One expert believes Florida's plan to reduce property taxes could potentially put more of a burden on renters in the state.
This comes after the Florida Legislature approved a proposed constitutional amendment last month that could reduce property taxes for homeowners across the state. The measure now goes before voters in November.
If approved, it would increase the homestead exemption for non-school property taxes to $250,000. Under the plan, new homeowners — those who purchased a property after December 2026 — would receive a $50,000 exemption each year for four years before becoming eligible for the full homestead exemption.
Ken Johnson, founder of Florida Atlantic University's Real Estate Initiative and chair of real estate at the University of Mississippi, said the amendment could make it more difficult for state and local governments to generate revenue during future economic downturns.
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And that, in turn, could affect renters and landlords — particularly in a housing market where demand continues to outpace supply.
According to a University of Florida study, more than 900,000 renters in Florida are considered low-income, meaning they spend at least 40% of their income on housing costs.
On "Florida Matters Live & Local," Johnson said he does not believe the plan will help the affordability crisis for tenants in the state.
"At best it could be benign, but I think some of the burden will fall to tenants, the landlords being taxed at a higher rate one way or the other," Johnson said. "They will have a lot of power when you have a supply shortage."
That shortage, Johnson noted, has been building for years. According to Florida State University, the state continues to face a cumulative housing shortage of more than 120,000 units, a gap that traces back in part to the slowdown in residential construction following the 2008 housing market collapse.
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According to Johnson, property taxes generate nearly $8 billion in revenue across Florida, and while homeowners may feel relief from the property taxes, local governments may be forced to "tighten their belts," which would most likely lead to them relying more heavily on other forms of taxation to offset the loss in revenue.
"The big risk in this bill is the simple fact that it narrows the tax base in the state of Florida," Johnson said. "If we hit a national recession or other reasons for statewide economic turndown, it's going to be hard to undo, and that's when this will really come home to roost."
Overall, Johnson said the proposal highlights the challenge of balancing short-term tax relief with the long-term financial needs of local governments and the state's growing population.
This story was compiled from interviews conducted by Matthew Peddie for "Florida Matters Live & Local." You can listen to the full interview with Ken Johnson here.
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