TALLAHASSEE, Fla. — State leaders are split on how to cut taxes for everyday Floridians, with the Governor pushing for the elimination of property taxes and the Florida House now pushing a reduction of the state’s sales tax.
The complete elimination of property taxes would save a Duval homeowner with a house valued at $400,000 more than $7,000 a year.
Meanwhile, the House’s plan to reduce the state sales tax from 6% to 5.25% would save consumers $75 for every $10,000 they spend.
Related: DeSantis softens call for end to property taxes, floats other options to lower assessments
Florida TaxWatch President Dominic Calabro explained while eliminating property taxes may save homeowners more money, it would represent a massive hit to local governments’ budgets.
“It’s about $55 billion. That’s a big chunk of what local governments provide to the core functions of government,” said Calabro.
Read: DCPS report: ‘High probability’ next year’s budget falls below state requirement
State Representative Anna Eskamani (D-Orlando) explained the sales tax reduction would also benefit all Floridians, rather than just homeowners.
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But with the state standing to lose $5 billion of annual revenue, she argued the devil is in the details.
“I’m always concerned about how this could impact social services and want to be very thoughtful to where such budget cuts are made,” said Eskamani.
State Representative Dean Black (R-Yulee) said he supports both options but noted the elimination of property taxes would have to be put on the ballot and approved by voters, while the sales tax cut could happen immediately.
“So, I want to support tax cuts for Floridians immediately, and then looking ahead to the future I’d love to make them bigger going forward,” said Black.
Calabro argued regardless of what option lawmakers ultimately land on, any attempt ease the burden on taxpayers is a worthy pursuit.
Read: ‘Salem Witch Trial’: Second Duval DOGE meeting sparks fiery comments from community members
“So, TaxWatch will be working with our legislature and also getting feedback from the people of Florida to make sure that whether it’s the sales tax or property tax or some combination of these things, Florida will continue to be in the best position and the beacon of light for the rest of the nation,” said Calabro.
We should have a better idea of what cuts lawmakers have in mind to pay for the sales tax proposal when the House’s initial budget proposal is released.
Sources tell Action News Jax that could be as soon as Friday.
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