Eliminating property taxes in Florida would result in a multi-million dollar loss of revenue that would radically alter the functioning of local public institutions. 

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The state of Florida does not have an income tax, which means that local governments rely almost entirely on property taxes to fund their operations. 

 

The main impacts by institutional sector are divided as follows:

 

Critical Underfunding of Local Services

• Massive income cut: An estimated loss of approximately $18.5 billion annually in local income is projected if primary residences are eliminated. 

• Emergency services: Fire stations and civil protection services would suffer drastic cuts in staff and equipment.

• Public safety: Local police departments (Sheriff) would see their operating budgets for patrolling and security compromised. 

• Community infrastructure: Very little budget would remain for the maintenance of road works, street repairs and public lighting. 

• Cultural spaces: Funds allocated to public libraries, local parks, and historic preservation initiatives would be frozen.

 

The Dilemma of School Districts

• School protection: The legislative proposals under discussion (such as proposal HJR 203 / HJR 201) seek to exclude school taxes from elimination.

• Segmented funding: This means that public schools would continue to receive their share of ad valorem funding to avoid collapsing the education system. 

• Indirect pressure: With the disappearance of county revenue for other services, schools would face greater pressure to cover shared administrative costs.

 

Adjustment and Alternative Taxes

To avoid institutional collapse, the state and counties would have to implement aggressive compensatory measures:

• Sales tax increase: Experts from the Florida Policy Institute warn that a drastic increase in the sales tax would be required to cover the deficit.

• Dependence on tourism: Public coffers would become exclusively dependent on spending by visitors and local residents, creating fiscal instability in times of recession.

• Burden on second homes: Counties could raise rates on commercial properties and rental homes, increasing the cost of rents.