BY MARK J. CRAWFORD
Florida Gov. Ron DeSantis and Republican legislators are pushing for a dramatic overhaul of the state’s tax system by eliminating property taxes altogether, replacing the lost revenue with budget cuts and a higher sales tax.
The proposal, which would make Florida the only state without property taxes, concerns local governments which rely on the revenue to provide essential services.
Supporters of the plan argue that eliminating property taxes would provide homeowners with much-needed financial relief, particularly as housing costs continue to rise.
To offset the loss of revenue from property taxes — which fund schools, law enforcement and emergency response — the proposal includes a significant increase in the state sales tax, which currently stands at 6%. While the exact increase has not been finalized, estimates suggest it could rise to 10% or higher.
Critics point out that sales taxes are more regressive than property taxes, disproportionately impacting low- and middle-income households by driving up the cost of everyday goods.
The proposal could leave cities and counties scrambling to recover the lost revenue to pay for police, fire departments, schools and infrastructure.
Starke Commissioner Bob Milner was one of many local officials in Tallahassee in the past couple of weeks advocating on behalf of residents, local governments and other community agencies.
“As usual, smaller cities and those of us in North Florida are victims of South Florida’s growth,” he said. “Their insurance rates and property taxes have gone up substantially since the 2008 debacle.”
Except for a couple of growing counties, North Florida hasn’t experienced this, Milner said.
“I understand why the folks in South Florida are raising heck, but the 37 counties that are rural or smaller are still struggling just to meet public safety needs since our total ad valorem will not even cover police and fire.”
While the proposal has gained traction among conservatives who favor tax reductions and smaller government, it could face an uphill battle in the legislature. Some moderate Republicans have expressed hesitation about the long-term implications, while Democrats have vowed to fight the measure.
