The Lead · Politics · Statewide
The state estimates counties, cities and other local governments could lose nearly $5 billion in the cut's first year. Gov. Ron DeSantis wants lawmakers back before he leaves office in January to limit how they make it up.
Gov. Ron DeSantis wants lawmakers back for a special session by January to stop local governments from replacing the lost tax money with fees or other taxes. That fight shapes how much of the cut you keep on a home, second home, rental or business.
Voters passed the cut, Amendment 3, with 62% of Tuesday's vote in the state's unofficial count. The state panel that priced it, the Revenue Estimating Conference, estimates local governments' first-year loss at nearly $5 billion, most of it from counties.
At full effect, local governments in the Palm Beach County area could lose $1.07 billion a year, the state's tables show. Jim Boyd, the Republican in line to lead the Senate, said before the vote that, in his view, any follow-up law "can wait until we reconvene in January." Sam Garrison, the Republican in line to lead the House, said then that he would "rather be right than be quick."
Why it matters: Homestead owners who are permanent Florida residents by Dec. 31 get a $150,000 exemption in 2027 and $250,000 in 2028. It covers county, city and district taxes, not school taxes, and newcomers wait until their fifth year. Second homes, rentals and businesses gain too: the 10% yearly limit on how fast their taxable value can rise is cut in half.
The story so far: In a June special session, lawmakers sent voters the plan DeSantis's office wrote. They left school taxes out of the bigger exemption. Florida Realtors, the state's Realtors trade group, then gave $19.5 million of the $21.5 million the yes campaign raised, state records show.
What's new: At a Capitol news conference on Wednesday, Nov. 4, DeSantis said lawmakers will pick the dates and the work "has to be implemented by January 1st per the amendment." He also promised a pool of grant money for local governments.
What's next: The Legislature meets to organize on Tuesday, Nov. 17. DeSantis says the cut must be in place by Jan. 1. Gov.-elect Byron Donalds, a Republican, takes office Tuesday, Jan. 5; he has said he wants to repeal homestead property taxes entirely if the math allows. The regular session opens in March, and the first bills under the new rules arrive in 2027.
Old Florida Money desk · Fri Nov 6 · The vote count is the state's unofficial count. Every revenue figure is the state economists' estimate, not an adopted budget. No special session has been called and no date is set. No record we read ties the yes campaign's money to the result or to any official act. · Sources: Florida Division of Elections (Election Watch; campaign finance database); the Revenue Estimating Conference impact statement; The Florida Channel recording; the Florida Constitution; News Service of Florida via Tallahassee Reports and Jacksonville Today;
Florida Phoenix; St. Pete Catalyst; Suncoast Searchlight; WEAR-TV; Jacksonville Daily Record; Orlando Weekly; Florida Realtors
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