In summary: It can be done, but only if there’s a carefully planned, phased strategy with a variety of income sources (not just one quick solution), robust safeguards for education and people in need, and probably an alteration to the constitution along with state aid during the switchover. We will outline a workable plan, the income options to consider, safeguards to include, and the necessary political and legal measures, all supported by reliable data.
Important Background Information
In Florida, property taxes account for roughly half of what local governments collect, totaling more than $50 billion annually across the state, so getting rid of them would leave a significant funding gap. Yet this would only affect a fraction of that since it is meant for Homestead Exemption Properties only.
Around 46–47% of the money for Florida’s schools comes from local sources, mainly property taxes; therefore, eliminating property taxes would directly affect schools unless the state steps in to compensate.
Any broad, state-level change would almost certainly need approval from voters via a constitutional change, setting off major financial and legal changes for cities and counties.
Key Ideas for a Practical Replacement Strategy
Switch over to new income sources slowly, using a phase-out over several years instead of an immediate elimination.
Implement various income streams together to prevent any single group from being burdened with a sudden, sharp tax increase.
Ensure that schools and vital emergency services are the priority, protecting their funding with a guaranteed minimum level of state support during the change.
Develop a fairer system than simply swapping property taxes for sales taxes, aiming to protect households with lower incomes.
Allow local authorities like counties and cities to use local tax options to adjust their income according to their specific community needs.
A practical mixed-revenue strategy (example, not specific laws)
Imagine we want to change about $50 billion each year from property tax income. A realistic mixture that could work might look like this:
Expand and slightly increase the sales/use tax at the state level – for instance, raise the state tax by a few percentage points and include more services that are currently not taxed (like some professional and digital services). – Reason: sales taxes are straightforward to collect and also include tourists; expanding the tax base increases income without one massive hike. – Protections: establish refundable tax credits (like a “sales tax rebate” or a refund for low-income individuals) to balance out the effect on lower-income earners. – (Note: studies indicate that using only sales tax to replace the whole $50 billion would mean an extremely high rate – some estimates suggest doubling the current state rate – which wouldn’t be good politically or fairly, so a mixed approach is better).
Focus on taxes for tourists and visitors (like hotel taxes, fees for short-term rentals, car rental fees, and taxes for tourism development). – Reason: people from other states use Florida services but do not vote here; by raising these taxes, we can collect fees from visitors who usually avoid paying property tax. This is also easier politically than taxing residents. – Revenue impact: significant, but not too much – it could generate several billion each year when combined both at the state and local levels.
Taxes on real estate transactions or transfer taxes for high-value sales (like progressive deed or transfer taxes that apply on sales above certain amounts). – Reason: this captures extra money when properties are sold (usually by investors or wealthy buyers), leaving long-term homeowners less burdened.
New or increased local option taxes (counties and cities could add extra local sales taxes or fees for certain local services). – Reason: this respects local choice and allows communities to fund services themselves instead of depending on property tax.
A slight rise in specific business or corporate taxes (or fixing loopholes for corporations). – Reason: this makes sure that businesses benefiting from local services contribute; tax credits can be added to avoid double taxes.
Specific fees for certain services (like stormwater management, waste disposal, and fees for stronger infrastructure) – charges for clear costs incurred.
State transitional support and a funding minimum for schools: during the changeover, the state would temporarily help local school funding (FEFP) to keep things stable while new revenue sources are put in place; eventually, the new funds would be set aside to replace that support. This needs to be officially written down so that school and first-responder budgets stay secure.
Protections to prevent harm to low-income and fixed-income homeowners
A refundable circuit-breaker tax credit: a direct financial benefit for low-income families based on income rather than property value.
Expanded homestead and senior tax exemptions during the changeover to support retirees with fixed incomes.
Gradual implementation to allow households to prepare (for example, a transition period of 5 to 8 years).
Specific assistance programs (help with utilities, guaranteed school funding). (These are common strategies used in areas that move from property taxation to taxes based on consumption or transactions.)
Implementation steps (legal + practical)
A thorough study of revenue and budget gap analysis (providing annual replacement figures) carried out by the Legislature’s Economic and Demographic Research Office alongside the Department of Revenue.
Create the ballot proposal (a constitutional change if ad valorem authority is to be removed) and the transition law that defines hold-harmless/backfill processes. Approval from voters will definitely be necessary.
Enact laws for new taxes (expanding sales tax base, raising tourist taxes, introducing transfer taxes), form low-income rebates, and establish a legal guarantee for floor funding for schools.
Develop a schedule for phasing out and setting audit conditions — connect the decrease in property tax reliance to the actual new revenue gained to ensure schools and police departments avoid budget cuts.
Consultations with local governments and local option authority — allow counties and cities to impose local surtaxes or fees if needed.
Include expiration and review provisions — mandate ongoing legislative assessments and automatic adjustments if revenue does not meet expectations.
Political and distributional Reality Check
Compromises will be necessary. There is no easy fix: replacing property taxes will lead to either higher consumption taxes (more regressive without safeguards), increased tourist taxes, or elevated business taxes. The only way to prevent regressiveness is to combine tax modifications with refundable credits and targeted assistance.
Local fiscal independence would shift. Counties/cities and school districts would lack a stable local revenue source unless the state allows local options or a revenue-sharing plan. This necessitates careful governance design.
Legal and constitutional challenges are considerable — prepare for legal disputes and an intense ballot battle.
Quick checklist for a lawmaker or policy team drafting the bill
Order a complete revenue estimate for the amount needed to be replaced (by county).
Investigate combinations (sales tax + tourist taxes + transfer tax) to discover the smallest, fairest increases.
Incorporate refundable credits/circuit breakers into the bill language.
Ensure a legally protected school funding minimum during the transition.
Add a phased implementation and automatic pauses on property tax reductions if replacement revenue falls short.
Bottom line
A sudden and complete elimination of property taxes could severely reduce funding for schools, police, fire services, and infrastructure. However, a carefully phased approach with a mixed revenue system — one that raises some consumption taxes (with safety measures), increases tourist and transaction levies, provides local options, and secures school funding through the transition — could realistically replace the revenue without damaging schools and emergency services. Nonetheless, the political challenges are significant: you will need precise data, clear protections for low-income homeowners, and voter support due to constitutional and local government concerns.
Finally keep in mind that by the time you read this article the Florida Department of Government Efficiency has been auditing cities and counties and so far they have found this https://www.flgov.com/eog/news/press/2025/governor-ron-desantis-and-cfo-blaise-ingoglia-highlight-excessive-local-government Therefore, it is important to note that there is room for improvement and smooth transition takes place to Make Florida Affordable Again.
We will leave you with this thought and its real, Abraham Hamilton, III pointed out in one of his podcasts that in the Manifesto of the Communist Party, written by Karl Marx and Frederick Engels and published in February 1848, it mentions on page 26 that: However, in most developed nations, the following ideas will mostly apply. 1. Ending ownership of land and using the income from land for public needs. Doesn’t this seem like the path we are currently on? This is the reason why there will be strong push from politicians, towns, counties, and local governments to keep property taxes. Have you ever thought about why these political groups are fighting against it and where all that money goes?
This is why you can count on OurSeniors.org a 501 c 3 not for profit, non-government organization, continue to be looking out and advocating for seniors. Check out OurSeniors.com our latest Online Store. Help support the cause!
