A Bold Move Toward Tax Reform In his latest State of the State address, Florida Governor Ron DeSantis made a strong push for eliminating the state’s unique business rent tax on commercial leases and reaffirmed his commitment to easing property tax burdens for homeowners. These proposals align with his broader agenda of making Florida a more business-friendly and homeowner-supportive state.

Ending the Business Rent Tax Once and for All Florida remains the only state in the nation that imposes a tax on commercial leases, a policy that has long been criticized by business leaders. While DeSantis has supported previous reductions to the tax, he now wants to eliminate it entirely. His budget proposal, released earlier this month, suggested halving the tax from 2% to 1% next year and fully repealing it by 2027.

“Florida remains the only state in America to tax business rent,” DeSantis said during his speech. “And while we have reduced the tax, it is time to eliminate it altogether.”

Repealing the business rent tax would cost the state approximately $1.6 billion in revenue, accounting for about 1.3% of Florida’s total budget. However, DeSantis argues that the economic benefits of removing this financial burden on businesses would outweigh the loss of revenue, positioning Florida as an even more attractive destination for commerce and investment.

A New Push for Property Tax Relief Beyond business tax reform, DeSantis has also pledged to explore new ways to reduce property tax burdens for Florida homeowners. While he has not called for the complete repeal of local property taxes, as he previously suggested on social media, he is encouraging lawmakers to draft a constitutional amendment that could provide significant property tax relief.

This initiative has already gained legislative traction. Following DeSantis’ social media comments, Sen. Jonathan Martin, R-Fort Myers, introduced Senate Bill 852 (S.B. 852), which directs the Office of Economic and Demographic Research to study the feasibility of eliminating property taxes. The study will evaluate alternative revenue sources, such as increased consumption taxes or budget adjustments, to compensate for lost property tax revenue.

During his speech, DeSantis underscored the frustrations of homeowners who, despite paying off their mortgages, are still required to pay property taxes annually.

“Is the property yours, or are you just renting it from the government?” DeSantis asked, highlighting the long-standing concern over perpetual property tax obligations.

The Legislature will use the findings from this study to craft a proposed constitutional amendment, which could appear on the 2026 ballot, offering Floridians the opportunity to vote on long-term property tax reform.

Debate Over Property Tax Reform While many lawmakers support exploring property tax relief, concerns remain over its potential impact on essential local services. House Minority Leader Fentrice Driskell, D-Tampa, warned that reducing property tax revenue could severely impact funding for schools, law enforcement, firefighters, and other critical community services.

“He wants the headlines and attention, but he doesn’t mention that property tax dollars fund our local public schools, police, firefighters, sanitation workers, and all the other things our local governments do every day,” Driskell said in a prerecorded response to DeSantis’ address.

Meanwhile, Senate President Ben Albritton, R-Wauchula, expressed a willingness to consider property tax relief but did not commit to specific proposals. “We’ll explore options for Floridians to vote to lower their own property taxes,” he said.

Potential Changes to the Homestead Exemption One area where changes may occur is Florida’s homestead exemption, which provides tax relief to homeowners by exempting a portion of a property’s value from taxation. Speaking to reporters after his address, DeSantis suggested that the current homestead exemption levels might not be sufficient and could be increased.

Currently, Florida’s homestead exemption includes a $25,000 exemption applicable to all property taxes and an additional exemption on assessed values between $50,000 and $75,000 for nonschool taxes. Increasing this exemption could provide homeowners with immediate tax relief while keeping local property tax structures intact.

What’s Next? The Florida Legislature now faces the task of analyzing the potential fiscal impacts of these tax reforms and crafting proposals that balance economic growth with funding needs for essential public services. If successful, these measures could further cement Florida’s reputation as a low-tax, pro-business state while giving homeowners greater financial relief.

With the business rent tax repeal slated for 2027 and the possibility of a major property tax amendment appearing on the 2026 ballot, Floridians will have the opportunity to shape the future of the state’s tax policies in the coming years. The debate over these changes is likely to intensify as lawmakers work through the details and the financial implications of shifting away from these traditional revenue sources.

Conclusion Governor DeSantis’ call to eliminate the business rent tax and explore property tax relief represents a bold step toward reshaping Florida’s tax landscape. While these proposals have strong support among business groups and property owners, questions remain about how local governments will adjust to potential revenue losses. As the debate unfolds, Floridians can expect a heated discussion on the trade-offs between tax cuts and maintaining critical public services.

© 2025 Jeanette Moffa. All Rights Reserved.