Proposal to remedy basic taxes in Florida, triggers concerns about financing and sales tax increase

Oviedo, Fla. – – Florida Gov. Ron Desantis The idea of ​​abolishing the property taxes throughout the Sunshine state said it explained that it would require a constitutional change.

“We use 100% of our basic taxes for public security”

What we know:

Governor Ron Desantis has proposed to eliminate the basic taxes in Florida, a step that would significantly influence the local governments. The property taxes are currently financing important services such as the police, fire brigades, public schools and infrastructure. Local civil servants warn that the removal of this source of income will put cities and counties at the expense.

What we don't know:

It remains unclear how the state would replace the lost income of 40 billion US dollars from land taxes. One possibility is a strong increase in sales tax that the experts should appreciate in order to compensate for the loss. There is also uncertainty as to whether the voters would support the necessary constitutional change to eliminate property taxes.

Big Picture View:

While the elimination of landowners could benefit the homeowners, financial analysts warn that they could disproportionately influence the Floridians with lower and medium -sized incomes. Sales taxes are paid by everyone, which means that the financial burden of property owners can shift to all consumers. The affordability crisis in Florida continues, with real estate prices rising by over 30% in five years, while wages have only increased by 10%.

What you say:

The mayor of Oviedo, Megan Sladek, emphasized the crucial role that the property taxes play in the city's daily function.

“We pay over 22 million US dollars to maintain our police and fire brigades, and these are all of our property taxes,” said Mayor Sladek. “We use 100% of our basic taxes for public security.”

The political analyst Esteban Santi's expressed concerns about potential increase in sales tax.

“If you are among the top 1%, it will be great, but if you are your everyday floridian, you won't see too many advantages from this guideline,” said Santis. “And if we double the sales tax, you will only increase the costs of the goods at the cash register.”

Desantis recognized the challenge of eliminating basic taxes and saying that

“We would have to make a constitutional change [ which requires 60% of voters to approve] to remove them [which I would support] Or even to reform/lower them, “remarked Desantis.

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