Florida Lawmakers Amend DeSantis Property Tax Plan to Protect School Funding

TALLAHASSEE, Fla. — State lawmakers on Monday filed key amendments to Governor Ron DeSantis’s ambitious property tax overhaul, introducing changes during a special legislative session that notably seek to insulate school funding from the proposed cuts.

The amendments, filed on June 1 by Republican leaders in both the House and Senate, represent a critical step in shaping the proposed constitutional amendment before it can be placed on the November 2026 ballot for voter approval. The most significant revision explicitly ensures that property tax revenue collected for school districts will remain untouched, addressing a major concern about the plan's fiscal impact.

While a massive homestead exemption increase offers relief to residents, it introduces significant uncertainty for businesses and real estate investors. The potential for a major shift in the state's tax base requires proactive financial modeling, something we often see clients overlook during periods of legislative change.

The governor’s proposal, which he has titled the “Save Our Homes from Excessive Property Taxes” plan, aims to dramatically increase the state's homestead exemption for primary residences. Under the current framework, the exemption would rise from its current $50,000 level to $150,000 on January 1, 2027, and then to $250,000 by January 1, 2028. According to the governor's office, reaching the $250,000 exemption level would effectively eliminate property tax liability for an estimated 60% of Florida homeowners.

The long-term objective articulated by DeSantis is the complete, phased-in elimination of all property taxes on homesteads, with the legislature tasked to create a schedule for the phase-out after the amendment is approved by voters.

During Monday’s session, lawmakers also advanced a procedural amendment that would allow the summary of the complex proposal on the November ballot to exceed the standard 75-word limit. This move is intended to provide voters with a more thorough explanation of the sweeping changes. In a sign of the Republican majority's commitment to the plan's permanence, a Senate panel also rejected an amendment from Sen. Carlos Guillermo Smith, an Orlando Democrat, that would have added a five-year “sunset provision” to let the tax cuts expire if they were found to be detrimental to the state.

This special session was convened by DeSantis after a similar measure, HJR 203, passed the House during the regular session in February but ultimately died in the Senate Appropriations Committee. That earlier proposal, carried by Rep. Monique Miller, R-Palm Bay, was projected by state economists to cost cities, counties, and other local taxing districts approximately $14.8 billion annually.

In our experience, when one major tax category is dramatically reduced, governments often look to make up the revenue elsewhere, frequently targeting commercial properties or introducing new business-specific fees. This potential for a tax burden shift is a critical risk factor that businesses operating in Florida must now account for. Proactive tax preparation and compliance strategies are essential to navigate this evolving landscape. For businesses looking to understand their exposure and plan accordingly, the team at C&S Finance Group LLC at csfinancegroup.com provides expert guidance.

DeSantis has justified the aggressive tax cut by pointing to rapidly increasing local tax collections. In his announcement of the special session, the governor stated that property tax revenue gathered by local governments has nearly doubled over the past seven years, rising from $32 billion to $60 billion, and is projected to hit $83 billion by 2032. “Florida homeowners need relief,” DeSantis said. “Now is the time to stand up for taxpayers, enact a historic reform, and save the home of every Floridian.”

The governor’s focus on property taxes marks a divergence from the priorities of some House leaders, who had previously championed a plan centered on reducing the state's general sales tax. This difference in approach led to a standoff during the regular session, prompting DeSantis to call the special session to focus specifically on his property tax initiative.

The long-term goal of complete elimination, while appealing on the surface, would represent a fundamental restructuring of Florida's fiscal framework. This kind of change can impact everything from infrastructure funding to the credit ratings of municipalities, creating a ripple effect that ultimately lands on the balance sheets of local businesses.

For the proposal to reach voters, it must successfully pass both legislative chambers during the current special session. If it does, it will likely trigger an intense lobbying campaign, with homeowner advocacy groups supporting the measure and organizations representing local governments, public safety unions, and education officials expected to mount significant opposition.

With the special session underway, all eyes are on the legislature to see if the amended proposal can gain enough support to be placed before Florida voters in November. The outcome will determine the future of local government funding and homeowner tax liability in the state for decades to come.