A proposal now moving through the Florida Legislature could fundamentally reshape how local governments and schools are funded across the state.
Lawmakers have filed legislation and a proposed constitutional amendment that would significantly limit—or potentially eliminate—property taxes for counties and school districts, replacing that revenue with higher sales taxes and related surcharges.
If approved, the plan would represent one of the most sweeping tax restructurings in Florida’s modern history.
What the Proposal Would Do
At its core, the proposal seeks to repeal and replace property taxes that currently fund a substantial share of local government operations, including schools, law enforcement, fire protection, infrastructure, and municipal services.
Under the plan:
Counties and school districts would be prohibited from collecting certain property taxes, particularly those tied to homesteads.
Local governments would be authorized to raise the sales tax rate from the current 6% to as high as 9%.
One-third of all proceeds collected from the new sales tax would be dedicated to the Florida Education Finance Program (FEFP), the primary mechanism for funding K–12 public schools.
A 5% property sales surtax would also be implemented to help offset revenue losses.
The proposal would require legislative approval followed by voter approval, with at least 60% of voters statewide needing to support the constitutional amendment for it to take effect.
The legislative session where this proposal will be debated begins January 13, 2026.
Why Property Taxes are Being Targeted
Property taxes have long been a political pressure point in Florida, particularly as home values have risen sharply in many regions. Because property taxes are based on assessed value rather than income, they can be especially burdensome for retirees, seniors on fixed incomes, and long-time homeowners whose property values have increased faster than their earnings.
Governor Ron DeSantis and legislative leaders have previously floated ideas such as:
A $500,000 homestead exemption
A potential $1 million exemption for seniors
Caps on annual assessment increases
An aspirational goal of eliminating property taxes on homesteads entirely
Supporters argue that reducing or eliminating property taxes would improve housing affordability and allow residents to remain in their homes without facing rising annual tax bills.
The Funding Gap Question
Policy analysts and fiscal experts largely agree on one point: eliminating property taxes creates a significant funding gap.
Property taxes make up a major portion of local government revenue.
Removing them without replacement would leave counties, municipalities, and school districts without stable funding streams.
The proposed increase in sales taxes and surtaxes is designed to fill that gap.
However, economists note that sales taxes function differently than property taxes.
While property taxes are relatively predictable and tied to local services, sales taxes fluctuate with consumer spending and tend to place a higher proportional burden on lower-income households.
Think tanks that have reviewed the proposal warn that even a 9% sales tax may not fully replace lost property tax revenue in some areas, potentially requiring service cuts or additional future tax adjustments.
Impact on Residents and Businesses
The effects of the proposal would vary depending on a resident’s circumstances:
Homeowners with high assessed values could see substantial tax relief.
Renters would not directly benefit from homestead exemptions but would still pay higher sales taxes.
Visitors and tourists would contribute more through consumption taxes.
Local governments would face new budgeting challenges as revenue sources shift.
School districts, in particular, would become more dependent on statewide sales tax distributions rather than locally generated property tax revenue.
What Happens Next
Before voters ever see the proposal on a ballot, it must pass through the Florida Legislature.
If lawmakers approve the constitutional amendment, it would then appear on a statewide ballot, where 60% voter approval is required.
Between now and then, fiscal modeling, public hearings, and political debate are expected to intensify.
The proposal raises fundamental questions about tax fairness, local control, and how Florida funds essential public services.
Bottom Line
The effort to repeal and replace property taxes reflects growing concern over housing costs and tax burdens—but it also introduces complex tradeoffs.
Any shift of this scale would reshape how Floridians pay for schools, infrastructure, and local government for decades to come.
As lawmakers prepare for the 2026 session, the central issue is no longer whether property taxes are unpopular, but whether the proposed alternatives can reliably and equitably replace them.
Homestead??, Hold My Beer: DeSantis’s Step-By-Step Plan to Make Property Taxes Vanish (Maybe)
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Sources summary:
Florida legislative proposal and constitutional amendment filings regarding property tax repeal and sales tax increases; statements and policy positions attributed to Gov. Ron DeSantis; analysis from fiscal policy organizations and public finance experts on funding gaps created by eliminating property taxes; Florida Education Finance Program (FEFP) funding structure; Florida legislative calendar for the 2026 session.
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