Podcast: Political Realities of Property Tax Reform

As Florida’s lawmakers gear up for another session focused on property tax reform, State Rep. Alex Andrade, a Pensacola Republican, offers insights on the appeal of tax reform and the serious challenges that lie ahead.

  • Andrade said, “My personal perspective is I think some type of constitutional proposition to go on the ballot next November should relate to something like homestead exemptions to property taxes. I think that would make the most sense.”

However, there’s an elephant in the room, which cannot be ignored. He said, “The big topic that makes me sweat far more, makes me concerned far more is what, if anything, we’re going to do to replace that revenue.”

Andrade argued that moving forward without a comprehensive revenue replacement plan would be “reckless” for the state to propose changes that “could dramatically affect hundreds of municipalities’ budgets without really digging in on it.”

  • The Legislature is currently examining these issues through the House Select Committee on Property Taxes, which held a two-day review of property tax issues this week.

Hidden Victims of Tax Reform

Andrade pointed out that winners and losers are created with significant tax changes..

“If you’re a 100% disabled veteran, you don’t pay anything on your property taxes right now, and we replace that with some type of a sales tax, well, you’re going to be paying more at the cash register for everything that you buy and purchase,” Andrade explained. “So that’s why I say there’s always someone who’s going to feel like a loser in these tax policy questions.”

Seniors have benefited from Save Our Homes protections, which have kept their assessed values artificially low compared to market rates. Any shift from property taxes to alternative revenue sources could potentially burden these groups, who currently receive significant tax relief.

Exposing Current System Inequities

Despite his concerns about implementation, Andrade described Florida’s current property tax system as “completely unfair.”

“Let’s just take an example of two similarly situated houses. They’re the same size, same build, and have the same value on the open market. One person has lived in that house for two decades; their assessed value on that house, which they are taxed on, could be say, $100,000. But on the open market, that house’s actual value is something like $750,000. Their neighbor, on the other hand, who just moved into that house, gets assessed that their home’s value is $750,000, and they have to pay the millage rate on that full $750,000.”

This disparity means neighbors with identical demands on government services pay “astronomically different amounts for the same demands on the system,” creating what Andrade views as a fundamentally unjust situation.

Legislative Process and Practical Challenges

The House Select Committee on Property Taxes, co-chaired by Rep. Vicki Lopez (R-Miami) and Rep. Toby Overdorf (R-Palm City), is examining various aspects of potential reform.

  • “We’re educating, obviously, right now committee members, but hopefully the public is listening to what that would mean in terms of reduction of any kind of revenue in their communities,” Lopez said.

The committee received presentations about school funding and rural “fiscally constrained” counties with limited tax bases. These counties present particular challenges, with Lopez noting that Holmes County, with approximately 15,000 residents, has five municipalities that may need to reconsider their viability.

  • House Speaker Daniel Perez outlined several potential changes for consideration, including boosting the homestead exemption to $500,000 for non-school property taxes, allowing the Legislature to raise homestead exemptions without voter approval, and changing caps on annual increases in assessed values.

Local Government Pushback

Local government officials pushed back. Casey Cook, chief of legislative affairs for the Florida League of Cities, defended local governments as “the most transparent forms of government in the state,” arguing that municipal officials face daily demands from neighbors expecting higher service levels.

  • “Nobody likes paying taxes, but safety isn’t free. Clean isn’t free,” Cook told committee members. “Those taxes pay the police officers. They pay the firefighters. They pay the Parks and Rec employees. They pay for the new swing sets at the parks.”

Criticism of DeSantis

Andrade criticized Gov. DeSantis’s approach to the property tax issue. Rather than engaging in substantive policy discussions, the governor has simply been “pounding his desk and saying, do your jobs.”

  • “He just thinks that it’s a great talking point at the daily press conferences he has,” the lawmaker continued. “But if Gov. DeSantis doesn’t want to be an adult in the room and engage in the discussion, but actually replacing that revenue, like an adult, like a grownup living in the real world, then the legislature’s going to have to do it for ‘em.”

Despite the challenges and criticisms, Andrade remains confident that voters will see some form of property tax reform on their ballots: “I’m confident we’re going to put some referendum on the ballot related to eliminating or reducing property taxes.”

The committee will continue holding meetings and is expected to present proposals before the start of the 2026 legislative session in January.

Note: The News Source of Florida provided coverage of the House committee meeting.


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Author: Rick Outzen

Rick Outzen is the publisher/owner of Pensacola Inweekly. He has been profiled in The New York Times and featured in several True Crime documentaries. Rick also is the author of the award-winning Walker Holmes thrillers. His latest nonfiction book is “Right Idea, Right Time: The Fight for Pensacola’s Maritime Park.”