Florida Senator Don Gaetz Endorses DeSantis Plan to Phase Out Homestead Property Tax
Why It Matters
Florida homeowners and local governments are watching closely as a Special Legislative Session this week takes up a sweeping change to the state’s property tax structure. The proposal would eventually eliminate the homestead exemption entirely — a move supporters say would relieve residents of rising tax burdens but critics warn would drain billions from schools and municipal services.
What Happened
State Sen. Don Gaetz, a Republican from the Florida Panhandle, announced his support for Gov. Ron DeSantis’s plan to restructure and ultimately abolish Florida’s homestead exemption. The measure, Senate Joint Resolution 2-F, is before lawmakers during the current Special Session.
Under the DeSantis proposal, the homestead exemption limit would rise to $150,000 beginning January 1 of next year, then increase to $250,000 the following year, before being phased out entirely over time. Floridians who establish residency after a constitutional amendment takes effect would be required to continue paying homestead property taxes for five years — a provision DeSantis described as intended to limit undue benefit to new arrivals.
Gaetz framed his backing of the measure in terms of economic relief for older and lower-income residents. “Property taxes are especially hard on families with fixed incomes,” the senator wrote in a newsletter to Panhandle constituents. “The soaring increase in assessed property values… isn’t keeping up with pensions and Social Security.”
Gaetz acknowledged that alternatives exist but argued the current legislative environment leaves the DeSantis plan as the most viable path forward. “Neither the Senate nor the House has proposed a plan that could pass the Legislature and gain the support of the Governor and the voters,” he said.
By the Numbers
Passage of the resolution requires approval from 60 percent of both chambers of the Florida Legislature. The Florida Policy Institute, a nonpartisan nonprofit, released an analysis projecting significant fiscal consequences if the measure advances:
- $5 billion — estimated average annual revenue loss to school districts if the exemption is approved
- $8.59 billion — projected annual school district revenue loss if homestead property taxes are eliminated by fiscal year 2030–2031
- $4.8 billion — estimated initial annual loss to local governments
- That local government figure is projected to approximately double by fiscal year 2030–2031
- 5 years — length of time new Florida residents would still owe homestead taxes after a constitutional amendment takes effect
Zoom Out
Florida is not alone in wrestling with the tension between property tax relief and local government funding. Across the country, rapidly rising home values have pushed assessed property values — and corresponding tax bills — well beyond what many longtime residents anticipated when they purchased their homes. Several states have experimented with homestead exemption expansions, assessment caps, and circuit-breaker programs designed to protect fixed-income households.
Florida’s existing homestead exemption has long been a cornerstone of the state’s property tax structure. Eliminating it entirely would represent one of the most significant shifts in Florida tax policy in decades, affecting not just homeowners but the funding formulas that local governments and school districts rely on for core services. The state’s broader budget debate, including pending vetoes and spending decisions, adds another layer of uncertainty to the fiscal picture.
What’s Next
The Special Legislative Session is underway this week, with SJR 2-F requiring supermajority support in both chambers before it could advance to Florida voters as a constitutional amendment. If lawmakers approve the resolution, voters would ultimately decide whether the homestead exemption is eliminated — meaning the political debate is likely to extend well beyond the current session.
Opposition from local governments, school boards, and policy organizations is expected to intensify as the session proceeds. The Florida Policy Institute’s cost projections are already circulating among critics, and local officials who depend on property tax revenue are pressing lawmakers to weigh the consequences before voting.