State legislature approves Gov. DeSantis’ property tax relief bill; will go to referendum
Voters will decide Gov. Ron DeSantis’ plan to cut property taxes by raising the tax exception for owner-occupied homes.
The Florida State Legislature passed the plan Tuesday meaning a constitutional amendment that would raise the homestead property tax exemption from $50,000 to $150,000 in 2027 and then to $250,000 the year after will go to referendum this November.
The amendment, which was introduced by Gov. Ron DeSantis, would require approval from 60% of the voters in November to go into law.
The State Senate voted 30-9 and the State House voted 75-26 to pass the bill in the Special Legislative Session.
The legislation was opposed by the Lee County Board of County Commissioners, which voted unanimously on Tuesday to send a letter to the legislature opposing the expanded exemption unless the revenue losses for local governments can be replaced with “stable, recurring replacement funding sources.”
The county projects that the bill could cause a property tax revenue loss of $129.7 million in next year’s budget and a $240.8 million loss in the 2028-29 budget.
State Sen, Jonathan Martin, R-Fort Myers, said he has been in touch with county commissioners and heard their concerns. He said he shared their concerns and said he was trying to find out how the proposed changes will affect their budget. He said he has not seen their projections as of press time.
He questioned if the county’s numbers were taking into account potential growth.
“Are they assuming that no additional homes are going to be purchased down here or that economic activity is going to stop?”
Martin said that “economic activity increases with tax cuts.”
Martin said the bill will shield school districts from losing any tax revenue.
“I feel very strongly that the voters should decide,” Martin said.
Martin had championed a bill last year which would order a study to consider the elimination of property taxes
In their letter of opposition to the proposal, county commissioners said “These proposals represent one of the most significant restructurings of local government finance in Florida’s history and warrant careful consideration of their long-term impacts on communities throughout the state.”
The letter from the county commissioners notes that local communities are still recovering from Hurricane Ian, as well as subsequent hurricanes Helene and Milton.
Ahead of the legislative votes on Tuesday, Cape Coral Mayor John Gunter on Monday sent a letter to the Lee County Legislative Delegation in opposition.
Saying property taxes constitute about 59.7% of the city’s operating fund revenues, which “directly support core public safety and quality-of-life services” he requested two things: That Lee County’s state representatives would:
• Oppose any legislation that would increase the homestead exemption to $250,000 or otherwise further erode local ad valorem revenue without a dedicated replacement funding source; and
• Support efforts to “preserve local fiscal home rule so that rapidly growing communities like Cape Coral can maintain public safety, transportation, parks, and other essential services at levels our residents expect and deserve.”
The matter is expected discussed by city council at its budget workshops on Thursday and Friday.
Town of Fort Myers Beach Manager Will McKannay said the legislation would carry a double impact for local governments, if passed by voters in November.
If Lee County is forced to make budget cuts as a result, that could also impact the town.
“We are looking at definitely an impact if it is passed in full,” McKannay said.
McKannay said the hit in tax revenues to the town could be in the neighborhood of $300,000 or more.
“To some, that may not sound significant but when you are me and looking at what that can money can do for us in regards to staff and services, and most importantly the services we provide on a daily basis there would be an impact,” McKannay said.
McKannay said he wasn’t yet prepared to address how the town’s budget would be impacted, as the exemptions wouldn’t go into effect until next year if approved by voters in November.
The town has more than 1,700 homesteaded properties.
Town Councilmember Rebecca Link questioned whether the Beach would have to raise its millage rate if the property tax exemption is enacted.
“It wouldn’t go into effect until 2027,” Fort Myers Beach Mayor Dan Allers said.