Photo courtesy of WUSF.org

MIAMI – Florida Governor Ron DeSantis is proposing a $5 billion property tax relief for Floridians homesteaded homeowners, which would be the largest tax break in the state’s history.

While the GOP-led House is cutting a historic 25 percent in sales taxes to save Floridians $5 billion a year, DeSantis pitched a plan to prioritize residents over tourists and non-resident investors.

DeSantis announced his proposal, called Florida-First Tax Package, today during a news conference in Orlando.

He said the amount averages to $1,000 tax break for each homeowner claiming a homestead exemption.
“It’s putting money back in the pockets of hardworking Floridians, and reinvigorating the state’s housing market,” DeSantis said.

DeSantis said a steady influx of tourists and part-time residents would offset the $5 billion for the tax relief program and without impacting essential revenues.

DeSantis praised House leaders for floating a $5 billion tax relief package but criticized their current plan to cut the state sales tax by three-quarters of a penny.

Sales tax applies to a variety of items including purchasing clothes, a car and furniture.
“Floridians aren’t clamoring for a sales tax cut, they’re demanding property tax relief,” he said. “We don’t need to be giving tax breaks to foreigners and tourists. This should be for Floridians, period.”

The sales tax slash and DeSantis’ $5 billion property tax relief proposals come amid Florida’s discussion to end property tax, which would be the first state to do so.

Local governments opposed eliminating property taxes which fund municipal services such as police and fire services, infrastructure upgrades and schools.

According to the Tax Foundation, the average property tax bill in Florida is $2,800 each year.

Property taxes and insurance are the main sources driving up the costs of living in Florida.

According to real estate firm BedFin, median home sales prices have almost doubled in Florida in five years, from $253,000 to $412,000.

The Florida Senate is proposing a $117.36 billion budget for 2025-2026, which is about 25 percent less than the current year, and the House is offering a $112.95 billion spending plan.

Their proposals reflect the cut in sales taxes and spending about $200 million to help the struggling citrus industry.

Budget negotiations are set to commence this week with a final vote on their spending plans near the end of the Florida Legislative Session in May.