Florida could soon make history—but at what cost? In his recent State of the State address, Governor Ron DeSantis unveiled a bold plan to eliminate property taxes entirely, a move that would position the Sunshine State as the first in the nation to take such a step. The proposal, slated for a 2026 voter decision, raises critical questions: Is this a genuine effort to ease financial burdens on homeowners, a legacy-defining policy, or a strategic political play? And perhaps most pressing—how would Florida’s schools and local governments function without this crucial revenue stream?
The $55 Billion Question
The immediate impact? A projected $55 billion shortfall for school districts and municipalities. Here’s the breakdown:
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$33.7 billion funds essential services like law enforcement, fire departments, and infrastructure.
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$21.5 billion supports public education.
With property tax revenues doubling over the past decade, the stakes couldn’t be higher.
Alternative Revenue: A Non-Starter?
To offset the loss, some have suggested doubling Florida’s sales tax to 12%—the highest in the U.S.—which could generate $40 billion annually. But DeSantis has already dismissed the idea, leaving a glaring question: What replaces the funding gap?
Florida’s Tax Paradox
Despite ranking 20th nationally in median property taxes ($3,100), many Floridians have faced steep increases:
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Broward County: Median property taxes surged 57% since 2019—the highest jump in the country—while home values rose 60%.
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Miami-Dade: Taxes up 50%, with home values climbing 59%.
Relief on the Horizon?
With property tax revenues soaring 40% in four years, lawmakers are exploring alternatives, including a proposed $100,000 exemption for all properties. Meanwhile, DeSantis floated a two-tier system, suggesting tourists and non-residents could shoulder more of the burden—a model that would disproportionately benefit high-tourism areas like Miami and Broward.
The Bigger Picture
As debates heat up, one thing is clear: This proposal could redefine Florida’s economic future. For homeowners, it might mean relief—but for schools and local services, the consequences could be profound.
This analysis is brought to you by the Master Brokers Forum, a selective network of South Florida’s top real estate professionals, recognized for excellence, ethics, and exceptional market insight.
