Jacob Ogles
As Florida leaders debate how to cut taxes, Republicans agree they want to reduce property tax burdens. But what would the impact of broad slashes be on local government?
Kurt Wenner, Florida TaxWatch’s Senior Vice President of Research, presented a study at the organization’s Spring meeting that looked at what cuts would be felt the most, and where.
He said the $55 billion raised in Florida through property taxes is “by far the biggest tax source” for the state. That’s partly because property values — and in turn, generated revenues — have surged. The revenues raised have gone steadily up, particularly since 2021, for county governments and school districts, according to the Florida TaxWatch analysis.
At the same time, the rates charged by various local governments are shifting downward.
“People don’t realize that statewide, the average millage rate falls almost every year,” Wenner said. “It has for some time.”
Yet leaders in Tallahassee appear ready across the board to force cuts. Gov. Ron DeSantis has pushed for $1,000 rebates to homesteaded property owners. Legislative leaders, meanwhile, have maintained that the best approach will be with a ballot initiative to amend the Florida Constitution and deliver permanent cuts next year.
But Wenner noted that House Speaker Daniel Perez just appointed a select committee on property tax relief. While a great deal of attention has fallen on Perez’s push to cut sales tax rates statewide, Wenner said there’s no question the House intends to push some type of property tax cuts.
“His big thing is not property taxes or sales tax. It’s cutting the budget considerably,” Wenner said. “That’s the big difference between the House and the Senate plan. He says that they’ve been addicted to spending.”
Wenner, though, found the impacts of property tax cuts would not be felt evenly. The average local government raises about 24.2% of their revenue from property taxes, but some pull as little as 10.5%. For municipalities, some governments rely on property taxes for as much as 98.3% of their money. Flagler County receives 47.3% of its funds from property tax, while Liberty County gets only 12.8% of funds that way.
Wenner said a variety of factors impact which counties rely on property tax. Areas with major public hospitals collect more in millage assessments than those without, as one example.
“It also points out how difficult it’s going to be for the Legislature to come up with a property tax plan that is equitable to all local governments,” Wenner said.
