Proposed Florida Property Tax Changes Could Increase Costs for Renters

State economists estimate that the proposal could reduce local government revenue by nearly $12 billion annually. Counties and municipalities use property taxes to finance fire protection, law enforcement, parks, infrastructure, jails and voter-approved public bonds. If they collect substantially less from homesteaded properties, they may try to recover part of the difference from apartments, businesses, mobile home parks and other non-homestead properties.

The proposal would lower the annual cap on assessment increases for non-homestead properties from 10% to 5%. However, local governments could still raise their tax rates. Higher tax bills on rental properties could then be passed to tenants through increased rents.

The concern is significant because more than half of Tampa Bay renters already spend at least 30% of their income on housing. The proposal also includes a residency rule that could require people purchasing homes after January 1, 2027, to wait five years before receiving the full tax benefits. For more information, click here.