Gov. Ron DeSantis launched a trial balloon that probably won’t get very high before it is shot down.
Eliminating property taxes sounds like a good idea until you start trying to figure out how to replace the revenue.
Jacksonville soaks property owners for more than $1 billion a year. That’s a large bite out of a $4 billion general government budget and doesn’t even address what the school system collects.
Statewide, local governments collect more than $50 billion each year.
Nevertheless, the governor’s suggestion should spark an interesting debate, which may have been its main purpose.
The two most likely revenue replacements are the state sales tax, and an income tax.
An income tax, favored by liberals, would be devastating. Although 41 other states, and the District of Columbia, have an income tax, the free state of Florida does not.
The Sunshine State relies heavily on its sales tax, and for good reason. Tourists pay 20-25 percent of the amount collected – a windfall for the state’s residents.
Five states have no sales tax. Fourteen have rates higher than Florida’s 6-cent tax, which produces about 75 percent of the state’s annual revenue.
Thus, those inclined to replace the property tax must show how it would benefit Florida residents to pay a higher sales tax to be distributed to local governments as a replacement for the property tax. The state itself is not permitted to levy a property tax.
