This November, Florida voters will be asked to decide on the most radical restructuring of Florida’s tax system in decades. HJR 1-F would increase the homestead exemption to $250,000 over two years and lay the groundwork for the potential elimination of homestead property taxes.
Florida legislators have argued that this measure is needed to provide financial relief to struggling taxpayers. But if this proposal were truly about affordability, it would target the lower-income homeowners who need relief most. In fact, dramatically reducing property taxes would make Miami-Dade less affordable and less livable for most residents. Essential services would be cut, and the tax burden could shift onto renters and small businesses.
Property taxes fund the local government services we all depend on every day: roads, public schools, parks, libraries, police and fire departments and Jackson Health System. Through the Children’s Trust, property taxes also support preschools, day care centers and free swim lessons across Miami-Dade.
If homestead property tax revenue disappears, it will come at the expense of these services. Miami-Dade County could lose nearly $700 million by 2028 if the homestead exemption increases to $250,000, and it would lose over $1 billion if homestead taxes are eliminated entirely. Facing budget deficits, county and municipal authorities may have little choice but to cancel after-school programs, cut police patrols and scale back hospital services. Public employees could face layoffs, affecting the local economy. Smaller municipalities would likely have to dissolve altogether.
If local governments want to maintain services at close to normal levels, they’ll be forced to collect that money elsewhere. One option is to charge fees for services that are normally free to the public, like parks, libraries and police protection. Homeowners could see a lower tax bill on the front end but end up paying higher fees on the back end, undercutting any savings. Sales taxes could also be increased — a regressive move that disproportionately affects lower-income residents, who will pay more as a percentage of their income and wealth. This would thrust the burden of public deficits on those who can least afford to shoulder it.
Another option is to raise taxes on non-homesteaded properties, which include rental and commercial properties. While tenants don’t pay property taxes directly, they do so indirectly through their rent. If non-homestead taxes rise, tenants could see a rent hike. Because half of the county’s 2.8 million residents are renters, and because most renters are cost-burdened, this would hurt a massive amount of people who are already struggling to cover the bills.
Property taxes are some of the most transparent and locally accountable taxes. Homeowners pay primarily for services from which they personally benefit and which enhance the value of their home. Tax rates are decided at a local level by city commissions, county commissions and school boards, with opportunities for public input. In a state with no income tax, property taxes are the most important tool Florida’s local governments have to raise and control their own finances. Without them, Miami-Dade and its municipalities will have to rely more on the state of Florida for funding, moving decision-making about local services farther away from our communities.
If this constitutional amendment passes, we risk making Florida a state of crumbling roads, pay-to-play parks and slow 911 response times, and where Tallahassee holds all the purse strings. Meanwhile, property insurance premiums — a primary culprit in our affordability crisis — will continue to rise, and local governments will lack the budget capacity to make needed investments in affordable housing. Before you vote this November, understand that cutting property taxes isn’t going to solve our housing affordability crisis. Instead, it will cost the very people it claims to help.
Annie Lord is the executive director of Miami Homes for All.