Florida renters could bear the burden of DeSantis tax plan
As Florida Governor Ron DeSantis says he'll no longer campaign for his proposed constitutional amendment to eliminate property taxes on owner-occupied homes (homesteads), cities and counties are bracing for staggering budget cuts.
The property tax plan would raise the homestead exemption cap from $50,000 to $250,000.
According to an article by WLRN Public Media, renters are at risk. If counties and municipalities raise taxes on non-homesteaded properties (such as apartment and business rentals) to cover budget shortfalls, landlords might defray the increase by raising rents for commercial and residential tenants.
Upset and confusion
In an article in the Palm Beach Post via Yahoo! News , Fort Lauderdale Mayor Dean Trantalis said the legislature ignores issues that the people of Florida want addressed, such as affordable housing and education.
Additionally, a fact-checking report from WLRN says it's unlikely there's public data to support the governor's claim that the plan would eliminate property taxes for 60% of Florida homeowners.
Critics blast the amendment, saying it does not clearly communicate potential consequences for taxpayers, particularly for renters and new residents.
Supporters say the tax cuts could put as much as $4000 per year back in homeowners' pockets, make housing more affordable, bolster Florida's economy and encourage permanent residency.
Confusion is deepened by initial secrecy surrounding the amendment and DeSantis' failure to communicate clearly and effectively the longterm effects of homeowner tax cuts on counties, cities and individual Floridians.
What this means for Highlands County's small towns
An article in the Highlands News-Sun, reports that the Lake Placid Town Council discussed potential measures to finance vital city services in the event the amendment passes. Among the measures are tax levies on water, electricity and gas, increasing local business taxes and charging user fees for parks and special events.
In reality, county and city leaders say the proposed amendment could increase municipal taxes across the board for non-homeowners and homeowners alike.
Will homeowners really save money?
It's hard to know if the tax break will equal more money in homeowners' pockets as counties, cities and towns will have to find creative ways to fund community services. One idea floated by Lake Placid Town leadership is employing ad-valorem taxes that would shift service costs to the properties that benefit from them.
The South Florida Sun Sentinel reported that DeSantis has backed away from the amendment, saying he wouldn't campaign for it because it wasn't exactly what he wanted.
The sticking points were school funding and some emergency services.
While the legislature approved part of the amendment, they balked at applying the tax exemption to property taxes that fund Florida schools. During the legislature's special session, Panama City Republican Sen. Jay Trumbull said, “I, for one, can’t support removing billions of dollars from public education today."
What's next?
60% of Florida voters must vote to pass the amendment in the November election.
Florida Republicans passed the 60% majority requirement 20 years ago; the GOP's amendment is now poised to test it.