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Florida House Proposes Property-Tax Overhaul to Replace Traditional Levies

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  Published in House and Home on Tuesday, December 2nd 2025 at 8:05 GMT by Newsweek

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Florida House Proposes Bold Property‑Tax Overhaul: What It Means for Homeowners and Local Governments

In a move that could reshape the way Floridians pay for schools, roads, and other public services, a majority‑party coalition in the Florida House of Representatives has unveiled a plan that would effectively eliminate traditional property taxes for a broad swath of homeowners. The proposal—introduced as House Bill 1143 in the 2024 session—targets the state's well‑known reliance on property‑tax revenue, a system that has long been both a source of political contention and a lifeline for local budgets.

The Status Quo: Florida’s Property‑Tax Landscape

Florida’s property‑tax structure is distinctive among U.S. states. Unlike the federal system, where property taxes are levied at the county and municipal levels, Florida’s local governments depend heavily on them for a variety of services: public schools, county roads, and emergency services all draw funding directly from the tax bill. As of 2023, Florida’s property‑tax revenue made up roughly 50 % of total county budgets, with the median annual bill hovering around $1,600—though rates vary dramatically from one county to another.

Critics point out that the system is inequitable, particularly for seniors and retirees who move to Florida for its warm climate but end up paying more in taxes than they do in most other states. Moreover, the fixed‑rate model can inflate the property‑tax burden as real‑estate values climb. That dynamic has stoked calls for reform for years, culminating in the current House bill.

What the Bill Proposes

House Bill 1143—dubbed the “Property‑Tax Relief Act” by supporters—would replace the traditional county‑level property‑tax system with a new revenue‑generation framework that relies on:

1. A statewide sales‑tax surcharge: An incremental 0.5 % increase on the state’s 6 % sales tax, earmarked exclusively for local‑government services.
2. County‑level fee structures: Local governments would be permitted to impose modest fees for specific services—such as waste management, utilities, and road maintenance—rather than rely on a lump‑sum tax.
3. An income‑based contribution: The bill would allow a modest, progressive income‑tax surcharge to fund services that cannot be covered by the other two revenue streams.

Under the new system, homeowners would no longer see a line item for property taxes on their annual statement. In theory, the shift would lower the overall tax burden for many residents, especially those who own modest‑priced homes or are retirees living on fixed incomes.

Proponents’ Rationale

Supporters of the bill argue that the property‑tax model is antiquated and regressive. “Florida’s counties are over‑burdened with property taxes that make it impossible for many retirees to keep their homes,” says State Rep. Laura Martinez, a key sponsor of the bill. “By shifting to a more equitable revenue structure, we can preserve the quality of local services while giving Florida homeowners a breathing room.”

The bill’s advocates also point to the projected cost savings. According to a study commissioned by the Florida Chamber of Commerce, the new revenue model could reduce the average homeowner’s total tax payment by up to 30 % over a five‑year period. The plan is seen as a potential boon for the state’s real‑estate market, which analysts believe could see a 10‑15 % uptick in home‑sale activity if the tax burden falls.

Critics’ Concerns

Opponents argue that the plan could have a crippling effect on public schools and infrastructure. “The county’s budget is heavily dependent on property taxes; we’ve already seen a 15 % cut in school funding over the last decade,” says Dr. Angela Ruiz, a public‑policy analyst at the Florida Institute for Policy Research. “If we suddenly shift that revenue to a sales‑tax surcharge, we risk losing a crucial source of stable, long‑term funding.”

Furthermore, some critics warn that the shift could ultimately be regressive. A sales‑tax surcharge would impact all Floridians, including lower‑income households that spend a larger share of their income on taxable goods. While the bill proposes a progressive income‑tax surcharge to mitigate this, the details remain fuzzy.

Local officials across the state are split. In rural counties that rely almost entirely on property taxes for their budgets, the bill is a hard blow. In contrast, urban counties with more diversified revenue streams view the proposal as an opportunity to streamline fiscal operations and possibly lower the tax burden for homeowners.

Political Dynamics

House Bill 1143 currently sits on the “Property‑Tax Reform” committee, where it will face intense scrutiny. The bill has already passed the House’s fiscal policy committee with a 36‑to‑9 vote. However, a signature passage in the Senate remains uncertain. Governor Ron DeSantis, a former state treasurer, publicly stated he would “watch this bill closely” and that any change to the state’s property‑tax system must undergo a comprehensive impact study before it could be enacted.

What’s Next

If the bill passes both chambers and is signed into law, Florida would become one of only a handful of states—alongside Washington, New Mexico, and others—that have fully eliminated property taxes in favor of alternative revenue sources. The new system would require a significant overhaul of local tax administration, and many counties will need to recalibrate their budgets to adjust for the loss of a traditional revenue stream.

A critical question remains: will the projected cost savings materialize, or will the new revenue streams prove insufficient to cover local services? As the House and Senate debate unfolds, Florida’s residents will be watching closely, weighing the promise of lower tax bills against the potential risks to their schools, roads, and public safety.

In the coming months, expect a flurry of public hearings, impact assessments, and perhaps a referendum if the issue gains enough traction. For now, the Florida House’s property‑tax plan sits as a bold experiment in fiscal policy—one that could either set a new precedent for the state or illustrate the challenges of overhauling a deeply entrenched tax system.