Ron DeSantis’ property tax plan could bring an unexpected twist for homebuyers in Florida

Home ownership is one of the things that became out of reach for a lot of Americans because of the affordability crisis. But things are about to get a lot worse, as there have been reports of houses being unaffordable in a lot of American cities and states. Now, Florida seems to be one of the newer additions to that list, as Governor Ron DeSantis’s ambition may end up crippling those who want to buy houses for the first time in the state, and even those who want to rent.

DeSantis has long been a proponent of eliminating property taxes in the state, and this has garnered support from homeowners. However, a recent report on Realtor.com states that this could cripple those who want to buy a first home in the state and those who want to rent a living space. The governor believes that property taxes in the state have been oppressive to homeowners, as it is like they are paying rent to the government.

"Property taxes effectively require homeowners to pay rent to the government,” DeSantis said in a statement. "Constitutional protections for Florida homeowners require approval of the voters in 2026. In the meantime, Floridians need relief. I am today proposing a plan that will result in—on average—$1,000 rebate checks for each homestead as a discount on their property taxes. If the Legislature acts on this plan now, we can get this done this year."

The problem with this is that if these property taxes were eliminated, the prices of properties would go up by about 7% to 9%. It would also boost the aggregate value of Florida's owner-occupied housing stock by about $200 billion to $250 billion, as per the report. While this is good news for homeowners, it is at the expense of potential first-time homeowners, who will have to pay a lot more.

“This measure would disproportionately benefit wealthy Floridians at the expense of those who don't own homes, and would make it even harder to break into homeownership because of the increased prices,” senior economist Joel Berner said. Renters would also be severely affected by this. DeSantis had argued that the tax deficit could be recovered through property taxes on second homes, rentals, and commercial properties.

Such properties would not be exempt from property taxes. As a result, renters who live in a homeowner’s second house may have to shoulder the tax burden themselves, as it will be included in the rent amount. Critics have also argued that the total elimination of property taxes could result in schools, local infrastructure, and emergency services being underfunded.

"This would be a highly regressive tax, placing more of the state's tax burden on renters, whose units are still being taxed, and those taxes are passed along to tenants," Berner added.

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