Gov. Ron DeSantis’ property tax proposal has constitutional holes because it seeks to deny cuts to newcomers, according to a newspaper’s analysis of a U.S. Supreme Court ruling.
The measure would require new Florida residents to wait five years before qualifying for a proposed homestead tax exemption that would increase from $50,000 to $250,000 in 2028, the Miami Herald reported. Only current Florida residents and those who move to the state by the end of this year would benefit from the exemption immediately.
DeSantis said he added the residency clause to appeal to voters frustrated by the state’s population growth and concerned that the proposal would further encourage migration to Florida.
But the provision could face legal challenges, the newspaper said.
Forty years ago, the Florida Supreme Court struck down a similar five-year waiting period, citing U.S. Supreme Court decisions that ruled states can’t discriminate against residents by deciding who receives benefits and when.
In that case, a Volusia County lawyer and new Florida resident sued the state after Democratic lawmakers tried to raise the homestead exemption from $5,000 to $25,000. He claimed he was being denied equal protection under the U.S. Constitution. The state agreed, saying there was no “rational basis” for the waiting period.
The justices said trying to stop the influx of residents into the state was not “constitutionally permissible.”
The Florida Legislature voted earlier this month to send the proposed constitutional amendment to voters. The amendment will require a 60 percent approval from voters and lawmakers in November.
Two former elected officials sued the state this month over DeSantis’ property tax proposal, claiming the ballot summary was misleading.
The proposed plan would lower tax bills for 60 percent of Floridians. At its $500,000 peak, the exemption on primary residences would cover 92 percent of homeowners.
DeSantis marketed the proposal as an effort to “look out” for Florida residents by easing the tax burden and shifting it to wealthy seasonal homeowners. But it’s received criticism from officials who say property taxes are a vital source of funding for local infrastructure and caution its elimination could leave a $55 billion funding gap for public services. — Grace McClung
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