Florida TaxWatch urges state legislators to use caution on homestead property tax plan

As the Legislature is meeting in Special Session to decide if they’ll radically revise the state’s homestead property tax exemption rules, a watchdog group is advising lawmakers to proceed carefully.

Florida TaxWatch issued an analysis as the Special Session got underway in Tallahassee. The organization lauded legislators for meeting, but advised that solely addressing homestead tax structures may not be enough to control taxation in the state.

“We do not believe you can solve the problem by simply discussing the increase in property tax,” a TaxWatch press release said.

Gov. Ron DeSantis called the Special Session to ask lawmakers to approve raising the homestead exemption limit to $150,000 beginning Jan. 1, and hiking that to $250,000 in 2028. Eventually, it would eliminate the exemption entirely, according to a proposed Senate resolution (SJR 2-F).

TaxWatch said that isn’t going to solve all tax issues in Florida.

“We also need to discuss the rapid increase in local government budgets. If guardrails aren’t put in place to curb local government spending, any reduction in homestead property tax revenue will simply be passed on to non-homestead property owners or replaced with other taxes, fees, and assessments.”

TaxWatch officials say the Session is a noble effort. But lawmakers may be moving too swiftly.

“Florida’s property tax system already shifts billions in property taxes from homesteads to non-homestead property. This proposal would worsen this inequity, even with the reduction in the non-homestead cap,” the TaxWatch analysis said.

The group’s position reiterates concerns covered in a TaxWatch report published in January.

The DeSantis homestead proposal needs 60% approval from the House and Senate in order to be enacted.

TaxWatch isn’t the only high-profile organization to raise questions about the proposed homestead revisions.

The Florida Policy Institute (FPI) published a report heading into the Special Session. The group projects that if DeSantis gets his way, the plan will cost billions of dollars for municipalities to make up funding for government services.

But the homestead proposal has its supporters. Sen. Don Gaetz said he’s behind it.

“I agree that there are more and different ways to reduce property taxes other than the Governor’s plan,” the Seaside Republican said. “But the fact is that neither the Senate nor the House has proposed a plan that could pass the Legislature and gain the support of the Governor and the voters.”