Florida is considering ditching its property taxes after they've nearly doubled for homeowners in the last decade. It's a bold idea that could ultimately go before voters.
Forking over the money for property taxes can be painful for working families and retirees. State lawmakers right now are looking at a plan to get rid of property taxes in Florida. Lee County property appraiser Matt Caldwell is suggesting a plan to increase the homestead exemption, which is available to full-time Florida residents.
Alexis Mendoza lives in Fort Myers, said it is tough to make ends meet.
“You're just trying to live and get through the first 24 hours and figure what you're going to do for the next,” Mendoza said.
She and other homeowners are struggling to survive.
“People are already struggling financially in this economy with just maintaining childcare, keeping groceries in the home,” she said.
HB 852 studies eliminating property taxes and it could bring relief to many.
“The cost of living compared to what people make financially is absolutely not aligned whatsoever,” Mendoza said.
The pandemic-driven home-buying boom raised home values and increased property taxes, and Gov. Ron DeSantis said he thinks people need relief from property taxes.
However, a Florida Policy Institute study says eliminating property taxes would increase sales taxes from 6% to 12%.
Greg Boyd owns an older home on McGregor Boulevard in Fort Myers and believes a 12% sales tax would be too significant for most people.
The governor suggested more taxes for tourists.
“I don't want you taxing Florida resident’s property. I tax the tourists, tax some of the foreigners,” DeSantis said recently.
Boyd supports increasing the average $50,000 homestead exemption he and others received.
“The Homestead Act should be increased as opposed to sales tax, which would be applied to all,” Boyd said.
Caldwell said the original Homestead Act passed in 1934 provided a $5,000 benefit when the average home was only about $4,500. He says the homestead exemption has not been updated.
“Even today, with the $50,000 homestead on the average home of $350,000 or $450,000, it's just not the same benefit it was when it was originally passed,” Caldwell said.
He is calling for a big increase to save homeowners money.
“It needs to at least go to $100,000 or $120,000 up from the current $50,000,” Caldwell said.
That is a matter that would ultimately have to be put on the ballot for voters in 2026.
Full-time residents of Florida can apply for the homestead exemption either in person at the property appraiser’s office or online.