Governor Ron DeSantis and Republican lawmakers in Florida are advancing proposals to phase out property taxes, a move that could reshape the state’s fiscal structure but faces challenges in replacing the estimated $50 billion in revenue these taxes generate annually.

“We are here on the second day of the regular session of 2025 to announce the beginning of the end of property taxes in the free state of Florida,” said Rep. Ryan Chamberlin, R-Belleview, who has sponsored legislation to study the impacts of such a phaseout. (USA TODAY NETWORK – Florida)

DeSantis has frequently criticized property taxes as unfair, arguing that homeowners effectively “rent” their property from the government.

“You buy a home, you pay off the mortgage, and yet you still have to write a check to the government every year just for the privilege of living on your own private property,” DeSantis said in his State of the State address.

The Revenue Replacement Challenge

Despite the enthusiasm from some lawmakers, there is no clear plan to replace property tax revenues, which fund essential services such as public schools, law enforcement, and infrastructure. Florida has no state income tax, leaving sales tax increases as a likely alternative.

FAU Finance Professor Rebel Cole estimates that Florida’s 6% sales tax would need to double to 12% to compensate for lost property tax revenue. “With a sales tax, everybody would pay,” Cole said, suggesting that tourists and seasonal residents would contribute more under such a system.

However, critics warn that increasing sales taxes would disproportionately impact lower-income residents, who spend a larger share of their income on taxable goods. “You’re either going to have to cut your public services—like money for infrastructure, schools, police and fire rescue—or you do a tax swap,” said Dr. Esteban Santis of the Florida Policy Institute in an article for WEP CBS.

Political Uncertainty

While some Republicans, including Sen. Jonathan Martin, R-Fort Myers, have proposed studying alternatives through SB 852, others within the party remain skeptical. Senate President Kathleen Passidomo, R-Naples, urged caution, noting that many property owners in Florida are non-residents who contribute tax revenue without drawing on local services.

“I feel pretty uncomfortable about some of these broad, sweeping statements about eliminating property taxes. I think we should caution our members as to the outcomes if we just do that.”

Democrats have voiced concerns that any move to eliminate property taxes could result in significant cuts to education and public safety.

House Democratic Leader Fentrice Driskell questioned the governor’s plan: “Which teacher would the governor fire? Which law enforcement officer would he tell to go home?”

Alternative Approaches to Property Tax Reform

While Florida lawmakers debate eliminating property taxes, some states and cities have successfully implemented tax reforms that reduce burdens on homeowners while maintaining essential revenues.

The split-rate property tax, which taxes land at a higher rate than buildings, has been adopted in parts of Pennsylvania and has been credited with encouraging development while capturing the rising value of land.

This Georgist-inspired policy ensures that publicly created land value is harnessed for public benefit, rather than shifting tax burdens onto lower-income residents through sales tax increases.

As Florida considers its fiscal future, proposals to eliminate property taxes will likely face scrutiny over their impact on funding for vital services. Whether voters will support a constitutional amendment to phase out property taxes remains an open question.