What Tallahassee's property tax overhaul could cost South Florida governments
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Aïda Amer/Axios
South Florida counties stand to lose hundreds of millions in tax collections if property tax changes advancing in the Legislature become law, according to a report by the Florida Policy Institute (FPI).
Why it matters: Property taxes, collected by cities, counties and school districts, fund critical infrastructure and services, including law enforcement, parks maintenance, social services and schools.
The latest: On Thursday, the House passed HJR 203 mostly along party lines, which would phase out non-school property taxes on permanent primary residences between 2027 and 2037, adding $100,000 in homestead exemptions each year until they're gone.
- Critics of the bill say it will hurt law enforcement and social services.
Between the lines: The House and Senate have to agree on the proposals for it to go before voters in November.
State of play: Two additional amendments remain on the calendar for floor votes.
- HJR 209 would increase the existing homestead exemption of $25,000 by $200,000 for those with comprehensive homeowners insurance. About 83% of homeowners would qualify, per FPI.
- HJR 213 would shift property tax assessments by counties and cities from annual to every three years, with increases capped at 3% for primary residences and 15% for other properties.
By the numbers: Of the three, HJR 203 carries the steepest price tag — about $13.3 billion a year in recurring losses for local governments statewide, according to the report.
- Miami-Dade County would see nearly $1.5 billion in recurring losses, with Broward County at $1.6 billion.
- HJR 209 would result in $8.6 billion in recurring losses statewide; Miami-Dade would lose $883 million, and Broward $950 million.
- HJR 213 would be the least costly of the three at $5.3 billion statewide; Miami-Dade County would lose about $952 million and Broward $512 million.
What they're saying: FPI acknowledged in its report that the resolutions would result "in reduced property taxes for some homeowners who are struggling to afford the basics."
- But it would also come at a cost to low- to moderate-income households because local governments may cut services or increase "other more regressive taxes" to offset revenue losses.
What's next: Amendments passed in the House will go to the Senate, which could assign them to committees or let them die.