Experts split on impact of Florida property tax proposal

A proposed property tax relief referendum expected to appear on the November 2026 ballot is drawing mixed reactions from property experts and Realtors across Southwest Florida. While some say it could deliver meaningful savings for homeowners, others warn it could strain local budgets and drive up housing prices over time.

The referendum follows Gov. Ron DeSantis’ request for legislators to reduce property taxes. In response, the Florida House introduced eight bills focused on tax relief.

In an Oct. 16 memo, House Speaker Daniel Perez said the bills all include two key provisions. “First, they will have language that specifically prohibits an affected government entity from reducing funding for law enforcement. Second, they exempt school taxes,” Perez wrote. He added that property taxes make up 46% of school funding, or roughly $21 billion.

One bill — HJR 201 — would eliminate nonschool homestead property taxes entirely.

Charlotte County Property Appraiser Paul Polk analyzed the proposal and said it would have significant implications for local residents. “Homestead properties would be exempt from all nonschool ad valorem taxes,” Polk said. “It also prohibits counties and municipalities from reducing total funding for law enforcement.”

Polk used a TRIM notice to illustrate the changes. He said that under the bill’s language, homesteaded properties could be exempt from General Fund, Lighting, Southwest Florida Water Management and West Coast Inland Navigation taxes.

“In Charlotte County there is a line item for law enforcement,” Polk said. “If counties are prohibited from reducing law enforcement funding, it is my opinion that would not be exempt. There is a portion of the general fund which goes toward the sheriff, as well.”

He added that it remains unclear how the voter-approved Environmentally Sensitive Lands program would be handled. Municipal Service Benefit Units and non-ad valorem assessments would not be exempt, he said, because they are not based on property value.

Local Realtors expressed mixed opinions about the proposal’s impact.

“I think most people are going to vote yes because most are under the impression that they won’t be paying any taxes, which is not the case,” said Cindy Marsh-Tichy, president of Realtors of Punta Gorda–Port Charlotte–North Port–DeSoto Inc.

She said she would prefer adjusting the homestead exemption to mirror inflation and questioned how the state would replace lost revenue.

Marsh-Tichy also noted that lower property taxes could attract new residents from high-tax states. “Look at Delaware — low property taxes draw retirees,” she said.

However, she warned that an influx of new residents could drive up demand and raise home prices. The exodus to Florida and high demand for homes would drive up home prices and “may very well price people out of the market,” she said.

Home prices in Southwest Florida have fallen from their pandemic-era peaks, when many people relocated from northern states seeking more space and better weather. Remote work also allowed many to make Florida their permanent home.

Although the market has favored buyers in recent months, there are signs of a turnaround, said Carla Nix, a Realtor with The Nix Team at Coldwell Banker Star Realty in Punta Gorda.

In her video updates, Nix has encouraged buyers to act before the end of the year to take advantage of the homestead exemption. She said prices for luxury homes have already climbed about $100,000 compared with last season.

Any property tax relief would have a positive effect on the market and would attract buyers from other states, she said.

Shelton Weeks, Lucas Professor of Real Estate at Florida Gulf Coast University, said the legislation could provide short-term benefits for homeowners but could also raise housing costs in the long run.

“Likely over time you’d see an increase in housing prices,” Weeks said.

He added that while the measure could help those already living in Florida, it likely wouldn’t drive a major wave of relocation. The tax relief legislation wouldn’t be strong enough to entice people to move to Florida, “unless they were on the fence,” he said.