Peeling Back the Onion

All taxes are unpleasant, but property taxes in particular strike a nerve because they seem to conflict with the very notion of freedom and ownership. However, while property taxes are unpopular, their economic role is far more complex than the surface-level frustration they evoke. And eliminating them, as Florida is now proposing, would do more harm than good, especially for working families.

First, the popular myth that property taxes drive people out of their homes simply doesn’t hold up. Florida’s homestead exemption caps annual property value increases at 3%, ensuring that homeowners are not priced out of their communities by soaring assessments. The narrative of widespread displacement due to property taxes is misleading.

Instead, the push to eliminate property taxes plays into a different story. One that benefits wealthy developers and out-of-state snowbirds while shifting the burden onto everyday Floridians. Proponents want us to believe that ending property taxes will be a gift to Florida families. But can we really trust the same state leadership that has repeatedly favored developers over local communities, gutting county authority, pushing to commercialize state parks, and encouraging unchecked population growth?

The reality is that developers and seasonal residents currently shoulder a large share of Florida’s property tax revenue. They pay far less in sales tax, while property taxes ensure they still contribute significantly to the state. If property taxes disappear, that lost revenue will have to come from somewhere. And the “somewhere” will almost certainly be sales taxes, fees, and other regressive forms of taxation that hit low- and middle-income Floridians hardest.

Another way to view this is that Florida residents now receive a tax discount through the Homestead Exemption, but developers and vacationers do not. Essentially, we would be forfeiting our discount because we wouldn’t qualify for a sales tax reduction. Since residents will be making most of the purchases, they will ultimately bear the majority of the taxes.

The math is straightforward. Eliminating property taxes doesn’t erase the cost of schools, roads, hospitals, and emergency services. It just shifts who pays for them. Without property taxes, wealthy landowners and developers see their bills shrink, while working families pay more every time they buy groceries, clothes, or school supplies. That’s not tax relief, it’s a tax swap that punishes those who can least afford it. All for the continuation of growth, encouraging more investment in our state.

Florida’s property tax system isn’t perfect. Still, it is one of the few mechanisms that ensures the state’s largest landholders, businesses, and out-of-state residents pay their share of the operating costs. Abolishing it would leave working Floridians holding the bag.

Florida’s proposal to eliminate property taxes is being sold as a bold vision of freedom. But when you peel back the slogan-ready language, it looks a lot less like liberation and a lot more like a stimulation scam.

Meanwhile, who benefits the most? The developers who profit from Florida’s rapid growth and donate to campaigns. The out-of-state snowbirds who use our roads, hospitals, and services but wouldn’t pay a toll to access our beautiful amenities anymore. It’s no coincidence that these are the same groups with strong ties to the state’s political machine. When lawmakers are the same people cashing in on the laws, working Floridians are left behind. Don’t be fooled.