As Republican state lawmakers hash out a budget that would help with reducing — maybe eventually eliminating — property taxes, progressive-leaning leaders in Central Florida raised concerns Tuesday on how the loss of this major revenue source could impact residents and local governments.
Focusing on the critical role property taxes play in funding essential services like public safety, education, and infrastructure projects, speakers said losing this funding could lead to cutbacks on these services and increases in sales taxes, which would hurt low-income households already struggling with a lack of affordability.
Sadaf Knight, CEO of the progressive-leaning Florida Policy Institute, said property taxes are “the driver and the lifeblood of local governments,” stating that 50-60% of school district budgets, as well as 100% of Oviedo’s emergency services depend on these funds.
“Property taxes, overall, support 28% of local government services,” Knight said. “If these taxes were eliminated, they would leave a $43 to $55 billion hole in local budgets — that would be devastating. Florida lawmakers would have to raise over $2,000 per capita in other ways to make up for this gap.”
Sounding the alarm
Spearheaded by Democratic Rep. Anna Eskamani and hosted by the Orange County Property Appraiser, Amy Mercado, elected public officials, as well as community policy leaders gathered at a roundtable event Tuesday afternoon in Downtown Orlando.
Other speakers included Orange County Commissioner Nicole Wilson, who said that losing this funding concerns her, especially in uncertain times when federal funds are also under threat.
“What we would be giving up the most is public safety,” she said. “The idea of government waste and efficiency translating to the potential of defunding the police, having people not show up when your house is on fire, is absolutely something that keeps me up at night.”
Proponents of lowering property taxes, including Gov. Ron DeSantis, have said homeowners’ taxes are “oppressive,” “ineffective” and that local governments are taking advantage of the high influx of money to “bloat” their budgets.
In fact, property taxes are a legislative priority for many Republican lawmakers again this year, with more than 70 bills and proposed constitutional amendments filed, according to Florida TaxWatch. While legislators can propose changes, property taxes are Florida constitutional law and require an amendment to be approved by at least 60% of the voters in November.
Orange County Tax Collector Scott Randolph said the increasing tax rate is a false narrative backed up only by manipulated data.
“You're going to hear over the next six months, as they debate this, how taxes have gone up, and if you were to look at just averages and medians, yes, the average tax bill in Florida has gone up in the last six years — there's no doubt,” he said. “But in reality, Florida's property tax structure is designed to keep increases low for existing homeowners.”
What’s the real problem?
In Orange County, property tax revenue is now evenly split between residential and commercial. This shift is driven mainly by state policies that protect homeowners from steep increases, such as Save Our Homes, portability, market caps, and a number of other rules and exemptions.
Randolph said it’s first-time homebuyers who are getting the short end, hit on affordability with the highest property taxes. Taxes, he said, are not why people are losing their homes.
“If you’ve owned your home for seven, eight, 10 years, you don’t need a tax cut -- you really just don’t,” he said. “This whole idea that longtime homeowners are being pushed out of their homes is just gobbledygook talking points. It’s not the taxes; it's because of insurance.”
Eskamani said Florida’s "upside-down” tax system is designed to be regressive, with a disparity of individuals who struggle to make ends meet bearing heavier tax burdens than the wealthy. Renters also indirectly pay property taxes through rising costs, as landlords and corporations pass down their expenses, and laws are needed to ensure the savings also trickle down.
“If you were to compare revenue in Florida generated by use tax, which is sales tax that consumers pay compared to corporations — it's like comparing a four story building to a 40 story building.” she said. “Only 1% of Florida businesses pay a corporate income tax, so there's plenty of work to do to make our tax structure more balanced beyond property taxes."
Working out solutions
Despite the challenges, the panel said they’re committed to restructuring taxes, relieving homeowners from rising insurance premiums, and incentivizing young and first-time buyers to live here.
“The path to homeownership is becoming more and more narrow for a lot of Floridians,” Eskamani said.
Leaders discussed including help for first-time buyers, inflation- and percentage-adjusted exemptions, and property tax incentives for affordable housing. The consensus was that tax relief must be equitable and targeted — not a blanket, one-size-fits-all, as it’s been done.
Panelists stressed also that local governments need more flexibility and the need for transparency and ongoing community education. The discussion continues Thursday at 5 p.m. at a town hall in the Orange County Firefighters Association Hall, featuring Eskamani, Democratic Congressman Maxwell Frost and Democratic state Sen. Carlos Guillermo Smith.
Lillian Hernández Caraballo is a Report for America corps member.
