Breakthrough Tax Relief or Risky Gamble?

The Political Angle

While the proposed tax exemption could increase homeowners’ disposable income, it may also create budget challenges for cities and counties along the Emerald Coast that rely heavily on property tax revenue. If approved by voters, the change would also permanently amend the Florida Constitution.

Homeowners will still be responsible for paying school district taxes. Starting in 2027, cities, counties, and special districts would start on an increasing scale that would eliminate property taxes over the next ten years, no longer collecting those taxes on primary residences.

Boyles described the current version of HJR 203 as an opening salvo rather than a finished product.

“I don’t believe that this HJR is in any way perfect, and I don’t think it is something that will ultimately end up on a ballot for the citizens to vote on,” he said. “But I do think it sets the context for further discussions and negotiations.”

He also noted that lawmakers are still waiting on a more detailed roadmap from DeSantis.

“It’s important to remember the governor has yet to provide a proposal,” Boyles said. “In the absence of that proposal, which we’ve now been waiting on for a while, it’s reasonable for members of the House to put some ideas out there to begin that creative conversation and those deliberations.”

Niceville City Manager David Deitch says that the shift would have an immediate local impact.

“We lose $4.4 million worth of revenue… that’s roughly 20% of my general fund, but it’s 51% of my property tax revenue.”

“Ultimately, it disappears entirely.”

 At the same time, the amendment would prohibit local governments from reducing total funding for law enforcement, firefighters, and other first responders below current budgeted levels. Deitch said that requirement would further limit where cities could make adjustments.

“I have to circle the wagons around fire and police, Deitch explained, “the amendment says I cannot reduce their budgets. They’re almost 50% of my general fund.” Ultimately, he says, he would have to cut services or impose fees for services like police and fire. Meaning taxpayers could live in a world where they pay for the police or a fire truck to show up at their homes during an emergency. 

Because the proposal would permanently amend the Florida Constitution, a  60% voter approval is required for it to pass. That is a huge talking point for politicians for or against the amendment. The property tax debate has historically been an upfront issue in Florida politics. Emotional responses from homeowners looking to save more money now may swing votes in favor of the amendment and whichever politician is backing the proposal. 

Are we “Robbing Peter to Pay Paul?”

If approved, the amendment would lower property tax bills for many homeowners. At the same time, it would reduce a key funding source for cities and counties, potentially placing pressure on services not protected under the measure, such as libraries, infrastructure, and community programs.

Boyles said the issue can’t be viewed solely through the lens of one county’s tax rate.

“This is a complex issue, but it’s one that you have to be able to view at a statewide level,” he said. “When I was a county commissioner, I didn’t have the responsibility to worry about the rate at which property owners in Leon County or Miami-Dade County were being taxed and how that impacted our economy. Now, as a state representative, I do have that responsibility, and that lens shifts a little bit.”

Deitch outlined what those pressures could mean in real terms.

“If I were to completely shut down the Senior Center, the library, the community center, not maintain any of the parks,” he said, “I can close that $4.4 million deficit.” The closure of those services, he warned, would reduce the quality of life for residents, young and old. 

What Happens Next

Voting on this constitutional amendment is expected to occur during the 2026 general election on November 3, 2026. This is where Florida voters will get to decide whether to approve it. This decision ultimately rests with Florida voters, who need to weigh potential tax savings for homeowners against the long-term impact on how cities and counties fund public services.

Boyles said his goal is to help those in high-tax areas without gutting well-run local governments elsewhere in the state.

“For me, it’s about how do I participate in the process in a way that can help bring relief to those folks in those higher-tax jurisdictions where I think relief is warranted, while protecting the ability for good local governments like Okaloosa County government to have enough revenue to operate and provide critical services to our citizens,” he said.

For Deitch, the debate isn’t theoretical.

“Every single day I see hundreds of seniors go into the library,… enriching their quality of life. Every single day at 2:30, hundreds of kids go into the library. Boof, gone. Where do you put them?”

“If we don’t give our kids something to do, they will find something to do,” he warned,  “We can either invest in our kids on the front end, or we can invest in our kids on the back end.”

“There are real-world consequences.”

Of Florida’s 411 municipalities, 267 are home to roughly half of the state’s population. These residents would see the sharpest decrease in both taxes and services from cities if this theory becomes a reality. County residents, who don’t pay city taxes, could also see a decline in services, as counties derive some revenue from property taxes as well.