Florida’s real estate landscape may soon undergo a significant shift as the state’s House has advanced an amendment to the HJR 203 bill, aimed at rolling back property taxes on homesteaded properties starting January 1, 2027. This development comes as a surprise to many residents, lawmakers, and experts who have been closely monitoring the state’s taxation policies. The proposal, supported by Governor Ron DeSantis, aligns with an ongoing goal to achieve “zero tax” status for homesteaded properties.
The implications of HJR 203 are noteworthy, as it plans to effectively eliminate city and county property taxes for homesteaded properties while still requiring homeowners to pay a fraction of their total bill in school taxes, estimated at about 35% to 50%. While this translates into a potential up to 50% reduction in property tax bills, the amendment’s accelerated timeline—removing an initially proposed 10-year phased-in approach—offers a quicker path to these savings for homeowners, contingent on approval from 60% of voters in the upcoming 2026 midterm elections.
Industry stakeholders, such as OneWorld Properties President and CEO Peggy Olin, have expressed cautious optimism regarding the prospect of tax reform, emphasizing the need for a balanced approach. Olin noted that Florida’s success hinges not only on low taxes but also on quality infrastructure and services. “Confidence in the state’s long-term stability matters just as much as any short-term savings,” Olin explained, stressing that homeowners require both relief and continued support for essential services.
Despite the positive outlook, concerns have emerged regarding potential revenue shortfalls that could arise from these tax cuts. State economists warn that the plan could create a $14.8 billion deficit for local governments annually, leading critics to speculate that funding gaps may compromise public safety, including staffing levels for police and fire services. Notably, the bill includes a provision mandating cities to maintain police funding at 2024-2025 levels, regardless of any loss in property tax income, which is aimed at mitigating these concerns.
Olin emphasized that even with a significant tax cut, local governments often find creative ways to address funding shortages, typically through increased fees, assessments, or broader consumption taxes. “The real question will be whether homeowners truly experience net relief or if costs simply get redistributed,” she stated.
Debate continues over whether the elimination of property taxes could inadvertently drive up home prices, as buyers might leverage increased purchasing power to purchase more expensive homes. Olin noted that while supply constraints in areas like South Florida could lead to price adjustments, factors such as migration trends and global capital play a more pressing role in shaping property values. “Buyers aren’t moving to Florida solely because of property taxes; they’re attracted to lifestyle and economic opportunities,” she remarked.
Discussing the bill’s potential beneficiaries, Olin observed that higher-value homeowners are set to see significant savings due to the scaling of property taxes with property valuations. However, she also highlighted the emotional relief it could bring to retirees and middle-class families with fixed incomes who have faced rising assessed values. For these groups, the tax relief may represent a crucial lifeline amid escalating housing costs.
As Florida navigates its path toward property tax reform, questions remain about the long-term implications for homeownership, affordability, and the overall housing market in the Sunshine State. Stakeholders are keenly watching how these proposed changes will unfold and what they mean for the future of Florida’s residents and its real estate landscape.
