Gov. DeSantis property tax plan could shift costs to SWFL shoppers

FORT MYERS, Fla. (WINK)— Gov. Ron DeSantis has proposed eliminating property taxes in Florida, but an economist says the money to fund local services would still need to come from somewhere.

On Wednesday, WINK News spoke with Florida Gulf Coast University economist Dr. Amir Neto about the governor's "Save Our Homes" proposal and what it could mean for local funding.

Fire departments, law enforcement, parks and roads all rely on property taxes to stay funded.

When asked where that money would come from, Neto said local governments would be on the hook.

"They are required to continue to be funded by local governments. Local governments will need to find money to fund them," Neto said.

He says it is not just a matter of finding that money but making it up somewhere else.

"Which means creating taxes elsewhere, so it will either be on sales or income... if property tax is eliminated, the only other potential taxing mechanism would be sales," Neto said.

In Southwest Florida, sales tax ranges from 6% in Collier County to up to 7.5% in Hendry County.

While the property tax exemption could save homeowners money, Neto warns it may still hit people in other ways.

"If local governments decide... to have to increase sales taxes or add on fees... that fee is proportional across the board... so this means that the cost of groceries, for example, or the cost of pumping your gas, etc. that now becomes more expensive to everyone, but the lower income has less disposable income to begin with, so they get hit harder," Neto said.

If the governor signs the proposal and voters approve it, property taxes would not disappear all at once.

DeSantis said at a press conference that the change would happen in phases, with 60% of homeowners impacted in the first phase.