We are three months into a year where every day a front page-worthy story is relegated to the back of the paper. Between D.O.G.E, the trade war, global conflicts, a reimagining of the federal government, and recent stock market fluctuations, it is completely understandable if you missed the news that Florida is exploring the idea of doing away with property taxes.
Yes, you read that right. Your gut reaction might be to jump for joy at the prospect of actually owning your home free and clear. I’ve been following an undercurrent on social media that points out with great frustration, that one’s home – even fully paid-for – is subject to property taxes indefinitely. For years, you will work to pay off your home, only to find that one pesky string is still attached, and it can’t be severed. This can be an especially difficult problem for retirees on fixed incomes (Florida has many), and I believe it is why the state’s politicians are considering it given inflated real estate values and high insurance costs.
You may be wondering how one of the only states with no income tax could possibly afford to do away with its property taxes too; you wouldn’t be alone. A study is being commissioned to determine feasibility and identify potential revenue alternatives. My guess is that an increase in the sales tax would certainly be required, along with an additional consumption-related tax. Regardless of what the study yields or whether it is currently possible, it is being discussed, which is the first step toward any policy change.
Until a change to policy is made, it is too difficult to say how it might impact your personal finances and livelihood. I remain skeptical about the viability of removing it, but highly supportive of exploring options.
Share your thoughts on the possibility of property tax being eliminated in the comments below. Would you be supportive of a higher sales tax if it meant homeowners paid no property tax?
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