Florida Governor Ron DeSantis’s push to eliminate property taxes would require the state to find replacement revenue of approximately $43 billion or about $2,015 per capita to maintain current public services, according to a report by the Florida Policy Institute.
The report, titled “A Risky Proposition: Weakening Local Governments by Eliminating Property Tax Revenue,” warns that eliminating property taxes would severely undermine local government autonomy and potentially worsen Florida’s already regressive tax structure.
“In Florida, the ability of local governments to raise revenue for operations is limited by the state constitution,” the report states. “As a matter of fiscal management and local autonomy, the property tax is paramount.”
Sponsored · Cambria Gold Mines
Property taxes currently account for 38% of county revenue, 17% of municipal revenue, and 50% to 73% of school district revenue, functioning as the financial backbone of local government operations across the state.
The report indicates that proposals to eliminate property taxes typically rely on increased sales taxes, which would disproportionately burden low and moderate-income families. According to calculations in the report, Florida would need to either double the state’s general sales tax rate to 12% or find other revenue sources to offset the loss.
“Households with low to moderate incomes, including both property owners and renters, will end up paying more in taxes, as a percentage of their earnings, compared to wealthy residents if sales taxes increase to make up the lost revenue,” the report concludes.
The Institute on Taxation and Economic Policy had previously ranked Florida as having the most regressive tax system in the nation, with the lowest-income 20% of residents paying 13.2% of their income in state and local taxes, while the wealthiest 1% pay just 2.7%.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
