Gov. Ron DeSantis’ ballot proposal for reducing property taxes was unveiled Wednesday morning in Tampa, calling for state legislators to raise Florida’s $50,000 homestead exemptions to $250,000.

It wasn’t a complete elimination of ad valorem taxes that some had hoped for, or feared, from different perspectives. But, it could have a significant impact on the Village of Key Biscayne, if approved — first by legislators, then by voters.

“This is the one thing that we can do that’s going to make a really big difference in the lives of people in the state of Florida,” Gov. DeSantis said.

Ad valorem taxes make up about 72% of Key Biscayne’s annual revenue, so Village officials, led by Chief Financial Officer Benjamin Nussbaum and Village Manager Steve Williamson already have been preparing to figure out ways to minimize the impact for projects and staff.

⚠️ Key Biscayne At A Glance

The Proposal: Raise Florida’s homestead exemption from $50,000 to $250,000 (eventually scaling to $500,000).

The Local Stakes: Ad valorem (property) taxes account for roughly 72% of Key Biscayne’s annual operating revenue.

What’s Next: Lawmakers return for a special session this Monday. The measure requires a 60% supermajority in the Legislature to make the November ballot, where it will then need 60% voter approval.

Some 7,200 households exist on Key Biscayne, but it’s the homesteaded properties that come into play here.

A total elimination (not what Gov. DeSantis suggested Wednesday), for example, of non-school ad valorem taxes would have an “immediate impact” of $10.6 million, Nussbaum cited as an example late last year when examining more than a handful of possible tax cut eliminations.

But, the governor said, the $250,000 limit will eliminate property tax for 60% of Florida homeowners.

Lawmakers will be called back into special session Monday to begin work on the initiative.

No less than 60% in each of the House and Senate would be needed to approve putting a proposed constitutional amendment on the November ballot.

Then if the measure is approved by at least 60% of Florida voters in November, the Legislature would work on a schedule to eventually slide that $250,000 exemption up to $500,000, which the governor said would erase most property taxes on 92% of primary homes.

“The primary purpose of this is to make your homestead property tax-free and this will be historic,” Gov. DeSantis added. “I think this bottom-up approach is a better approach.”

Meanwhile, small local governments, such as in Key Biscayne, would likely need to find ways to raise funds in other ways, perhaps with higher sales, business or tourist taxes, for example, to continue projects, such as road repairs, park renovations and other beautification efforts.

“Clashing Visions” 

Gov. Ron DeSantis:

“You have a home, you’re homesteaded. You should own it. You shouldn’t be taxed — it shouldn’t be an ATM for the local government.”

Village Mayor Joe Rasco:

“This will destroy small local governments like us… We will stop having the ability to do the things we do here, with the public’s input.”

“This will destroy small local governments like us,” Village Mayor Joe Rasco had said back in December, fearing a possible total elimination of ad valorem taxes. “We will stop having the ability to do the things we do here, with the public’s input.”

According to a Redfin report late last year, Florida was home to three of the five major U.S. metros where property tax bills have increased the most since 2019. In Jacksonville, the median monthly property tax rose 59.6% to $228 between 2019 and 2024. Tampa’s increased 56.7% to $250, while Miami’s climbed 48.1% to $367.

All along, Gov. DeSantis felt that property owners have been paying “rent” to the government, even though they paid their proper taxes to fulfill their ownership dream.

“You have a home, you’re homesteaded. You should own it. You shouldn’t be taxed — it shouldn’t be an ATM for the local government,” he said last year. “That’s the vision we want to see.”