Possible Property Tax Law Change?
 

Thought this news item might be of interest...


TAMPA, Fla. (WFLA) — Florida lawmakers could eliminate all property tax and replace lost revenue through a consumption tax, according to the Florida Senate.

House Bill 1371, originally filed on Jan. 5, exempted $100,000 of the value of real property from being taxed. Those over the age of 65 would be qualified to be exempted from property tax up to $250,000.

Lawmakers would have to create rules, an application process, and documentation to prove age and property ownership.

In a revised version of the bill filed on Feb. 1, it states that the Office of Program Policy Analysis and Government Accountability is to study what the impact would be of getting rid of all property tax and replacing that lost money through a consumption tax. They are to submit their findings to the President of the Senate and Speaker of the House Representatives by Feb. 1, 2025.

The act will go into effect when it becomes a law.

Consumption tax = sales tax.

So the question boils down to do you want to pay your taxes with every non-food purchase or all at once.

A consumption tax would apply to tourists but I would expect a consumption tax that could replace property tax would be quite high - I would think at least 10% if not more - so paying about 18%+ sales tax would probably reduce tourism.

I remember reading that NYC tried that a few years ago with an enormous increase in hotel taxes - and they got less money because people stayed away from NYC. NYC then changed the law back. You don’t want to kill the goose!

Also, property taxes are very consistent year to year. If we had a recession, consumption would be reduced so taxes would be reduced so school and other government funding could have wide variations from year to year.

Consumption Tax: Definition, Types, vs. Income Tax - Investopedia:

"Consumption taxes are taxes on the purchase of goods and services. Examples of consumption taxes include sales taxes, excise taxes, VAT taxes, and taxes on imported goods."


What consumption taxes are not is a tourism or hotel tax except that tourists pay sales tax.

The state of Florida already has ample data on sales tax in economic down turns as well as boom cycles. It is not difficult to forecast. In other words, it is not difficult to fund everything with an increase in sales tax that was once funded with property taxes and do this in a way which does not result in school funding fluctuating sharply year to year.

Smoke and mirrors, shell game to raise taxes

Dead in the Water ! Too much County Income with Property Taxes ... Another Legislator Soliciting for Votes

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Sounds like a ploy to shift the funding of schools from the local level to the state level. New Jersey had this and eventually it turned into spending "other peoples money." Chris Christie attempted to shift the expenses back to the local level.
If cities/counties take care of their turf and provide a safe and affordable place for people to live, there would be no need to "spread the burden."

Is the proposal apply to "all" property taxes? Taxable value reduced across the board for everything based on value?

OR just reducing county taxes without lowering school taxes?
What about other taxes based upon value like fire?
Will the homestead exemption go away?

I’d be all for it if the proposal applies to both full time Florida residents as well as part time homeowners whose primary residence is in another state.

The proposal is to require a study to determine the impact.... There is no plan other than to take a look at the idea. The state will study it for a year and present the results next February (2025).

Property taxes are definitely too high. Unincorporated Sumter already scams from Wildwood for their sheriff’s department. Residents pay for a local police department AND for the sheriff’s department. Fun Fact: Commissioners gave them a little over 42 million last year alone to take care of law enforcement.

No incentive for it to apply to part time homeowners; they can't vote. That's the secret to the Florida economic miracle - keep taxes low for residents by skimming money off of tourists and part timers - in other words, people who can't vote.

Here’s how taxes works. They never even go down and will always go up cause there’s always good cause to raise taxes in what ever form it rears it’s ugly head. Don’t have to budget someone’s else’s money.

Why mess with something that is very good.