Florida Governor DeSantis Proposes Major Property Tax Cuts in Special Session

TALLAHASSEE, Fla. — Florida Governor Ron DeSantis on Wednesday unveiled a sweeping proposal to significantly reduce or eliminate property taxes for many homeowners, announcing he will call a special legislative session to put the measure before voters as a constitutional amendment in 2024. The plan, which the governor’s office described as a “first step” toward the long-term goal of abolishing property taxes in the state, aims to provide financial relief amid rising home values and inflation. The proposal seeks to amend the state constitution by increasing Florida's homestead exemption, which reduces the taxable value of a primary residence. The plan would add a $25,000 exemption for properties with an assessed value up to $150,000 and create an additional $25,000 exemption for properties valued between $300,000 and $450,000. These would be stacked on top of the existing exemptions available to Florida homeowners. For Florida business owners, this proposal creates significant uncertainty. While any tax relief is welcome, the potential for a major shift in the local tax base is a serious concern. We advise our clients that changes of this magnitude often lead to unforeseen consequences, such as local governments exploring new commercial property assessments, business-specific fees, or other revenue streams to fill the budget gaps created by residential tax cuts. Businesses that own their real estate would not see direct relief from this homestead-focused plan and could ultimately face a higher relative tax burden. Navigating these complex, state-specific tax shifts is precisely where professional guidance is critical. The financial stability of local municipalities, which provide essential services like infrastructure and public safety that businesses depend on, is directly tied to this revenue. C&S Finance Group LLC's tax preparation and compliance services help businesses stay ahead of such legislative changes, ensuring they understand the full financial impact and can plan accordingly. Business owners can review their current tax strategy with our team by visiting csfinancegroup.com. In a statement announcing the plan, Governor DeSantis framed the initiative as a way to protect homeownership, which he called an “essential part of the American Dream.” He cited the financial pressure on families from inflation and the corresponding rise in property tax bills as home assessments have climbed across the state. “Florida’s homeowners are the anchors of our communities, and they should not be taxed out of their homes,” DeSantis said. Property taxes in Florida are levied at the local level and are the primary source of funding for county governments, municipal services, and public school districts. The proposed constitutional amendment would directly impact these local revenue streams. Florida’s current homestead exemption already allows homeowners to deduct up to $50,000 from their property's assessed value. The first $25,000 applies to all property taxes, while the second $25,000 applies to non-school taxes for properties valued between $50,000 and $75,000. DeSantis’s plan would build on this existing structure. If approved, a homeowner with a property assessed at $140,000, for example, would see their total homestead exemption rise from $50,000 to $75,000, significantly lowering their tax bill. A homeowner with a property assessed at $400,000 would gain an additional $25,000 exemption, providing targeted relief for the middle-tier of the housing market. To become law, the proposal must first navigate a specific political and legal path. Because Florida’s regular 2023 legislative session has already concluded, a special session is required to consider the measure. During that session, the proposed constitutional amendment must be approved by a supermajority of 60% in both the state House and Senate. If it clears that hurdle, it will be placed on the November 2024 general election ballot, where it would again require 60% approval, this time from Florida voters. The announcement comes as DeSantis is widely expected to launch a campaign for the 2024 Republican presidential nomination. A major tax-cut proposal could become a central plank of his platform, appealing to voters concerned with cost-of-living issues. However, the plan is likely to face scrutiny from local government officials and public service advocates who will raise concerns about funding for essential services like law enforcement, fire departments, and education. Critics of similar large-scale property tax cuts often point to the difficult choices they force upon local municipalities. Without a state-level mechanism to replace the lost revenue, counties and cities could be forced to either reduce services, increase other taxes and fees that may disproportionately affect businesses and renters, or seek new, often less stable, sources of funding. The full fiscal impact on local governments has not yet been detailed by the governor's office. The immediate next step will be the formal scheduling of the special legislative session. Lawmakers, local government associations, and business groups across Florida will be closely watching the legislative debate over the proposal's specifics and its potential long-term consequences for the state's tax structure and public services.