Florida Governor Ron DeSantis provided an update Tuesday on his push to eliminate the state’s property tax during his State of the State address.

DeSantis said he wants more tax relief to come to Florida residents, arguing that homeowners should not have to pay “perpetual rent to the government.”

Why It Matters

Florida is one of the more tax friendly, offering no personal income tax. DeSantis has proposed the idea of doing away with the state’s property tax as well as a key part of his economic agenda.

What To Know

DeSantis said he supports the state legislature proposing a constitutional amendment that would allow voters to decide whether to pay property taxes.

“You should be able to own your home without paying perpetual rent to the government,” DeSantis said Tuesday.

While the state has some of the lowest tax obligations nationwide, DeSantis said “our citizens have been squeezed” by rising property taxes.

“Seven years ago, local governments throughout Florida took in about $32 billion in property tax revenue. Last year, that number rose to a whopping $56 billion,” DeSantis said. “We have residents locked into their homes because they can’t afford the taxes on a new residence.”

He added that ultimately, the voters should be able to decide the fate of property taxes for themselves in the Sunshine State.

“The legislature has the ability to put a measure on the ballot to provide transformational relief to taxpayers,” DeSantis said. “Let’s resolve to all work together, get something done and let the people have a say.”

Still, DeSantis may be backing off from his previous comments a bit, according to Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast.

“He may be backing off those comments a bit — especially after realizing that the state’s rainy-day fund is flush largely because of the massive inflow of property tax revenue, which he cited at roughly $56 billion,” Thompson said. “Florida is nowhere near eliminating property taxes, despite labeling them a ‘perpetual rent.’ This feels more like a familiar Republican tactic heading into the midterms: make big promises about putting more money back into the hands of voters.”

What People Are Saying

Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “The Governor’s proposal is sure to find broad-based support from property owners, especially in Florida where property values have rapidly accelerated in the years since the pandemic. The question isn’t so much about whether there’s support for this action, but rather can the state afford to eliminate those taxes at all levels. Property taxes are used to fund many essential services in the state at the local level, and the issue would be finding a way to replace that revenue if it were to suddenly go away.”

Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: “More realistically, Florida may follow Texas’s path and reduce property taxes — not eliminate them outright. Property taxes fund essential services like 911, fire departments, and public schools. Eliminating them would shift significant financial pressure onto other parts of state government that are legally required to run balanced budgets.”

What Happens Next

If voters decide on such a measure regarding property taxes, funding for other state initiatives could be at stake.

“There are arguments to be made on both sides, as many of these services need funding, and homeowners are feeling continued financial pressure from rising values,” Beene said. “The odds are high this isn’t a short-term proposal and will be one widely debated in the long-term before any type of solution emerges.”

In a polarized era, the center is dismissed as bland. At Newsweek, ours is different: The Courageous Center—it’s not “both sides,” it’s sharp, challenging and alive with ideas. We follow facts, not factions. If that sounds like the kind of journalism you want to see thrive, we need you.

When you become a Newsweek Member, you support a mission to keep the center strong and vibrant. Members enjoy: Ad-free browsing, exclusive content and editor conversations. Help keep the center courageous. Join today.