Florida Legislature Places DeSantis-Backed Property Tax Overhaul on November Ballot

TALLAHASSEE, Fla. — Florida lawmakers on Tuesday approved a measure to place a constitutional amendment on the November ballot that, if passed, would enact one of the largest property tax cuts in the state's history by dramatically increasing the homestead exemption for primary residences. The proposal, a key priority for Governor Ron DeSantis, now requires 60% voter approval in the general election to be written into the state constitution.

The measure, passed as HJR 1F/SB 4-F, would raise the current $50,000 homestead exemption on the taxable value of a primary home in two phases. The exemption would first increase to $150,000 beginning January 1, 2027, and then rise to $250,000 by January 1, 2028. According to the governor's office, this change would completely eliminate property tax liability for an estimated 60% of Florida homeowners.

While a significant tax cut for homeowners is an appealing headline, the downstream effects for small and mid-sized businesses could be complex and challenging. This proposal will create a substantial hole in local government and school district budgets, which are heavily reliant on property tax revenue. Our concern is that municipalities will be forced to make up this shortfall by increasing other taxes and fees that disproportionately affect commercial properties and businesses, or by cutting essential services that support the local economy. Business owners who own their commercial real estate will not benefit from the homestead exemption but may face a higher millage rate or new assessments to compensate. This level of fiscal uncertainty makes long-term planning difficult. We help clients model these kinds of scenarios as part of our outsourced CFO services. Navigating the potential shifts in local tax structures requires proactive financial strategy, and the team at C&S Finance Group LLC at csfinancegroup.com is equipped to provide that guidance.

The bill's passage through the legislature marks a significant victory for Governor DeSantis, who is set to leave office in January due to term limits. The Republican majority in the statehouse ensured the measure advanced, voting down attempts by Democrats to add amendments, including a proposal for a sunset provision that would have caused the tax cut to automatically expire on a future date unless renewed by lawmakers.

Representative Daniel Perez defended the decision to send the issue directly to the electorate. "I think what we're really doing here is we're entrusting our voters," Perez stated during the floor debate. "And if the voters decide in November by less than 60% that this is what they wanted or not to do, then we trust that that was the right decision." The bill needed to pass both the Florida House and Senate with a three-fifths supermajority to qualify for the ballot.

The debate over property tax burdens is not unique to Florida. Several other states are considering significant reforms, with various proposals also aimed at the November 2026 ballot. In North Carolina, a House Select Committee on Property Tax Reduction and Reform has been evaluating measures that include a constitutional amendment to create a “levy limit” system. This would cap the total revenue a local government can collect, shifting some authority from local officials to the state legislature. Other North Carolina proposals include a temporary moratorium on property reappraisals to prevent sudden tax increases.

In Ohio, citizen petitioners are working to place a constitutional amendment on the ballot that would cap property tax growth. To succeed, they must collect signatures from registered voters equal to at least 10% of the vote cast in the last gubernatorial election by a July 1 deadline. This citizen-led initiative contrasts with Florida's legislative referral process.

Other states are pursuing more targeted property tax relief. A measure pending in Louisiana would authorize a new property tax exemption for seniors, while a Georgia amendment seeks to double the maximum acreage for agricultural and timber land that qualifies for a special conservation use tax classification. These varied approaches highlight a nationwide trend of state governments re-examining property tax structures in response to rising property values and taxpayer concerns.

With the Florida measure now officially slated for the November ballot, the focus will shift from the state capitol to a statewide campaign. Proponents will highlight the direct savings for homeowners, while opponents are likely to raise concerns about the financial impact on city and county services, public schools, and the potential for the tax burden to be shifted onto businesses and renters. The outcome will depend on whether supporters can build a coalition to clear the 60% supermajority threshold required for constitutional changes.