Florida House Advances Homestead Property Tax Elimination Plan in 80–30 Vote

What It Means for Homeowners, Local Budgets, and the Road to 2026

TALLAHASSEE, Fla. — In a decisive 80–30 vote, the Florida House of Representatives has advanced a proposal aimed at eliminating most non-school property taxes on homesteaded primary residences across the state.

While headlines have framed the move as a sweeping end to property taxes for homeowners, the reality is more nuanced. The proposal targets only non-school millage on primary residences — leaving school district taxes intact — and faces significant legislative and voter hurdles before it could take effect.

For Florida’s homeowners, local governments, and commercial real estate stakeholders, the implications are substantial.

What the House Vote Actually Does

The plan applies exclusively to properties with a registered homestead exemption, meaning:

• ✔ Applies only to primary residences
• ✔ Phases out non-school property taxes
• ✖ Does not eliminate school district taxes
• ✖ Does not apply to rental, commercial, or second homes

In practical terms, homeowners could see meaningful annual savings if the measure ultimately becomes law — but it does not represent a full repeal of property taxation. And for those profiting from their homes as an income model, for tourism or rental properties it will not repeal taxation.

Why This Matters in Context

Florida’s property tax system funds essential local services, including:

• Police and fire departments
• Infrastructure maintenance
• Parks and libraries
• County and city administrative services
• Emergency response operations

Removing a significant portion of homestead-generated revenue would force structural fiscal adjustments at the county and municipal level.

The key policy question is not whether homeowners benefit — it is how local governments will offset the lost revenue.

The Revenue Gap: Where Would Funding Come From?

If enacted, counties and municipalities would likely explore one or more of the following:

1. Sales Tax Adjustments

Florida already relies heavily on consumption taxes. Expansion or increases in state or local sales taxes could partially offset lost property tax revenue.

2. Commercial & Non-Homestead Rebalancing

Local governments may increase millage on:

• Commercial properties
• Apartment communities
• Non-homesteaded residential properties

Such shifts could ripple through rental markets and commercial leasing environments.

3. Budget Restructuring & Service Cuts

Municipalities may reduce discretionary services or delay capital projects.

4. Greater State-Level Fiscal Centralization

The state could assume a larger role in revenue distribution, potentially reshaping local governance autonomy.

Each of these scenarios carries implications for Florida’s broader real estate and economic landscape.

Political Momentum & Midterm Dynamics

The vote positions property tax reform as a defining issue heading into the 2026 midterm cycle.

Supporters frame the measure as:

• Tax relief for middle-class families
• Protection for seniors on fixed incomes
• A response to inflation and insurance pressures

Opponents warn of:

• Long-term fiscal instability
• Increased burden on renters and businesses
• Erosion of local government funding authority

Regardless of final outcome, the 80–30 vote signals that property tax reform will remain central in Florida’s political discourse.

What Happens Next?

The proposal must:

1. Pass the Florida Senate
2. Be placed on the November 2026 ballot
3. Receive 60% voter approval statewide (required for constitutional amendments)

Until those steps occur, the measure remains a legislative initiative rather than enacted policy.

Real Estate Implications

For Homeowners

• Potentially increased disposable income
• Enhanced homeownership appeal
• Possible upward pressure on home values

For Rental & Multifamily Markets

• Risk of higher operating costs if tax burdens shift
• Potential rent adjustments to offset increased millage

For Commercial Real Estate

• Assessment volatility
• Budget reallocation affecting infrastructure and development timelines

For Florida’s rapidly growing markets — from Tampa Bay to Jacksonville to Southwest Florida — structural changes in tax policy directly influence long-term investment modeling and municipal planning.

The Broader Fiscal Conversation

Florida has long positioned itself as a low-tax, pro-growth state. Eliminating most homestead property taxes would deepen that identity — but also require rethinking how billions in local revenue are generated annually.

The 80–30 House vote is a milestone. It is not yet law. But it represents one of the most consequential tax policy debates in Florida in decades.

As the measure advances, Extended Reach USA will continue monitoring legislative developments, fiscal modeling discussions, and market responses across the state.