How property tax elimination could affect Naples market

As Republican-sponsored Florida House Joint Resolution 201 — which calls for the elimination of non-school property taxes for homesteads — continues moving through the Florida House of Representatives, officials at the City of Naples and Collier County are closely watching. So are local real estate agents. 

Although property taxes are the primary source of revenue for nearly half of the state’s counties, “charges for services” compose the largest percentage of revenue for Collier, according to county tax reports. 

Still, elimination of homestead taxes could drastically shake up not only county and city revenue, but the housing market locally.  

Market effect 

The economic research team at realtor.com found that real estate prices could immediately jump 7% to 9% in the state, should property tax be eliminated — meaning current owners would automatically benefit, while first-time home buyers could face more hurdles to affordability.  

Those who already own property could more easily upgrade their luxury homes without increased ad valorem tax burden. 

“I’m in favor of it, but we need a real, healthy debate," said Bill Earls of John R. Wood Properties. “It eliminates the punishment of buying nicer real estate, but it doesn’t necessarily have to cut into services. Let’s see how we can alternatively raise the funds.” 

Earl specializes in high-end residential properties and is a proponent of an increased value-added tax, mirroring the European Union’s model, if the resolution were to pass. 

City and county revenue consequences 

“Depending on the proposals that move forward, the impact on the Board of County Commissioners’ county-wide taxing districts (General Fund, Conservation Collier and Water Pollution Control) could be up to $200 million,” said Christopher Johnson, division director of corporate financial and management services at Collier County. 

Johnson assured that senior leadership is actively monitoring all legislative updates, but said no formal plans to replace revenue streams — should the resolution pass — have been created. 

In a written statement to The Naples Press, city of Naples said property taxes account for more than 65% of the city’s general fund revenue, with more than 75% supporting essential services such as police, fire-rescue, parks and recreation and other quality-of-life services. 

The city said eliminating property taxes without a reliable replacement revenue source would significantly affect its ability to provide those services, and noted it does not see a viable path forward without state-provided revenue replacement. 

A potential image crisis 

Sue “Pinky” Benson of RE/MAX Affinity Plus saw Gov. Ron DeSantis’ bid for elimination of these taxes as edging on theater and remains skeptical. 

“It’s a great marketing tactic,” she said. “Florida is in a recovery from a public relations crisis because of our real estate prices and our most recent hurricanes.”  

Benson said buyers are drawn to Naples because of its picture-perfect upkeep, services, environment and lifestyle offered. She said with an elimination of property tax-funded amenities, that image would be affected, and in turn, possibly affect perception of the city in the eyes of potential buyers. 

Appeal to new, full-time residents  

Patrick Dearborne, also a Realtor with John R. Wood Properties, is a Greater Naples Fire commissioner and a former Collier County planning commissioner. He sees elimination of property taxes as a potential answer to the continually out-of-reach American dream.  

“I sell homes to firefighters, dental assistants, first-time home buyers, and other regular people — we want to look at all the nuts and bolts of the plan,” he said. “But why are we making people pay rent to the state on homes they’ve owned for five, 10 or 20 years? All eyes are on Florida.” 

Although he supports DeSantis’ plans, he believes the resolution will not pass if it has consequences for first responders, essential safety services and parks.  

“If it’s for homesteaded people, real estate will benefit tremendously, especially if interest rates continue to come down. I think we would see more people wanting to become full-time residents.” 

As of Dec. 19, the resolution stands in the Ways & Means Committee. If passed by the Florida State Legislature by a three-fifths vote, the resolution would require a 60% voter approval in the November 2026 general election. If approved by voters, the exemption would take effect on Jan. 1, 2027.