The governor of Florida, Ron DeSantis, has expressed his support for the elimination of the property tax in the state, describing it as a form of taxation that is “oppressive and ineffective.”
This proposal, which would require a constitutional amendment and the approval of at least 60% of voters, has generated both enthusiasm and concern in various sectors of society, according to the chain CBS News.
During a recent statement, DeSantis emphasized that property taxes are local taxes, not state taxes, which means that any significant change must go through the constitutional process.
"You buy a house, you buy land... and then, they have charged you a lot of taxes [for that]... is it your property or not? Just because it's on your property, do you have to write a check to the government every year?" said DeSantis.
Moreover, he pointed out that "many people cannot afford that expense. It is a big problem, we are going to look for ways to alleviate that situation".
The governor explained that "we would need an amendment to the ballot to eliminate them or even reform them", assuring that he would support any initiative in that direction.
Nevertheless, experts in fiscal policy warn about the collateral effects that a measure of this magnitude could generate.
Dr. Esteban Santis, an analyst at the Florida Policy Institute, emphasized that property taxes are the main source of funding for essential services such as education, public safety, and infrastructure maintenance.
"The question is not whether it can be done, but how those revenues will be replaced without affecting the quality of life in the state," he warned.
The debate has now reached the state Senate, where legislator Jonathan Martin has introduced a bill aimed at exploring alternatives to replace revenue from property taxes.
Among the options being considered is the increase in consumption taxes, such as sales tax, a measure that, according to some economists, could have a disproportionate impact on low-income sectors.
As the March legislative session approaches, DeSantis's proposal is poised to become a central topic of discussion.
Meanwhile, local leaders, school boards, and security agencies have yet to issue clear statements regarding the effects this reform might have on their budgets and operations.
The final decision, however, will rest with the voters of Florida, who must assess whether the removal of the property tax is the best option for the future of the state.
Parallely, the property insurance market in Florida has undergone recent changes. After years of significant increases in premiums, some homeowners may start to see reductions in their rates starting March 1, 2025.
In Miami-Dade County, it is estimated that 73% of Citizens Property Insurance policies will experience an average decrease of 6.3%, while in Broward, 50% of the policies will see a reduction of 4.5%.
However, experts warn that these discounts could be modest compared to the increases of 20% to 30% recorded in recent years. Additionally, factors such as the "Inflation Guard," an automatic adjustment that increases policy coverage annually, could lessen the real impact of these reductions.
The arrival of new insurance companies in the state could also influence rates, although their short-term effect remains uncertain.
Frequently Asked Questions about the Proposal to Eliminate the Property Tax in Florida
What does Ron DeSantis propose regarding property taxes in Florida?
Ron DeSantis proposes to eliminate the property tax in Florida considering it a form of "oppressive and ineffective" taxation. To achieve this, a constitutional amendment and the approval of at least 60% of voters in the state would be necessary.
What are the concerns regarding the elimination of the property tax?
The primary concern is how the revenues currently funding essential services such as education, public safety, and infrastructure maintenance will be replaced. Property taxes are the main source of funding for these services, and their elimination without an alternative plan could impact the quality of life in the state.
What alternatives are being considered to replace the revenue from the property tax?
Alternatives are being analyzed such as increasing consumption taxes, like sales tax. However, some economists warn that this measure could disproportionately impact lower-income sectors.
How does the proposed elimination of the property tax affect the insurance market in Florida?
Although it is not directly related, the reduction in property insurance rates could provide some financial relief to homeowners, partially offsetting the current tax burden. The rates from Citizens Property Insurance, for example, will decrease for many clients, especially in South Florida.
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