The recent surge in property appraisals has resulted in significant tax increases for homeowners across Florida, with some facing the highest hikes they’ve ever experienced. For many, this means having to allocate hundreds more dollars each month to cover their property taxes.
Property taxes in Florida are determined based on the market value of real estate properties, and while these values are gradually starting to decrease after reaching an all-time high, the current trajectory is causing concern. Dominic Calabro, the President and CEO of Florida TaxWatch, a tax research institute, has voiced the view that the current tax system is becoming unsustainable.
Several factors, including impact fees, a growing population, and the highest inflation rate in the nation, are contributing to this financial stress. The cumulative effect may even force some individuals out of the property market altogether.
Calabro expressed his concern that Florida could become a place where the cost of living, including food and housing, becomes prohibitive for people with average and low incomes. He emphasized that while taxes are crucial for funding essential services, there’s a growing imbalance that is adversely affecting people, especially those with modest incomes.
Originally, the expectation was that people should not spend more than 30% of their income on rent. However, the current situation has pushed some individuals to allocate as much as 80% of their income to housing expenses.
Calabro stressed the importance of finding a balance in tax collection and urged homeowners to take advantage of homestead exemptions. Additionally, he encouraged individuals to become more engaged in local city and county politics to influence change in the tax system.
A proposed bill, HJR 469, aimed at lowering property taxes in Florida through a constitutional amendment scheduled for the 2024 ballot, was unsuccessful and died on the house floor in May.
