Dear Colleagues and Friends,

The 2025 Florida Legislative Session commenced on Tuesday, March 4, with over 1,800 pieces of legislation filed. During the 60-day session, many of these bills will be considered, potentially impacting your business or industry in various ways.

Each week, the Rotunda Report will provide a high-level summary of what occurred in Session during the prior week. A practicing attorney in the related industry will also provide a deeper analysis of a single piece of legislation in our Legislation Spotlight. In Week 3’s Legislation Spotlight, Stearns Weaver Miller attorneys Sabrina Robinson, Morgan McDonough, and Ivette Delgado provide an analysis of bills contemplating and enacting property tax reforms.

Week 3 Recap 

As previously covered in the Rotunda Report, due to a confluence of events during Committee Weeks, many bills that would have already been heard in their second committee, are just now being placed on their first Committee Agenda. However, one of Senate President Albritton’s main priorities, SB 110 filed by Senator Simon, was already voted by the full Senate and is in messages in the House. SB 110 seeks to address various issues for the benefit of rural communities throughout Florida by:

• Creating the Office of Rural Prosperity that will be responsible for administering the Renaissance Grant Program and the Public Infrastructure Smart Technology Grant Program. The Office will provide training and technical assistance to rural local governments, and help ensure rural counties obtain the support and guidance they need.
• Providing expanded healthcare access in rural communities through the implementation of additional programs and funding.
• Funding the Florida Department of Transportation and Florida Department of Education to provide targeted funding and programs to bolster infrastructure for agricultural facilities, and create incentives for teachers to live and work in rural areas of opportunity.  

Week 4 Preview

A few bills that were added to the agenda to be heard for the first time in Week 4 include:

• SB 1594 filed by Senator McClain, the companion bill to Representative Lopez’s HB 923, will be heard for the first time in the Community Affairs Committee on Tuesday, March 25 at 11:00 AM. SB 1594 provides clarifications and reforms to certain tax policy relating to affordable and workforce housing. An in-depth analysis can be found here: Florida House Bills 923 and 943: Comprehensive Housing Reform and Live Local Act Enhancements.
• SB 1742 filed by Senator Bradley provides for reforms to the governance and regulations of condominiums will be heard for the first time in Regulated Industries on Tuesday, March 25 at 4:00 PM. 

Legislation Spotlight: Elimination of Property Taxes 

SB 852

Sabrina Robinson, Morgan McDonough and Ivette Delgado

Governor Ron DeSantis recently announced support for a proposal to eliminate property taxes, aiming to alleviate the financial burden on homeowners amidst escalating property values. Though no proposal was filed to completely eliminate property taxes during the 2025 Session, many bills were filed related to the announcement. While this initiative could potentially reduce costs for property owners, it raises questions regarding the funding of public services traditionally funded through property taxes, such as law enforcement, schools, and fire departments.​

• Financial Implications: Property taxes currently generate approximately $43 billion annually in Florida, funding critical services such as schools, law enforcement, and infrastructure. Eliminating this revenue source would necessitate identifying alternative funding mechanisms to maintain these services. ​
• Alternative Funding Considerations: One option to compensate for the loss of property tax revenue is increasing the state sales tax. Estimates suggest that the sales tax rate would need to double from 6% to 12% to offset the deficit, potentially making it the highest in the nation.

During the 2025 Legislative Session and in response to Governor DeSantis’ announcement, lawmakers have proposed legislation exploring various measures, including studying the elimination of property taxes, increasing homestead exemptions, and freezing current property taxes for senior citizens.

• SB 852 filed by Senator Martin would require the Office of Economic and Demographic Research to study the impacts of eliminating property taxes in Florida. The study would evaluate:
• The potential impact of eliminating property taxes on public services, including education, infrastructure, and emergency services.
• Potential housing market fluctuations, including changes in homeownership rates and property values.
• Whether a shift to consumption-based taxes would make Florida more attractive to businesses compared to other states.
• The potential impact of eliminating property taxes on overall economic stability, consumer behavior, and long-term economic growth.
• SJR 1016 filed by Senator Ingoglia and HJR 357 filed by Representative Chamberlin propose constitutional amendments that would increase the current homestead exemption from $25,000 to either $75,000 (SJR 1016) or $100,000 (HJR 357).
• SJR 326 and SB 1178 filed by Senator Rodriguez and HJR 1025 and HB 1027 filed by Representative Borrero propose a constitutional amendment to the ballot that would give the legislature the authority to prohibit increases of assessed values for senior citizens meeting certain requirements. If the constitutional amendment passed, the enacting legislation would create a program allowing individuals over the age of 65 to apply for a property tax freeze if eligible based on meeting specific income requirements.
• SJR 1510 and SB 1512 filed by Senator Avila and HJR 1257 and HB 1259 filed by Representative Busatta propose an amendment to the State Constitution to authorize the Legislature to provide the same exemptions and assessment limitations granted to homestead property to certain real property subject to a single long-term lease. If the amendment passed, the enacting legislation would allow for an owner of homesteaded property to apply for an additional $25,000 ad valorem exemption on property, other than their personal residence, that is subject to a long-term lease.

Over the course of the 2025 Session, the discussion around property taxes and the relief that the state can provide to homeowners will continue. The proposal to eliminate ad valorem taxes in Florida aims to provide financial relief to homeowners; however, it creates substantial challenges in terms of replacing critical revenue streams essential to maintain public services. The debate continues as policymakers weigh the benefits against the potential risks and unintended consequences of such a significant fiscal shift.

Stearns Weaver Miller will continue to monitor all aspects of Florida ad valorem tax legislation, including the proposed bills, as the 2025 Florida Legislative Session continues.