Clock ticking for Florida lawmakers to strike deal on property tax changes

TALLAHASSEE, Fla. - The push by the governor to eliminate property taxes in Florida is still being debated, but lawmakers are beginning to run out of time to reach an agreement before the end of the session. Significant progress has been made in the House, where committees have advanced three different property tax relief proposals that offer varying degrees of savings for homeowners.

What we know:

One proposal would phase out all non-school property taxes for homesteaded properties. Another would provide additional tax breaks to homeowners who carry property insurance. A third measure would lower the cap on annual increases in assessed taxable value for homesteaded properties.

House Speaker Daniel Perez on Tuesday told reporters he is confident lawmakers will settle on a plan that could go before voters during the November midterm elections but acknowledges the effort cannot move forward without the Senate.

READ: Florida first-time homebuyers: New bill would require employers to assist with down payments, closing costs

"We are going to vote on what we believe is the best product off this floor and if the Senate wants to partake in that great, if they don’t, they’ll have to answer to their constituents when they go home. But I want to get something on the ballot so that in November everyone gets to go to the ballot and vote, and they can decide whether this is too harmful to their local governments and they can vote no or not. That’s the choice they’ll be able to make they deserve that right," Perez said.

The backstory:

The bills being considered are a far cry from an outright elimination of property taxes, but they would still lead to meaningful reductions in collections that fund local services. Notably, none of the proposals includes a clear framework explaining how cities and counties would offset the lost revenue.

Former state senator and head of the Florida Policy Project, Jeff Brandes, says that lack of detail raises major concerns about long-term consequences for local governments.

READ: Florida emergency trust fund nears expiration, House yet to act on extension

"We haven’t even seen the back of a napkin that shows how this is going to work, let alone a full, responsible plan that lays out the intricacies of this, but we also know it’s going to bankrupt some cities and counties," Brandes told WPTV.

By the numbers:

An analysis by the Florida Office of Economic and Demographic Research estimates the current proposals could cost local governments between $6.7 billion and $18.3 billion statewide, depending on which plan moves forward.

The impact of HJR 201, which would exempt more than 5 million homesteaded properties from all taxes other than school district collections, would be most significant. Potential annual losses for several Bay Area counties include:

• Hillsborough County: $1.2 billion

• Pinellas County: $907 million

• Pasco County: $480 million

• Sarasota County: $418 million

• Polk County: $380 million

• Manatee County: $373 million

What's next:

Any proposal to reduce or eliminate property taxes would ultimately need voter approval this November. To place an amendment to the property tax on the ballot, lawmakers must first reach a compromise between the House and Senate.