Florida Lawmakers Consider Replacing Property Taxes With Alternative Revenue Sources
A legislative committee in Tallahassee is examining whether Florida should move away from property taxes as the primary source of local government funding. The Florida House Property Tax Select Committee is reviewing how revenues are collected and utilized at the county and municipal levels, with discussions focusing on schools, emergency services, and rural communities.
Property taxes are established under the Florida Constitution as the main funding source for local governments. Lawmakers are preparing to place a constitutional amendment on the November 2026 ballot that would ask voters whether they want to eliminate property taxes in favor of other funding streams, such as an increase to the state sales tax, which currently stands at 6 percent.
The proposal has divided policymakers and local officials. Supporters argue that homeowners are struggling with rising property tax bills, while opponents warn that local governments depend on these revenues for essential services, such as public safety, education, and infrastructure.
Governor Ron DeSantis has pledged that services such as police, firefighters, and schools would remain funded under any revised system. Meanwhile, gubernatorial candidate and U.S. Representative Byron Donalds has argued against raising the sales tax, suggesting instead that Florida raise the homestead exemption from $50,000 to as much as $400,000 and apply exemptions more broadly to school district taxes.
Lawmakers are also reviewing audits of a dozen municipalities, which the state’s chief financial officer has said identified nearly $400 million in questionable spending. Supporters of reform point to these findings as evidence of inefficiencies that could be addressed alongside tax changes.
In Manatee County, property appraiser Charles Hackney noted that property values have climbed an average of about 8 percent annually over the past eight to nine years, with taxable increases capped at 3 percent for homesteaded properties. Still, he emphasized that property taxes currently generate significant funding for local governments, citing collections of $1.26 billion in 2024, up from $855 million in 2021.
The committee is expected to continue its hearings on Tuesday, with legislators weighing whether voters should ultimately decide on the future of Florida’s property tax system.
