Property Taxes

Property Tax Debate Still Unresolved

Last session, the Governor, House Speaker, and Senate President had all stated that they wanted to significantly lower property taxes, including the possibility of eliminating/replacing them. The House is the only one to release property tax legislation.  In fact it released eight proposals. Late in the session, the Governor said that he is working with the Senate on a proposal, but nothing happened this session. The Governor has mentioned the possibility of a special session on property taxes.

Helping guide the Legislature towards a proposal that is best for Florida taxpayers is one of Florida TaxWatch’s top priorities for this session. Prior to session, we released the report Save Our Taxpayers – Property Tax Relief Must be Accomplished Equitably, providing the Legislature with recommendations on how to provide meaningful and equitable property relief/reform.

This follows our September 2025 report Options to Eliminate or Reduce the Property Tax Burden on Florida Homeowners and the new edition of How Florida Counties Compares, which is full of data taxpayers, legislators, and local officials can use to see how their county compares to the rest of the state on property taxes, city and county revenue and expenditures, and much more.

Elimination of Non-School Homestead Property Taxes

The House approved a proposed constitutional amendment (HB 203) for the November 2026 ballot that would eliminate all non-school property taxes on homestead properties. The bill that came to the floor proposed a 10-year phase out, but it was amended to a full, immediate repeal. If the amendment made it to the ballot and was approved by the voters, taxpayers would save, and local governments will lose, $14.7 billion, by far the largest tax cut in Florida’s history. The Senate never put forward a property tax proposal.

Florida TaxWatch supports significant property tax relief but we have concerns about this proposal’s impact on taxpayer equity. It will increase the multi-billion-dollar tax shift from homestead properties to renters, businesses and first-time homebuyers that our property tax system already creates. There are also equity concerns for local governments, the degree to which they rely on property taxes to fund services varies considerably.

Other Property Tax Bills that Advanced

PASSED THE SENATE 

Assessment of Wind Resistance Improvements – SB 434 would prohibit increasing the assessed value of residential property based on improvements made to enhance wind resistance. SB 434 passed the Senate in Week 6.

Accessory Dwelling Units (ADUs) – SB 48 would have prohibited denial of a homestead property tax exemption solely because a property contains an ADU and requires separate taxation if the ADU is rented. The bills also required local governments to allow ADUs in single-family residential areas. SB 48 passed the Senate in Week 4.

Disclosure of Estimated Taxes – SB 856 would require online property listings to include estimated ad valorem taxes, rather than displaying the current owner’s taxes, to give prospective buyers a more accurate picture of future tax liabilities. Florida TaxWatch supports this overdue change because Save Our Homes often make a property’s tax current tax bill much lower than it will be when the home is sold and reassessed without having accrued any SOH benefit. SB 856 was approved by the full Senate in Week 7. The House did not take it up but the House tax package (HB 7031) also contained this good provision.

DIED IN COMMITTEE

HB 6027 Would have allowed homeowners to transfer the accrued Save Our Homes benefit to a new homestead from any homestead property they abandoned in the preceding three years, rather than only the accrued benefit from the immediate prior homestead. This bill stalled in its last committee, but it was also in the House tax package (HB 7031).

SB 450 would have increased the transferable ad valorem tax exemption for surviving spouses of certain disabled veterans and first responders from 100 to 120 percent of the most recent tax roll amount. The bill passed one committee.

SB 1520 would have amended the Live Local Act’s “Missing Middle” property tax exemption opt-out provision to provide that an exemption may be granted to a project that received final site plan approval within 1 year before a taxing authority opted out and may continue receiving the exemption after the opt-out. The bill passed one committee.

PROPERTY TAX PROVISIONS REMOVED

HB 755, which passed, extends funding of $5 million annually from the Florida Forever Trust Fund for land acquisition within the Florida Keys Area of Critical State Concern to fiscal year 2035-2036. The original bill also loosened eligibility criteria for the Live Local property tax exemption for affordable housing properties in that area (ten or more affordable units reduced to one or more). HB 755 passed but the property tax exemption was removed.

NEVER MOVED

SB 272 would have provided a 100 percent exemption from property taxes (excluding school district levies) for seniors that have lived in the home for five years and have household income of no more than $350,000.

SJR 274 would have prevented any increase in assessed homestead value after 20 continuous years of ownership and residency and grant a new 50% homestead tax exemption, excluding school district levies, for owners residing on their property for 30 years or more.

SJR 278 would have limited the assessed value of new homestead property that was under $500,000 before a change of ownership to no more than 150% of the previous year’s assessed value.

SJR 282 would have provided commercial real property owned by small businesses with a benefit equal to Save Our Homes, limiting annual increases in the assessed value to 3% or inflation, whichever is lower.

SB 286 would have established a new formula for assessing changes, additions, or improvements valued under $100,000 by applying the ratio of the property’s assessed value to its just value. It would exclude from the new formula any changes, additions, or improvements that replace most of the property or increase total square footage by more than 25%.

SB 550/HB 1277 would have prohibited levying ad valorem taxes on tangible personal property.

HJR 787 would have removed the authority of counties and school districts to levy ad valorem property taxes. HB 791, contingent on the passage of HJR 787, would have replaced lost revenue to school districts by increasing the state sales tax from six percent to nine percent. The revenue for counties would be replaced by a five percent documentary stamp tax surcharge.

HJR 793/SJR 1210 would have authorized the Legislature to exclude inherited homestead property transfers from being treated as changes in ownership for property tax assessments, allowing the inherited property to keep any accrued Save Our Homes benefit.

HB 799/SB 932  would have required the Legislature to appropriate funds to fiscally constrained counties to offset ad valorem tax revenue reductions resulting from a future constitutional amendment.

HJR 903 would have reduced the maximum annual increase in assessed value of nonhomestead properties from 10 percent to 3 percent.

HB 957 would have limited homestead tax payment deferrals to properties valued at $1 million or less and increase the minimum value of tax certificates for public sale from $250 to $500.