Joint Legislative Meeting – Communicating the Importance of Property Taxes (2025 Florida League of Cities Conference)

Councilmember Marlene Shaw

Speakers: Charles T. Chapman, IV, Legislative Consultant, Florida League of Cities Casey Cook, Chief of Legislative Affairs Representative Christine Hunschofsky, Florida House of Representatives, District 95

If Florida were to eliminate property taxes, it would be one of the biggest shifts in the state’s financial structure in decades. Property taxes are the main funding source for local governments, fire departments, police, libraries, parks, infrastructure and maintenance, and public schools. Removing them would create serious challenges and ripple effects.

The greatest concern is that if it comes to a vote, voters may choose to eliminate property taxes without fully understanding the serious consequences for public safety, local services, and schools. The speakers encouraged everyone to start having discussions regarding this possibility now.

The following are results regarding people’s concerns:

Insurance is actually the top issue vs property taxes. By a margin of 8 to 1, residents
said insurance is their biggest concern. Premiums have risen 100% in just three years,
and many believe fixing insurance must come first.

Other results:
Public Safety – 54%
Water and Sewer – 15%
Parking and Recreation – 10%
Garbage and Recycling – 8%

Taxes and Special Interests

Two-thirds (66%) of residents said tax changes would benefit special interests. The speaker emphasized that eliminating property taxes would not be a true tax cut, but rather a tax shift, with the greatest benefits going to snowbirds and special interest groups.

Unintended Consequences

Reducing funding for police could lead to more crime, which in turn would drive insurance costs even higher—the very problem residents are most worried about.

Constitutional Requirement

Because Ad Valorem property taxes are written into Florida’s Constitution, any attempt to eliminate them would require a statewide vote of the people.

Additional Information from Other Sources:

The following are main concerns and impacts:

1. Loss of Local Revenue
   Property taxes generate tens of billions annually for Florida’s counties, cities, and
   school districts. Without them, local governments would lose their largest stable funding stream.
2. School Funding Crisis
   About half of all property tax revenue goes to public education. Eliminating it would severely undercut K-12 funding unless replaced, potentially increasing class sizes, lowering teacher pay, or cutting programs.
3. Shift to State-Controlled Taxes
   To make up the lost revenue, the state might need to raise sales taxes, income taxes
   (currently none in Florida), or other fees. This could shift financial power away from local governments to Tallahassee, reducing local decision-making.
4. Increased Inequality
   Sales taxes or fees (the most likely replacement) are regressive, meaning they hit
   lower-income residents harder than wealthier homeowners. Property taxes, by contrast, are tied to wealth/assets.
5. Impact on Services
   Local services like road repair, fire rescue, police protection, and libraries would be
   strained or cut back unless new revenue sources are created.
6. Credit Rating & Bond Issues
   Cities and counties rely on predictable property tax revenues to borrow for infrastructure projects. Without them, credit ratings could drop, borrowing costs could rise, and major projects (stormwater, water systems, etc.) could stall.

Potential Impacts

1. Higher Sales Taxes –  Florida already has a 6% state sales tax, with counties adding 0.5–2%. Eliminating
   property tax could require sales tax rates to double or more, pushing them into 10–15% territory.
2. Tourism Burden – Some argue higher sales taxes would shift more costs to tourists rather than residents, but tourists don’t spend on schools or infrastructure equally, so revenue gaps may remain.
3. Housing Market Effects – Eliminating property tax could increase home values and demand in the short term (since carrying costs drop). But in the long run, deteriorating schools and services could reduce community desirability, dragging values down.
4. Local Government Cuts – Cities and counties may have to slash staff, delay maintenance, and cut services, which could harm residents and businesses that rely on strong infrastructure and safety.
5. Equity Shifts – Renters may not benefit (since landlords could pocket savings instead of reducing rent), while wealthy homeowners with high-value properties would save the most.
6. Greater State Control – Local governments might become more dependent on Tallahassee for funding, reducing flexibility to respond to community needs.