Florida Governor Ron DeSantis has recently floated a proposal that could significantly change how property taxes work in the state. The idea is to eliminate property taxes only for homesteaded primary residences, while keeping taxes in place for investment properties, short-term rentals like Airbnbs, and commercial real estate.

Under this plan, homeowners who live full-time in their homes and claim the homestead exemption would no longer pay property taxes. However, properties that are not primary residences could see higher tax rates to help replace the revenue that local governments would lose.

Currently, roughly 35% of Florida homeowners have a homestead exemption, and property taxes play a major role in funding essential local services such as police, fire departments, schools, and parks. If homesteaded properties stop contributing, counties and cities would need alternative funding sources. Options being discussed include higher sales taxes, transfer taxes when properties change hands, or increased tourism-related taxes.

Rural counties could face additional challenges under this proposal, as they often rely more heavily on property tax revenue. One potential solution being discussed is state-level support, using Florida’s current budget surplus to help offset the impact.

It’s also important to note that this type of change wouldn’t happen overnight. Any amendment to eliminate property taxes would require approval from at least 60% of voters statewide.

If passed, this proposal could reshape homeownership, affordability, and investment strategies across Florida. Like many big policy ideas, it comes with potential benefits and trade-offs, and the conversation is just getting started.

What are your thoughts? Would this help Florida homeowners, or create new challenges for local communities?