TALLAHASSEE, Fla. — Gov. DeSantis came out strongly against any significant increases to the Florida state sales tax Tuesday evening, but left open the question of how local governments would be funded if lawmakers follow through with his proposal to eliminate the property tax.
DeSantis was reacting to a report by the Florida Policy Institute (FPI) that suggested the Sunshine State would have to double sales taxes to at least 12% to make up the loss of $43 billion in revenue.
FPI claimed property taxes accounted for 18% of county revenue, 17% of municipal revenue, and 50-60% of school district revenue in the state.
“I’m pretty sure the Legislature would not raise the sales tax and I’m quite certain I’d veto any increase,” DeSantis commented on X. “This is a bogus report.”
DeSantis previously backed the elimination of property taxes to bring homeowners struggling under inflation and higher insurance costs some relief.
State lawmakers have filed a bill to study eliminating the property tax, which would presumably come with recommendations of how to cover the funding shortfall.
Florida wouldn’t have two of the three traditional major levers at its disposal if it declines to touch the sales tax, as the property tax would be eliminated and the state does not have an income tax.
Lawmakers have not addressed FPI’s second criticism, that eliminating the property tax would benefit wealthy households the most and lead to lower-income and middle-class households shouldering more of the tax burden, even though renters already pay property taxes that are folded into their monthly rents.
Local leaders are also hoping for answers.
“Something close to 100% of the cost of our police and fire departments here in Oviedo are funded by property taxes,” Oviedo Mayor Megan Sladek wrote on Facebook, suggesting the state create police and fire “fees” instead of taxes. “We need a RECURRING form of GUARANTEED revenue… Until public safety is figured out, I think ditching property taxes is a dumb idea.”
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