Property tax study warns of uneven impact to rural areas if they're eliminated in Florida

Potential impacts if property taxes removed

A new report from the Florida League of Cities takes aim at efforts by lawmakers to eliminate property taxes. FOX 13's Evan Axelbank reports.

TAMPA, Fla. - A new report from the Florida League of Cities takes aim at efforts by lawmakers to eliminate property taxes in Florida. 

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The report said whether the state fully eliminates property taxes, exempts some from relief — based on things like age — or gives percentage-based discounts, the wealthy will get wealthier, renters and new buyers won't get any benefit, and wealthier areas will absorb the changes in funding.

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It said rural areas would face sharper trade-offs.

"It's less of a tax break and more of a tax shift," said State Rep. Anna Eskamani. "When you eliminate property tax as a source of revenue, you become healthy reliant on things like fees and fines. So that would make a lot of public amenities no longer public."

The study's four conclusions focus heavily on the impact to rural communities, saying the loss of a central revenue source risks weakening rural revitalization strategies. 

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Governor Ron DeSantis has promised to back fill some of that money with $300 million in his new budget. 

What they're saying:

The CFO, who is pushing for major reform along with the governor, insists rural counties that have fewer income streams will be kept fiscally whole.

"The reason why this is all laughable is they're talking about and asking the question, how can you replace, how are you going to replace the revenue that we already have?" said Florida's CFO Blaise Ingoglia. "They're not even contemplating the fact that they have large bloated budgets."

Further, he insists that the League of Cities study, which also warns of the impact on bond ratings and public safety funding, is a plant, because local governments — the ones whose budgets are most threatened by a drop in property taxes — funded the study itself.

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"They're gonna do everything that they can to protect themselves and protect the funding," said Ingoglia.

What's next:

Right now, the legislature is debating several proposals that could be on the ballot in November 2026 for the voters themselves to weigh in on. 

Some would ban property taxes altogether, some would phase them out, and others would base them on factors like age. It is not clear which — if any — will win the most support in the legislature.

Previous studies have said the state part of the sales tax would have to double in order to keep services the same without property taxes, which make up more than two-fifths of local revenues.