Florida Governor Ron DeSantis recently argued that the state’s property tax system benefits full-time residents because most revenue comes from vacation homes, rentals, and businesses. But does the data back his claim? Here’s a fact-check.
DeSantis’ Statement: Key Details
Speaking at a press conference, DeSantis emphasized:
“A lot of the property tax burden is borne by people who don’t live here full-time or by businesses.”
His argument leans into Florida’s status as a tourism and real estate hub—but is the tax breakdown that lopsided?
Florida Property Tax Revenue: The Numbers
Per the Florida Department of Revenue, property taxes come from three primary sources:
1. Homesteaded properties (primary homes)
2. Non-homesteaded homes (vacation properties, rentals)
3. Commercial real estate (businesses, retail, offices)
A 2023 Florida Policy Institute analysis shows:
– 40% of residential property taxes come from primary homes.
– 30% from second homes/rentals.
– 30% from commercial properties.
Bottom line: 60% of Florida’s property tax revenue stems from non-primary sources—supporting DeSantis’ claim.
Why This Tax Structure Matters
Florida’s Save Our Homes law caps annual property tax hikes at 3% for primary residences, shielding residents. However:
– Vacation homes and businesses face uncapped rates, often paying more.
– Critics argue this could deter investment or lead to higher consumer prices.
Tourism & Real Estate’s Role
With 137+ million visitors in 2023, Florida’s vacation home market thrives—especially in Miami, Orlando, and Naples. These properties generate tax revenue without straining local services (e.g., schools). Similarly, business-friendly policies fuel commercial real estate growth.
Opposing Perspectives
Some experts warn against oversimplification:
– Regional disparities: Urban areas (e.g., Tampa) rely more on non-homestead taxes than rural counties.
– Rising home values: Even with caps, homesteaded bills climb amid Florida’s housing boom.
– Indirect costs: Businesses may offset taxes via higher rents or prices.
Verdict: Mostly Accurate, But Not Perfect
DeSantis is largely correct—non-resident and commercial properties fund most Florida property taxes. However, residents still face rising costs, and long-term sustainability questions linger.
As Florida grows, policymakers may need to revisit tax fairness. For now, DeSantis’ stance highlights how tourism and business subsidies ease burdens on homeowners.
Stay updated with NextMinuteNews for more Florida policy insights.
