Florida tax proposal seeks to eliminate homestead property taxes by 2028

Property tax changes coming to Florida residents?

A special session of the state legislature will begin talking about possible changes in property taxes for Florida residents. FOX 13's Danielle Zulkosky has the story. 

TAMPA, Fla - Tampa homeowners could soon see lower property tax bills under a new proposal that aims to significantly increase the state's homestead exemption.

Proposed homestead exemption expansion

What we know:

A new state proposal aims to significantly lower property tax bills for homeowners by expanding the current homestead exemption. Tampa homeowner Jeff James noted that current property tax rates have become unaffordable for seniors living on fixed incomes. James explained that a 50% reduction in property taxes would allow local families to redirect their money toward essential costs like groceries or childcare. "It will help the people that have, you know, three or $400,000 houses, property tax-wise, the older people, retired people that sometimes can't even afford just a property tax payment," James said.

The Historic Capitol building stands in Tallahassee, where state lawmakers and local leaders are deeply divided over the long-term impact of expanding the homestead exemption.

Timeline for tax changes

By the numbers:

According to the proposal, the state homestead exemption would increase from the current $50,000 to $150,000 in 2027. The exemption would then jump to $250,000 in 2028. Gov. Ron DeSantis said the primary purpose of the change is to make homestead property tax-free, calling the potential shift historic. 

Gov. Ron DeSantis speaks at a press conference advocating for constitutional tax relief, stating that the new homestead proposal aims to make primary residences completely property tax-free.

The other side:

Some residents spoke to FOX 13 off camera, expressing fear that the massive tax cuts could eliminate necessary community services. Property taxes are a primary funding source for local schools, public safety, infrastructure and emergency operations. Tampa Mayor Jane Castor urged voters to carefully consider the services they might lose before casting their ballots. "They see 'tax cut,' of course; everybody wants that," Mayor Castor said. "But think about the services that you're going to lose if you do vote."

Tampa Mayor Jane Castor addresses reporters at a local infrastructure site, warning voters that a massive reduction in property tax revenues could trigger steep cuts to vital city services.

Budget adjustments and spending

What they're saying:

"There are a lot of people here and maybe not in this little area, but right outside of this area that need that help," James said. He suggested that local governments could protect emergency services by cutting superfluous spending instead of cutting public safety. "Move money around the right way and not make sure it doesn't reduce police, fire department, everything else," James said.

Future ballot measures

What we don't know:

Officials have not yet detailed how local municipalities will balance their budgets if the tax revenues disappear. Because the changes require a special amendment to the state constitution, it remains unknown whether voters will approve the measure when it hits the ballot this November.