Florida lawmakers on Tuesday passed a property tax cut proposal that would dramatically increase the homestead exemption from $50,000 to $250,000 over two years, with inflation adjustments beginning in 2029. The bill requires approval from 60% of voters in November to take effect. The measure would also lower assessment caps on non-homesteaded properties from 10% to 5%.
Local experts are divided on how the proposal could affect county and municipal budgets across the Treasure Coast. Real estate attorney Steve Wallace, based in Boynton Beach, raised the possibility of new fees tied to local services. "There could potentially be non-ad valorem taxes assigned to the sheriff's office, fire rescue, some of the other things. Additionally, there may be some increased fees because the only other way that the county or the local governments can derive revenue," Wallace said. CPA Paul Miller suggested businesses could end up carrying more of the financial burden to offset lost revenue.
Municipal attorney Raul Gastesi offered a different perspective, suggesting the measure could actually push home prices higher. "I expect home prices could actually increase because now home buyers have more money at their disposal, and that in the past has resulted in home prices going up," Gastesi said. Realtor Danielle Blake was skeptical of that theory, pointing to interest rates as a more significant barrier to sales than property taxes alone. All four experts acknowledged there are significant unknowns about how counties and municipalities might respond to decreasing property tax revenue. If the ballot measure passes, lawmakers would need to return to Tallahassee to work out the specifics in a bill to implement the changes.