Florida Homestead Tax Cut Scaled Back Before Final Vote

Florida lawmakers amended Governor Ron DeSantis’s sweeping property tax cut proposal Monday, carving out school districts before scheduled floor votes Tuesday.

The original bill would have raised the homestead exemption from $50,000 to $150,000 in 2027 and $250,000 in 2028, cutting an estimated $8.4 billion annually from local government revenues. Firefighters warned of budget cuts reaching 25 percent. After committee amendments, the expanded exemption will no longer apply to school district levies, reducing but not eliminating the projected revenue loss to non-school governments, estimated at $4.6 billion rising to $8.4 billion annually under prior projections.

If both chambers approve the measure, it will appear on the November ballot and require 60 percent voter support to take effect. Future legislators would retain authority to expand the exemption further.

Democrats called the proposal reckless, with House Minority Leader Fentrice Driskell warning it would create “welfare counties” among smaller rural jurisdictions forced to seek state bailouts. Senate Democratic Leader Lori Berman called it a political stunt that could bankrupt communities, noting that DeSantis launched a savings calculator website before economists had completed a fiscal analysis.

Several Republicans also expressed reservations. Senator Tom Wright said the proposal was moving too fast and would damage services residents rely on daily. Senator Gayle Harrell voted for it but urged clearer ballot language about fiscal consequences.

Supporters framed the measure as returning power to voters squeezed by years of rising tax bills. “If they want lower taxes they can vote yes, if they don’t want lower taxes they can vote no,” said Senator Jonathan Martin of Fort Myers.

The bill would also lower annual assessment increase caps on non-homestead properties and restrict property tax use to core services. A proposed trust fund for rural counties was removed after senators noted it had no dedicated funding source.