Florida’s Republican-controlled House of Representatives is fast-tracking a sweeping package of reforms that could dramatically slash residential property taxes in the state, causing heartburn for local governments that use the money to fund critical services such as law enforcement.
Legislators are proposing seven constitutional amendments for the 2026 ballot that would give voters the chance to decide whether to scale back or eliminate property taxes on homesteaded residences, the Orlando Sentinel reported. If voters approve the changes, local governments could lose up to $18 billion in annual revenue.
The proposals, to be debated when the Florida Legislature convenes for its yearly session on Jan. 13, mark the boldest effort yet in Florida politicians’ long-running battle over property taxes.
One of the measures would wipe out local non-school taxes on homesteads. Others would expand exemptions or create new ones tied to property insurance coverage.
Orlando and Orange County are among the localities that warn the plans could destabilize budgets that rely on property taxes to fund police, fire, parks and basic infrastructure.
House Speaker Daniel Perez, a Republican legislator from Miami, said lawmakers want to give voters a “menu” of options rather than a single plan.
Gov. Ron DeSantis, who pushed for eliminating all property taxes, has opposed that approach, warning it could splinter support. But his influence is waning, as a lame-duck governor with no veto power over ballot initiatives.
Local officials and fiscal analysts say the proposals threaten to upend municipal finance systems that hinge on the stability of property levies.
Orlando could lose about $72 million in annual revenue if homestead taxes vanish, while unincorporated Orange County could lose nearly $278 million. Critics argue that loss would inevitably shift the tax burden onto renters and small businesses or force cuts in essential services.
Supporters, led by GOP legislators and state CFO Blaise Ingoglia, contend property tax growth has become “unsustainable,” arguing homeowners deserve relief amid surging values. Any resolutions that pass the House and Senate with three-fifths majorities will appear on a statewide ballot next year and require 60 percent voter approval.
– Francisco Alvarado