” Revenue Estimating Conference, October 31; November 7, 2025, page 72, https://edr.state.fl.us/Content/conferences/revenueimpact/archives/2026/_pdf/page70-79.pdf.
[22] Florida Revenue Estimating Conference, “Florida Tax Handbook: Fiscal Impact of Potential Changes: Ad Valorem Taxes, Office of Economic and Demographic Research,” October 2024, page 225, https://edr.state.fl.us/content/revenues/reports/tax-handbook/taxhandbook2024.pdf.
[23] Office of Economic and Demographic Research (EDR), “Property Taxes: Homestead Distribution and Benefits,” House Select Committee on Property Taxes, September 22, 2025, page 13.
[24] Office of Economic and Demographic Research (EDR), “HJR 207: 25 Percent Homestead Exemption for Non-School Property Tax,” Revenue Estimating Conference, October 31; November 7, 2025, page 11, https://edr.state.fl.us/Content/conferences/revenueimpact/archives/2026/_pdf/page10-17.pdf.
[25] Office of Economic and Demographic Research (EDR), “HJR 211: Full Portability for Non-School Property Tax,” Revenue Estimating Conference, October 31; November 7, 2025, page 27, https://edr.state.fl.us/Content/conferences/revenueimpact/archives/2026/_pdf/page26-33.pdf.
[26] Not all resolutions look to eliminate property taxes. Specifically, HJRs 207, 209, 211, and 213 look to create or expand exemptions or reform the assessment process. Nevertheless, due to their costs and equity limitations, these resolutions still fall short of equitable tax relief.
[27] Carl Davis et al., “Who Pays? A Distributional Analysis of the Tax Systems in All 50 States (7th edition), Institute on Taxation and Economic Policy,” ITEP, January 2024, https://sfo2.digitaloceanspaces.com/itep/ITEP-Who-Pays-7th-edition.pdf
[28] See the Florida Timeline, “Housing,” https://www.floridatimeline.org/housing/; “Worker Justice,” https://www.floridatimeline.org/worker-justice/.
[29] Women’s Bureau, “Median Annual Earnings by Sex, Race and Hispanic Ethnicity,” U.S. Department of Labor, December 2025, https://www.dol.gov/agencies/wb/data/earnings/median-annual-sex-race-hispanic-ethnicity.
[30] U.S. Census Bureau, “Homeownership by Race and Ethnicity of Householder: Florida,” September 28, 2023, https://www.census.gov/library/visualizations/interactive/homeownership-by-race-and-ethnicity-of-householder.html.
[31] Brianna Crane, “Exclusive: Race Gaps in Home Values, Mapped,” Axios, February 15, 2024, https://www.axios.com/2024/02/15/race-home-value-inequality-map.
[32] U.S. Census Bureau, “State: Florida: Housing,” n.d., https://data.census.gov/profile/Florida?g=040XX00US12#housing.
[33] Legislative Office of Economic and Demographic Research (EDR), Florida’s Property Tax Study Interim Report (As Required by Chapter 2006-311, Laws of Florida), February 15, 2007, page 2, https://edr.state.fl.us/content/special-research-projects/property-tax-study/ad%20valorem-iterim-report.pdf.
[34] Legislative Office of Economic and Demographic Research (EDR), Florida’s Property Tax Study Interim Report (As Required by Chapter 2006-311, Laws of Florida), February 15, 2007, page 3.
[35] Jared Walczak, “Confronting the New Property Tax Revolt,” Tax Foundation, November 5, 2024, https://taxfoundation.org/research/all/state/property-tax-relief-reform-options/.






