Property Taxes in Florida: Should They Be Banned?

for sale sign in front of Florida home
  • Florida homeowners face increasing property tax burdens due to surging home values.
  • A proposed Florida property tax ban could significantly alter funding for local public services.
  • Seniors and low-income families may be hit hardest by potential sales tax hikes to offset lost property tax revenue.
  • North Dakota voters rejected a similar property tax ban due to concerns over service cuts.
  • Real estate markets like Nevada remain attractive due to stable, low tax policies and minimal reform volatility.

Florida is getting national attention with a strong proposal: eliminating property taxes. With home values increasing and yearly tax bills rising, many Florida homeowners—especially retirees and working-class families—are feeling strained. Governor Ron DeSantis has suggested the property tax system is flawed, proposing a property tax ban that would change the way local government is funded. While the idea gets support from frustrated residents, it also presents a number of complex issues affecting everything from public education to real estate investment.

Florida state capitol building in daylight

What’s Happening in Florida?

Governor Ron DeSantis has placed Florida at the front of a possible fiscal shift. In his March 2024 State of the State address, he proposed what some are calling the most forceful tax policy change in modern U.S. history: the elimination of Florida property taxes.

This wasn’t just for show. His comments came supported by legislative discussion, proposed constitutional changes, and related bills introduced by lawmakers seeking everything from partial relief to complete abolishment. DeSantis argues that local governments are taking advantage of inflated home values, effectively penalizing people for appreciating property. In his words, “homeownership shouldn’t come with the burden of lifetime rent to the government.”

Social media interest has increased public support for change. DeSantis’s proposal is being considered seriously in state legislative circles. At the same time, many other bills target more specific parts of the property tax system—such as exempting storm mitigation improvements from increasing assessed home values, a proposal that has already passed legislative steps.

This points to a larger sentiment: Florida may be moving rapidly toward either change or upheaval.

elderly couple looking at property tax bill

The Case for Banning Property Taxes in Florida

Those who support the property tax ban believe the current system is not only old-fashioned but also harmful to stable homeownership. Among the most direct arguments:

  • Taxing Appreciation Punishes Owners – As home values go up, tax assessments increase—even if owners haven’t sold their property or made major improvements. This connects housing market inflation directly to individuals’ recurring expenses.
  • Economic Insecurity for Seniors and Low-Income Households – Florida’s population includes a large retired group living on fixed incomes. Rising property taxes act almost like a form of economic displacement, forcing these residents to downsize or relocate.
  • Government Growth – According to DeSantis and other proponents, property taxes encourage unchecked government growth. As property values go up, so does local revenue—without performance checks or agreement from taxpayers.
  • Homeownership is Not “True Ownership” – The idea behind this is important. DeSantis’s “you’re effectively renting from the government” idea connects with those who believe paying yearly taxes on already-purchased property weakens private ownership rights.

Change supporters find ideas from past events. The anger behind California’s Proposition 13 in the late 1970s led to laws limiting property tax rates and assessment growth. Florida may now be at a similar point.

The Case Against the Property Tax Ban

Despite the appeal of eliminating property taxes, the opposing arguments are pressing and varied. Critics point out serious results that could spread through every part of Florida’s public structure:

  • Loss of Local Revenue – Property taxes in Florida account for billions yearly used to fund schools, police departments, hospitals, libraries, parks, and emergency services. Eliminating this income, without a solid replacement, makes a large deficit.
  • Service Disruptions and Inequality – Local governments that depend heavily on property tax revenue may face operational failures. Poorer communities with no backup financial plans could suffer the most, increasing inequality.
  • Sales Tax is More Regressive – Proposed replacements involve increasing the state sales tax, possibly up to 10% or more. This burdens working-class citizens, who spend a larger portion of their income on taxable goods, more than wealthier households.
  • Local Governance Weakened – State governments would have to take on greater budget duties, possibly leading to centralized decisions that fail to address specific local needs.

Rep. Anna Eskamani, a strong opponent of the property tax ban, stated clearly: “This is a terrible idea and a dangerous way to run a state.” Even conservative voices like Sen. Don Gaetz have questioned how services like education and fire protection could survive with unpredictable funding.

A single statewide solution could remove the adaptability many cities depend on for specific services.

house with elevated foundation and drainage system

How Flood Mitigation Is Changing Tax Talk in Florida

In response to the increasing risk of floods and hurricanes, many Florida homeowners have invested in flood mitigation plans like raising structures, installing waterproof materials, or upgrading drainage systems. But such improvements previously had an unexpected result: increasing the assessed value of homes, and by extension, property taxes.

A newly passed bill protects residents from this penalty, meaning that making your property more resilient won’t sharply increase your tax bill. While this may seem like a small technical change, it’s representative of a larger move toward making the tax system more fair and environmentally sound.

This bill also points out the involved connection between environmental resilience and taxation. As sea levels rise and risk from changing weather increases, Florida is likely to see more law connecting home safety investments to fair tax treatment.

senior man walking with cane in Florida yard

Aging Demographics and the Push for Relief

Florida’s population isn’t just growing—it’s aging. The state is attractive to Baby Boomers retiring from colder areas, and this trend has reached what economists call a “silver tsunami.” However, aging populations are more sensitive to set costs such as property taxes.

As healthcare, insurance, and general living costs rise along with taxes, elderly homeowners find themselves financially stressed. This population fact adds political urgency to the debate, as seniors are also one of the most active voting groups in Florida.

Rather than eliminate property taxes completely, some lawmakers propose specific solutions. These include:

  • Expanding homestead exemptions for seniors
  • Limiting yearly increases in tax assessments for those aged 65+
  • Offering deferral programs for low-income elderly households

These adjustments would keep core service funding while reducing pressure on some of the most at-risk residents.

National Comparisons: Lessons from Other States

Florida isn’t acting alone. Across the U.S., lawmakers are rethinking property tax structures. In states like Wyoming, Kansas, and Montana, proposals to limit property tax growth or apply exemptions for particular homeowner groups have become more popular.

However, the failed attempt in North Dakota gives a clear warning. On November 5, 2024, voters in North Dakota strongly rejected a ballot measure to eliminate property taxes. Despite support from anti-tax groups, opponents successfully argued that needed services like school districts and fire departments would be destroyed without this revenue source.

The situation in North Dakota is similar to concerns in Florida. Change sounds appealing until people consider the downsides, especially in public safety and education.

What Happens If Property Taxes Are Banned?

If Florida moves forward with this ban, likely through a 2026 ballot measure, the effects will go beyond homeowner wallets. Here are key things Floridians and observers should expect:

  • Constitutional Amendments – A ban would likely require structural legal changes at the state level, making removal or change difficult later.
  • New Tax Systems – Florida would need to strengthen or put in place new taxes. These could include increased sales taxes, tourist taxes, or new “local use” taxes.
  • Temporary Revenue Crisis – Budget gaps resulting from the change period may stop local government operations. Hiring freezes and cutbacks on services are a real possibility.
  • Shrinking Credit Ratings – Municipal bonds, often supported by property tax income, could lose value, harming the state’s financial standing.

Economic Impact on Florida Homeowners and Buyers

While the idea of eliminating property taxes may sound like good news for homeowners, the wider economic impact could include:

  • Lower public service quality
  • Increased sales taxes affecting everyday purchases
  • Lower neighborhood appeal due to worsening infrastructure
  • Lost confidence from homebuyers and investors due to instability

For homeowners, especially those with newly purchased properties, the savings on property taxes may not outweigh the loss of good services or wider cost-of-living increases.

Las Vegas skyline with clear blue sky

Insights from Steve Hawks: The Nevada Perspective

Las Vegas-based real estate expert Steve Hawks offers important understanding into why Florida’s uncertainty might send buyer interest elsewhere—particularly to Nevada.

Nevada currently has:

  • No income tax
  • Low, predictable property tax rates
  • Very little change on tax policy

These things make it one of the most attractive states for moving, especially for retirees, digital nomads, and investors seeking long-term asset security.

“People want things to be clear,” Hawks says. “Florida’s proposed changes are strong, but they bring in too many unknowns. Investors dislike surprises.”

Indeed, Hawks reports increasing movement from both California and now even Florida to Nevada’s stable markets. Influxes like these could change national housing trends if Florida’s property tax experiment fails.

Real Estate Investment in a Shifting Tax Situation

Investors see taxes in terms of ROI. Predictability and ease of managing costs are as important as the numbers themselves. While eliminating property taxes may seem to promise higher rental returns, unstable taxation and underfunded neighborhood services can lower the value of assets over time.

Markets like Nevada have very few surprises—a key point when thinking about long-term rental collections. On the other hand, Florida’s change plan, while new, brings in instability that could reduce investor interest or increase insurance and maintenance costs due to ignored infrastructure.

stack of coins in front of Florida and Nevada maps

Florida vs. Nevada: A Tax Strategy Comparison

Florida’s rethinking of property taxes shows a move away from traditional fiscal models. It might become a guide for modern tax systems—or a negative example of financial disruption.

Nevada continues to be a model of stable low-tax areas. Its mix of no income tax and low property tax offers predictability and security, something increasingly valued in a time of socioeconomic shifts.

As Florida homeowners and lawmakers debate major change, many will be watching, comparing, and possibly moving toward the more consistent path Nevada currently offers.

Conclusion: Change or Risk?

The push to ban Florida property taxes is very strong and also causes disagreement. While it speaks to real frustrations—rising tax bills, economic inequality, and government growth—it also creates serious risks that could hurt the very people it intends to help.

Lawmakers and voters must consider ideals against practical realities. Without a good replacement plan, the proposal may move costs rather than lower them. Until then, stable, low-tax states like Nevada remain the standard for homeowners and investors seeking financial clarity in a changing world.

References