Florida's Republican Governor, Ron DeSantis, may well be one of the best governors in the nation today, and it will surprise me if he doesn't end up in the Oval Office one day. In his latest move to save Florida taxpayers a few bucks, he's pushing a ballot initiative to gradually phase out Florida's real property taxes, sometimes known as homeowner taxes.
Florida Gov. Ron DeSantis detailed the next regulatory steps for the state’s effort to eliminate property taxes on primary residences in Florida.
"People are being pinched across the economy in a lot of things," DeSantis said on FOX Business’ "Varney & Co." Friday. "We're doing fine at the state [level], but the local property taxes are hurting people."
"The reality is these local governments have overspent, and people are paying more and more for that. And at some point it's like, when is enough, enough?"
Enough? How about too much? Even in a red state like Florida, there is almost certainly a lot of spending that can be cut. And cuts will be required, because the state's property taxes are bringing in significant cash. The proposals are interesting:
Lawmakers are reportedly advancing a package of proposals in the Florida House that include a $500,000 homestead exemption (with a potential maximum of $1 million for seniors), a cap on assessment increases, and the option of eliminating property taxes on homesteads altogether.
If I had to offer a guess, I'd say that the $500,000 homestead exemption is much more likely to see the light of day than eliminating the property taxes altogether.
Read More: There's a Growing Movement to Eliminate Property Taxes
Op-Ed: DeSantis Is Right to Kill Property Taxes—It’s Time to Lead the Pack
Speaking of the tax reciepts:
According to the Florida Policy Institute (FPI), property taxes generate roughly $55 billion annually and provide around 18% of county revenues, 17% of municipal revenues, and up to 60% of school-district funding in many areas. The group warns that eliminating property taxes could force a dramatic increase in other revenue sources — in some estimates, raising the state sales tax from 6% to as much as 12%.
Even if we consider a tit-for-tat arrangement, in which sales taxes are hiked to make up for the property tax being mostly or completely eliminated, I'm inclined to think it's still a better deal. Sales taxes in Florida are 6 percent on most items, but some items are exempt from the sales tax: Food and groceries (excluding prepared foods, candy, and carbonated beverages), medical and health items, products intended for agriculture, equipment and supplies for manufacturers, energy and utilities, and a few other things.
Here's the thing: Florida (like Alaska) has a booming tourism industry. Florida (unlike Alaska) has that state-wide sales tax. Tourists don't pay property taxes in Florida, but they do pay sales taxes. Even illegal aliens pay sales taxes, not that this is any reason to allow them to remain. The sales tax has a much broader base.
Also, property taxes can take a bite out of a homeowner's budget as their property appreciates. It's a negative incentive on home ownership, which is supposedly still a major part of the American dream, right?
This whole idea is just getting off the ground. It's anyone's guess what the Florida voters may decide. But we'll be watching developments in this matter with great interest, both before and after any vote.
Editor’s Note: Thanks to bold Republican policies and governors like Ron DeSantis, America’s economy in the nation's red states is back on track.
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