By now you’ve probably heard the rallying cry coming out of Tallahassee: abolish property taxes in Florida. On its face, it sounds like a dream—true ownership, no more annual tax bill tied to the roof over your head, and a clean break from one of the most resented taxes Americans pay.
But as always, the fine print matters. A lot.
A newly circulating explainer video by Tom McNamara, a Florida Real Estate Agent, lays out what’s really on the table in Florida’s biggest tax shakeup in decades—and once you do the math, the plan looks far more complicated than the slogans suggest.
👉 Watch the full breakdown here: https://www.youtube.com/watch?v=jfmHAVIvqp8
The Offer on the Table
The proposal being marketed as “property tax abolition” replaces local property taxes with:
- A 9% statewide sales tax (with realistic totals reaching 10–11% once local add-ons are included)
- A 5% “exit tax” charged when you sell your home
- Continued use of fees by local governments—with no hard cap unless lawmakers add one
In exchange, property taxes would theoretically go to zero.
The question is whether Floridians actually come out ahead—or just trade one permanent tax for several new ones.
A War of the Bills in Tallahassee
Inside the Florida Legislature, two competing approaches are taking shape:
Plan A: Homestead Relief (HJR 201)
- Expands relief for homeowners
- Keeps property taxes in place
- Slower, incremental change
- Fewer economic shock waves
Plan B: Full Abolition (HB 791 + HJR 787)
- Eliminates property taxes entirely
- Shifts revenue to higher sales taxes and exit fees
- Markets itself as “true ownership”
- Comes with major tradeoffs—and risks
This is not a technical disagreement. It’s a philosophical fight over how Florida should fund local government.
The 9% Sales Tax Reality
The headline number is 9%, but most Floridians wouldn’t actually pay 9%.
Once local surtaxes are layered on, many purchases would land closer to 10–11%, hitting:
- Groceries beyond exemptions
- Big-ticket household items
- Cars, appliances, repairs, and services
Sales taxes are regressive by design, meaning lower- and middle-income families feel them the most.
Who Wins—and Who Doesn’t?
Scenario 1: A Typical Home owning Family
On paper, some families could see a net win, especially those with high property tax bills and modest spending habits. But the margin is thinner than advertised—and disappears quickly as spending rises.
Scenario 2: Renters
Renters get no immediate relief.
They pay higher sales taxes right away, while any benefit from lower property taxes depends on landlords eventually passing savings along—if they ever do.
Short-term pain. Uncertain long-term gain.
Scenario 3: Retirees
Many retirees initially come out ahead—until the exit tax enters the picture. Selling a longtime home later in life could trigger a sizable 5% hit, erasing years of savings.
The 5% Exit Tax: A Market Freezer
The proposed 5% fee on home sales isn’t just a revenue tool—it could fundamentally distort Florida’s housing market.
- Sell before the fee hits? You might dodge it.
- Sell after implementation? You pay up.
That creates a dangerous incentive to rush listings, freeze transactions later, and reduce mobility for seniors, families, and workers.
The Fee Loophole Nobody’s Talking About
Even if property taxes disappear, fees don’t.
Without strict guardrails, cities and counties could replace taxes with:
- Stormwater fees
- Mobility fees
- Special assessments
- “Non-ad valorem” charges in everything but name
That’s how you end up with Property Tax 2.0—just harder to track and easier to raise.
“Why Not Just Cut Spending?”
It’s the most common question, and a fair one.
Florida would need to replace roughly $40 billion in local revenue. Even aggressive audits and efficiency reforms don’t come close to that number—meaning new revenue streams are inevitable under full abolition.
The debate isn’t whether government costs money.
It’s how transparently—and fairly—we collect it.
The Clock Is Ticking
Here’s the timeline:
- January 13 – Legislative session begins
- March 13 – Deadline for bills to advance
- November 3 – Voters decide (if it reaches the ballot)
Once this framework is locked in, undoing it would be extraordinarily difficult.
The Real Question for Floridians
Florida’s “property tax abolition” plan sounds like freedom… until you do the math.
So what are you for?
- Plan A: Partial relief with fewer shocks?
- Plan B: Total abolition with higher sales taxes, exit fees, and new risks?
And most importantly:
👉 Should any bill include hard caps on non-ad valorem fees to prevent a backdoor property tax revival?
Now is the moment to read past the headlines, pressure lawmakers, and demand guardrails—before a permanent tax experiment is locked into Florida’s constitution.
Eye on Jacksonville will continue tracking this closely and we encourage you to watch the full video yourself. It is very well done and explains how this will affect you in simple language and math.
