State House votes to eliminate homestead non-school property taxes
Bill requires Senate approval and referendum
The Republican-dominated Florida State House voted 80-30 to approve a bill which would seek to amend the state Constitution and exempt homesteaded properties in the state from paying non-school property taxes to municipalities, counties and other local government taxation authorities.
The bill also would prohibit local governments from reducing total funding for services provided by law enforcement, firefighters, and other first responders while at the same time reducing local government funding to pay for services.
To enact the law would require a referendum with approval from 60% of voters, along with a bill from the State Senate with concurring language.
Early reports have indicated the State Senate is not yet on the same page as far as what the legislation should look like.
Lee County members of the State House and State Senate who were contacted did not respond to requests for comment by press time.
All five Republican members of the Lee County House delegation voted for the measure. Rep. Mike Giallombardo, whose district includes Cape Coral, joined Rep. Adam Botana, Rep. Tiffany Esposito, Rep. Tiffany Oliver and Rep. Jenna Persons-Mulicka in voting in favor of the legislation.
The property tax cutting legislation has been pushed by Gov. Ron DeSantis, whose term in office ends in November.
Under the bill passed by the State House this past week, those who own homesteaded properties in Florida would not have to pay any non-school property taxes.
Florida referendums to increase the amount of property value that a homesteaded property can be exempt from property taxes on, have failed twice since 2018. A bill in 2018 to increase the amount of the exemption for all homestead properties failed a referendum, and a bill in 2022 to increase the exemption just for public servants, also failed in a referendum. Referendums require approval of 60% of voters.
Debate on the House Floor this past week lasted about two hours before the lopsided vote. Most of the debate centered around opposition from Democratic lawmakers. Democrats offered three amendments to the legislation, which were rejected by Republicans in voice votes. One of the amendments would have required the state legislature to set aside funding for public safety agencies and first responders to make up for funds that local governments would lose as a result of the amendment to the Constitution.
The bill was introduced by Palm Bay Republican Monique Miller, who defended the legislation from the Democratic criticism.
Miller took questions from circumspect Democrats. Jacksonville Rep. Angela Nixon asked what the fiscal impact would be on local municipalities across the state. Miller said in the first year, the total impact would be $4.8 billion “and the overall impact is $14.7 billion.” It wasn’t clear how Miller came up with the two figures or how they were differentiated.
Miller was asked by Nixon if she was concerned about the impact on essential services, health services and local infrastructure projects. “I am not,” Miller said. “I am absolutely confident that we can find a path forward without a significant impact to services.”
Miller was asked which revenue sources would be proposed to replace the property tax revenue that was lost, through either sales tax increase or other ways. “The short answer is none,” Miller said. “I am absolutely confident there are ways to cut costs.”
Orlando Democrat RaShon Young asked of Miller as to which services would be cut since the legislation protects the budgets of public safety spending.
Miller said she doesn’t expect services to be cut. “I am expecting that this is going to stimulate a culture of thrift across our great, free state,” Miller said.
Young questioned which models had been used by Miller to determine the impacts on local municipalities including such departments as parks and recreation, road maintenance, libraries and stormwater systems.
“We brought in experts from every level of government,” Miller said. “We are confident this is a reasonable, measured approach,” Miller said. “The first year’s impact is not even $5 billion across the entire state. I am confident that our local governments can absorb that without having to cut costs and if they are, you know, I think we are all going to have a conversation about what essential services are. Everybody says its libraries, let’s start with lobbyists.”
Miller was asked several times about which studies were used to determine the impacts, including those of “unfunded mandates.” Miller deflected numerous other questions about the financial impact of the bill on municipalities by saying they would be addressed at a later stage, or by the next state legislature.
Some of the questions included how the bill would impact bond ratings and interest rates, and how municipalities would be able to afford for firefighter and law enforcement increases in budgets with the loss of funding, impacts to senior services, sanitation and other services. Democrats questioned whether sales taxes would need to be increased to make up for the loss of property tax revenue.
Other Democrats said the real issue wasn’t property taxes but the affordability of property insurance which they said wasn’t being addressed by the state legislature.
Orlando Democratic Rep. Jennifer Harris compared the proposal to asking someone to quit their job to “do more with less,” to make up for increased expenses.
“Floridians are not dumb and will see through this,” Harris said. “This is a ruse to not take care of the real issues we are struggling with.” Harris said local governments were already struggling.
Orlando Democratic Rep. Dr. Anna Eskamani said “it’s easy for us to pass a big bill like this when we aren’t the ones paying for it.” Eskamani said the bill would in effect freeze the budgets of local municipalities. Eskamani questioned how the state could mandate a trusting of the public safety budget without any requirements for infrastructure or children’s services.
State House Speaker Daniel Perez, R-Miami, credited DeSantis with pushing the issue “to the forefront” of the legislature. Perez said the legislation approved by the House could be “the most aggressive legislation ever passed by a legislative chamber on property taxes in the history of the United States.”
To reach NATHAN MAYBERG, please email nmayberg@breezenewspapers.com