Florida proposal would look into rescinding all property taxes

TALLAHASSEE, Fla. – A Florida bill could set out to eliminate all property taxes, based on a study of the potential impacts of doing so by the Office of Policy Analysis and Government Accountability.

HB 1371 would require the Office of Policy Analysis and Government Accountability to study the potential impact of eliminating property taxes in Florida and replacing lost revenue through the establishment of a consumption tax.

The Ways and Means House Committee and Rep. Ryan Chamberlin, R-Ocala, sponsored the bill. A companion bill has yet to be filed in the Senate.

According to the bill summary analysis, the Florida Constitution says that only local governments can charge ad valorem, or property taxes, which are based on the value of properties like homes and businesses. The state can’t impose these taxes.

Ad valorem taxes are charged yearly by counties, cities, schools and certain other districts, based on the property’s value as of Jan. 1 each year.

There is a 6% sales and use tax on most things like goods, rentals and some services in Florida. State law outlines how this tax is collected and offers exemptions or credits for certain items or situations. Counties can also add extra surtaxes on top of the state’s sales tax if they choose to, according to the analysis.