MIAMI. — The Florida Association of Counties (FAC) warned that the property tax reduction approved by the state Congress, and which will be put to a popular vote in November, could translate into an increase in rents if counties choose to raise the tax rate to compensate for the loss of revenue derived from the new homestead exemption.
Defenders of the amendment, on the other hand, emphasize that the same text reduces the annual valuation cap for non-residential properties from 10% to 5%, a mechanism designed to protect rental owners against abrupt increases.
Fiscal transfer, according to the FAC
The FAC described the proposal as a “tax shift” rather than net tax relief.
The association’s deputy policy director, Jeff Scala, raised the concern during a statewide call with organization members Monday.
“Rents could rise as landlords pass on the additional tax burden imposed on non-homestead properties to tenants,” Scala warned.
The official added that the measure will make Florida less affordable: “They present it as a reduction, but small businesses, all businesses, are going to feel the pain. Tenants will not receive an exemption,” he said.
5% cap, a shield
The amendment incorporates specific protection for non-homestead properties, a category that includes rental apartments, second homes, investment properties and commercial premises.
The text reduces the maximum limit of annual increase in the assessed value of these properties from 10% to 5%, a mechanism known as the “assessment cap.”
The National Federation of Independent Business (NFIB) supports that cap as insurance against fiscal displacement that could hit businesses and landlords.
“The proposal seeks to isolate commercial properties from a tax transfer through a 5% cap on the annual assessed value,” the organization told its members.
Impact on South Florida counties
The FAC estimated the accumulated hit for the state’s 67 counties at $3.6 billion in fiscal year 2027-2028 and at $6.4 billion for fiscal year 2028-2029.
Projections by South Florida jurisdiction point to a loss of close to $340 million for Miami-Dade in the period 2027-2028, $260 million for Broward and $280 million for Palm Beach.
The association indicated that Miami-Dade already operates with a budget strained by the recent creation of constitutional offices such as the sheriff and the supervisor of elections.
Local services in the spotlight
The League of Florida Cities agreed with the FAC that the plan results in a shift in the tax burden.
Holly Smith, Sanibel council member and president of that organization, maintained that when primary residences leave the tax rolls “the cost of services does not disappear, it is transferred to businesses and non-homestead properties.”
For his part, FAC Deputy Executive Director Cragin Mosteller estimated that broader proposals to reduce property taxes could cut county revenue by up to 40%, with repercussions on public safety, firefighters, parks and libraries.
Governor’s defense
DeSantis has rejected warnings about the impact on local services. He argued that property tax collection went from $32 billion to $60 billion in seven years and could reach $83 billion by 2032 without reform.
“Of course we can do this. Of course we can. Don’t let anyone tell you it can’t be done,” declared the president in defense of a proposal that will require at least 60% of the votes in the November referendum.
