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Florida House dives deep as property tax overhaul begins in earnest

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  Published in House and Home on Tuesday, September 23rd 2025 at 6:57 GMT by Tallahassee Democrat
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Dollars and Sense: Florida House Takes First Steps Toward a Comprehensive Property‑Tax Overhaul

Published September 23, 2025 – Tallahassee

For decades, Floridians have watched as property taxes—one of the state's primary revenue sources—grow faster than incomes, particularly in rapidly expanding metro areas. Now, after months of debate and negotiation, the Florida House of Representatives has officially begun work on a sweeping reform of the state’s property‑tax system. The move is framed as “dollars and sense”: a promise that the overhaul will both balance county budgets and protect homeowners from an escalating tax burden.

The House Action

On Wednesday, the House adopted a bipartisan resolution that sets the stage for the Florida Property Tax Reform Act of 2025 (HB 2123). The resolution, passed by a 71‑to‑3 margin, authorizes the House Committee on Finance to draft a comprehensive bill that will address several long‑standing grievances:

1. Assessment Caps – The current system allows property values to increase by as much as 10 % per year in some districts. HB 2123 proposes a cap of 5 % for residential properties and 7 % for commercial properties, with the possibility of a “roll‑over” mechanism that lets local governments retain a portion of the additional revenue for specific services.
2. Assessment Methodology – The new bill would mandate that all assessments be based on fair‑market value determined by a single statewide algorithm, rather than local appraisals that can vary widely between counties.
3. Exemptions and Relief – Existing homestead and disabled‑person exemptions would be preserved, while the bill would add a new exemption for seniors over 80 who own homes valued under $400,000.
4. Revenue‑Sharing Formula – A critical component is the overhaul of the County‑to‑County Revenue Sharing system. Under HB 2123, the formula would be updated to consider not only property values but also the population and tax‑exempt land in each county, aiming to distribute revenue more equitably.

The House resolution also calls for a public hearing to be held on October 12 in the House’s Committee on Finance chamber. Residents, local officials, and industry representatives are invited to testify and submit written comments on the proposed changes.

Political Context

The property‑tax debate has been a hot‑button issue across Florida for years, but it reached a tipping point in 2024 when the state’s Homeowners’ Association of Florida (HAF) released a report stating that the median Florida homeowner’s property‑tax bill had risen by 4 % in the last year, outpacing the median state income growth of 1.8 %. HAF’s leadership urged the legislature to act, arguing that unchecked assessment increases were eroding Florida’s attractiveness to retirees and young professionals.

Senator Maria Lopez (D‑Miami) — who co‑sponsored the House resolution — explained that the bill is a “necessary recalibration” of a system that has “long been out of sync with the realities of today’s market.” “We can’t keep letting our counties decide how to value a home without a clear, state‑wide standard,” Lopez said. “If we want to keep Florida competitive and fair, we have to make sure every taxpayer is evaluated on the same playing field.”

On the other side of the aisle, the Florida Taxpayers’ Alliance (FTA) cautioned that the proposed cap could reduce local revenue streams critical to schools and infrastructure. “County budgets rely heavily on property‑tax receipts,” said FTA president Jim Hart. “We need a plan that protects taxpayers, but we can’t sacrifice the services our communities depend on.”

How the Reform Works

A key feature of HB 2123 is the “assessment recalibration” that would reset property values to a uniform baseline each year. Under the new algorithm, property assessments would be adjusted to reflect market trends as well as location‑specific factors like proximity to schools, parks, and public transit. The goal is to reduce the disparity between high‑value urban areas and lower‑value rural counties that currently see a 30 % gap in assessment ratios.

The bill also includes a “property‑tax audit program” that would give the Florida Department of Revenue the authority to audit up to 1 % of assessments each year. These audits aim to catch misvaluations and ensure compliance with the new formula. The Department would then issue corrections and redistribute any over‑ or under‑assessed amounts back to the appropriate counties.

Impact on Local Governments and Homeowners

County officials have expressed cautious optimism. “A fairer assessment system could free up resources for essential services,” said County Commissioner Linda Torres of Seminole County. “But we need clear guidance on how the revenue‑sharing formula will be recalculated.”

For homeowners, the biggest immediate benefit will likely be the assessment cap. In high‑value markets such as Palm Beach and Miami-Dade, homeowners who paid over $5 million for their homes could see their property‑tax bills rise by a maximum of 5 % instead of the current 8–10 %. The new senior exemption could also relieve up to 10 % of taxes for eligible retirees.

Opponents, however, warn that the revenue‑sharing changes could lead to budget shortfalls in counties that already struggle with high tax burdens. “We don’t want to create a system where one county pays for the inefficiencies of another,” said FTA’s Hart.

Next Steps

The House’s resolution is only the first of many steps. HB 2123 will be drafted and sent to the Senate Finance Committee for review. Senators will likely hold their own hearings, and there could be a range of amendments from both sides. If the Senate passes the bill, it will go to the Governor’s desk. Governor Rios has publicly stated her support for “a balanced, fair, and fiscally responsible property‑tax system,” but she has also called for a “rigorous review” before signing any final legislation.

The final vote could take place in early December, with the legislature’s fiscal year beginning on July 1. If the bill passes, the new assessment algorithm will take effect on January 1, 2026. Until then, the public is encouraged to submit comments through the House’s online portal or attend the upcoming public hearing.

A Broader Picture

Property‑tax reform is part of a larger trend in Florida toward “dollars and sense”—a bipartisan approach to budget management that emphasizes both revenue efficiency and taxpayer fairness. Other policy proposals under consideration include a revision of the state’s education funding formula and a new county‑based infrastructure bond program. Together, these measures aim to stabilize Florida’s finances without sacrificing the services residents rely on.

In the coming weeks, the Florida House’s progress on the property‑tax overhaul will be closely watched by homeowners, county officials, and lawmakers alike. Whether the House’s ambitious plan can navigate the complex web of local interests and fiscal realities remains to be seen. One thing is certain: the conversation about how we value a home—and what that means for a county’s budget—is entering a new, more transparent chapter.