(The Center Square) – Elimination of Florida property taxes and replacing it with a consumption tax is being proposed in the House of Representatives.
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Rep. Ryan Chamberlin, R-Marion, wants a study of how to phase out property taxes, which generated $25 billion last year.
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“This is the beginning step,” Chamberlin told The Center Square, speaking of House Bill 1371. “It may take a few years. We’re going to come back and put some serious meat on it in its next phase.”
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Having a study completed will give lawmakers a factual basis for moving forward with a phase out of property taxes in the future, the legislator said.
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“We’re bringing all the data to the table,” he said. “It’s step one of the plan. We’re not trying to do away with the funding. We’re just trying to do it a smarter way.”
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The bill calls for the study to be completed by February 2025.
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With property taxes, you never really fully own your property, Chamberlin said. Even when the mortgage is paid in full, property owners still face an annual tax bill.
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“We never own your property and we are paying taxes on unrealized gains,” Chamberlin said. “If you buy a piece of property for $100,000 and the property appraiser says it’s now worth a million, even though you’ve never sold it or put that $900,000 in the bank, you are paying taxes on it annually.”
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The bill calls for the state’s Office of Policy Analysis and Government Accountability.
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“A consumption tax seems to be the fairest tax,” Chamberlin said. “It takes into consideration all the people who travel to Florida and purchase things. It seems to be a solution, but I am not opposed to some other creative ideas. I think it’s time to do it.”
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Under Florida law, the state is prohibited from charging property taxes, according to a summary of the bill. But counties, municipalities, school districts, and some special districts may impose property taxes based on the value of the property, the summary says.
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Florida has no income tax. Sales tax is 6%.
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