Report: Eliminating property taxes would have cost Tampa Bay billions this year
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Eliminating property taxes would have cost Tampa Bay's two largest counties a total of $2.3 billion in 2025 revenue, according to a report by the Florida Policy Institute released this week.
Why it matters: Members of a state House select committee have been in Tallahassee this week, weighing how to cut property taxes while maintaining certain public services.
- It's a top goal of Gov. Ron DeSantis that he says would bring relief to Floridians.
Threat level: Property taxes are collected by cities, counties and school districts and fund critical infrastructure and services, ranging from law enforcement and parks maintenance to social services and schools.
What they're saying: "Waste is in the eye of the beholder," Casey Cook, the Florida League of Cities' chief of legislative affairs, told lawmakers Tuesday, per the Florida Phoenix.
- "Nobody likes paying taxes, but safe isn't free. Clean isn't free."
Between the lines: Local governments are also facing more scrutiny from the state due to DeSantis' take on President Trump's Department of Government Efficiency.
- The state DOGE has requested scores of documents from city and county governments and has sent auditors in person to some communities, including St. Petersburg and Miami.
- The results of those audits haven't been released yet.
The big picture: Doing away with property taxes could cost local governments across the state a combined $50 billion in revenue, the report found.
- A narrower approach of eliminating property taxes for homesteaded properties would leave counties, cities and districts out approximately $18.5 billion.
- Homesteaded properties — in other words, a property owner's primary residence — are already eligible for property tax discounts.
Zoom in: Property taxes will generate about $1.47 billion this year for Hillsborough County government, $963 million for schools, and $421 million for the county's three cities: Tampa, Temple Terrace and Plant City.
- Pinellas would lose $831 million, plus $846 million for schools and $545 million for the county's 24 municipalities.
Reality check: Taxes in the Sunshine State are some of the most regressive in the country, with the lowest-income households spending the greatest proportion of their income on state and local taxes.
What's next: Any changes to the property tax structure would have to be approved by Floridians through a constitutional amendment.
- House committee co-chair Rep. Toby Overdorf (R-Palm City) said he expects a final proposal for such a ballot initiative to be ready by November, according to Politico.
- The ballot plan would require House and Senate approval and state Supreme Court sign-off on the language. Then, 60% of voters would have to approve it.