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Florida Governor Ron DeSantis has given a big update this week on his save our homes from excessive property taxes plan and proposal. And stage one has a huge emphasis on homesteaded properties only.
Now, if you're unaware, here in Florida, you receive a $50,000 deduction off the assessed value of the home. Um and you can only really have that for your primary residence. And I'm not sure if you're all from out of state if that is higher or lower. Um but here for a long period of time now, I believe it's well over 20 years, um it has been $50,000. And as prices have gone up, as inflation's gone up, and um and the cost of living and everything, $50,000 doesn't really do much for a lot of people unless you've got a very low-valued home.
But as of uh yesterday, I believe it was, the plan and proposal is now to increase that five times and bring it up to 250,000, which would have a massive impact on the state and um and home ownership here in Florida. So, if you're if you haven't seen that, let's dive on into it and really see if this is something that's going to come to fruition or not. And of course, every Floridian that has a homesteaded property is going to welcome this with open arms. There'll be zero pushback from anybody, right?
Well, of course not. There's a lot of people with red flags and a lot of skepticism because people are saying, "What's going to happen to the schools? What's going to happen to the fire and police and infrastructure? Everything that makes this area a great place to live." Well, let's hear what Ron DeSantis had to say on this when questioned.
>> that benefits taxpayers, you're going to have people come out of the woodwork saying, "Oh, you're not going to have any more police. You're not going to have any more schools. You're not going to have any more of that." Now, obviously, that's not true. Um did Hillsborough County have police and fire in in 19 in 2018 when they were getting 850 million in property tax revenue? Yeah, they had all those things. What would that mean? Would they not be able to do it if they ended up with just 1.42 billion in 2028? Uh, still almost a 50 100% increase with somehow they Of course they would be able to do it. And yes, costs have gone up and but you're talking about almost doubling of the revenue in many of these situations. You know, Broward County's interesting. 1.1 billion property tax revenue in 2018. 2025, 1.8 billion. But they only had a 3% population increase on net uh over that intervening period. So, you know, you're having about a 70-80% budget property tax revenue increase going in for only 3%. And if left unabated, they're going to end up with 2.5 billion taken from taxpayers.
>> And what you missed him say here is apparently the trajectory of property taxes across the whole of the state now, including every single county, is so high that even if this bill passes now, that the revenue is going to be higher than what Florida was was receiving three to four years ago without this bill passing. So, there is obviously a lot of revenue coming in and it sounds like DeSantis is extremely confident that even if this bill passes, that it's not going to set us back too much and we're still going to be earning more than we were a few years ago.
And on schools, this is what he said.
>> Also, in terms of some people say, "Oh, you're not going to have schools." Well, the state of Florida in my tenure, we've taken on more of the burden for school districts than than before I was governor, increasing percentages. We've increased funding every year for them. You know, you have some of these school districts that have had a decline in student population, and yet they've had massive massive increases in the amount of money. And here's what frustrates me. We created in the state budget during my administration. So, Florida it it's very complicated how the education's done. But, we send a lot of money, school districts have money, and then they do. Uh we do a lot of it. Uh but we send the money down and then the school districts spend it. And I'm like, "Well, wait a minute. Why is that not going to teachers?" Cuz people talk about teachers. So, so we created a fund only could be used for teacher pay. That's the only thing it could be used for. And I think what happened was we sent it and a lot of school districts, fine, they used our money. First of all, they use it for leverage for other things with like the school unions, but they they would do. But, then they wouldn't do any additional on top. That's probably true for most of the school districts. But, what happened during that time you have like Broward, massive increase in the school district, big big decrease in student population. Where is the money go? It's going to bureaucracy. It's going to administrative. And my view is this like, we don't need more bureaucracy at administrative. You could really reduce that and do much better by the teachers. That that's for sure.
>> But, going back to the numbers in general, in 2019, Florida received 32 billion in property tax revenue. And now, it's 60 billion.
>> How much were people being taxed for property in 2019, like right before COVID, and then now? And it's 32 billion in 2019 and 60 billion dollars now. Now, you have had population growth and you have had inflation. But, even if you account for that, it would not lead to to 60 billion. So, so you've seen more revenue going in because of property tax than would be justified based on population growth and based on inflation, which you should count you account for. We account for it in the state budget, although I will say since 2019 till now, if you look at per capita inflation adjusted spending at the state level, we're actually less than we were in 2019. Nominally higher, in real dollars adjusted for population and inflation, we're lower and in fact, the budget that I have right now that I haven't gotten it yet, but I'm going to get it probably within the next week or two. You get the budget, I've got to act on it, but the budget that the legislature passed is by the time it says $300 $300 million more than we're spending current year, but I have line item veto, so I will veto more than 300. So, that when I sign in the final product, that'll be the fourth straight year where Florida has reduced its budget at the state level. And so, don't tell me this can't be done. We're doing it even while I'm doing the biggest environmental restoration in the history of the United States down in the Florida Everglades. Billions and billions of dollars we've done. It's been very successful and I have the Trump administration's been great. They're actually delegating us projects. They're giving us the money. We're doing it quicker. All the stuff is It's a good story. We've done billions and billions of dollars in additional money for infrastructure, for roads and all these other things that are so important and we're happy to do that.
>> Now, homesteaded property tax revenue equates to around 30% of all property tax revenue for the state of Florida across the board. So, it's not actually as much as you'd think when you consider apartments, second homes, investment homes, commercial realty, everything all bundled in. Homesteaded properties are just 30%. So, if you take off 30% off that 60 billion, it only puts the state back around 2 years to around 2024. So, it's really not that much of a setback as most people would assume.
Here is Ron DeSantis explaining an example of Hillsborough County, my old county, around the Tampa suburbs, and how it has really surged over the years and how the projections look for the next few years, as well.
>> Uh so, Hillsborough County in 2028, their property tax revenue would be 1.41 billion. Again, in 2018, they were getting 850 billion. That's with this plan passing and being enacted, they would go from 855 to 1.4 billion. Um so, that again, that's close to doubling uh in that 10-year period, that's where you would end up. We have had inflation, we've had population They've had 8% population growth. We've not doubled uh the cost of not doubled for for all this stuff over this period of time. The inflation is, you know, it's significant, but but there you go. So, so that's just that. Uh so, so that takes them back to spending levels from 2 years ago for property tax revenue. That's what that would do. So, anytime anyone tells you, "Oh my gosh, we can't not going to be able to fund anything. Good luck. They're going to disband the sheriff's department. We're going to have to disband police, all this stuff." Obviously, that's not true because they didn't disband it in 2024 when they were taking in a similar amount. So, the whole notion of this is um
>> So, according to the main man, the math is mathing, and the economy continues to boom here in Florida. We've gone from 1.1 trillion to 1.7 trillion over a 7-year period, I believe. And there is, of course, no shortage of people still moving to Florida, and I promise you, it's not to do with the weather, Disney World, or the beaches, or a large portion of that isn't to do with it. It's because of the quality of life here, and it is because of the politics here. I have to say it, and I hear it, because I've helped so many people move here over the years, and the one question we're always supposed to ask as realtors is what is bringing you here. We try to gauge people's motivation. We want to know why people are moving here. And of course, it's friends and family and stuff, but I get to hear the politics in other states. I've never lived in another state, so I cannot account for it first hand. I've never lived it. Um but, I know what some of the policies are like in Europe, and I know that a lot of states are are following that that European uh playbook. Uh so, um so, yes. Uh as more people move here, guys, there are more people contributing to that uh that economy, and that 70% of property tax revenue is still booming through second homes, investment homes, apartments, more construction being built, more commercial properties. That isn't going anywhere.
So, let's move on to the timeline of how things are shaping up if this goes through. Um this month, the House and Senate must each approve the constitutional amendment by 60% vote, and then if approved, it goes on the 2022 general election ballot. It then needs another 60% voter approval. The earliest effective date for relief is January 1st, 2027, but that's probably ambitious. But, it's going to be very interesting to see how this proposal plan uh movement really takes shape. It's got a lot of good vibes locally, but I have heard, of course, a few people just not quite believing it and trusting that a government would give back to its uh to its constituents.
So, what does this mean for non-Floridians right now? People that are looking to move here, say after 2027, or let's just say moving here right away. Well, it looks like going by the proposal, or at least the the snapshots that we're getting, is that the the proposal is for for Floridians only after 2027. And it looks like there's going to be like a 5-year or a several-year several years is the wording here, um that it would be um it would be barred for um you know, for out-of-state residents. So, it looks like there would be a hold on anybody moving to the state after it might be 3 or 4 or 5 years until you can get that full homestead exemption. So, maybe that gives you a nudge to move here sooner. Maybe if you're on the fence, it's another indicator to say, "Hmm, maybe I should get in here in 2026."
And um and yes, of course, well, you know, we we discussed that. Um that isn't, of course, for CDD fees. If you have a CDD fee, that isn't going to be affected whatsoever. Um if you look at my personal property tax bill, which you can see right here, um you can see that I've got a CDD fee, which is part of the non-ad valorem taxes, and that isn't going to go anywhere. So, if you've got a higher or a lower CDD fee, that isn't going to be touched. But, you can see that my my current assessed value for my home is 527,408. So, in my instance, um you know, there'll be another 200,000 to come off of that. So, it would go down to 327,408, uh because 50,000 is already in place. So, for my property tax bill, um it would be absolutely awesome. Um what's actually amazing is they've already You can tell they're serious about this is because they've already issued a calculator, an online calculator, where you can go by any address and it shows you exactly how much of a savings you will make each year. And for me, it's just under $3,000, which would be absolutely amazing. So, I'd love to hear your thoughts, whether you're local or looking to move here possibly in the future. What are your thoughts on that? Um like I said, I'd love it to pass. Don't get me wrong, of course I would. But would I be a little bit skeptical? Um yes, I would. And honestly, it's because I can see where our tax dollars go here. And you see plenty of signs around here saying your tax dollars go into work. If that's with new libraries, with new sports complexes, with schools, you name it. I mean, my own my own street was repaved um uh recently. The whole surface was redone. My whole neighborhood. Um and it's funny, you know, because uh when my parents come here, when my mom and stepdad come here, they are amazed by the little things that the county does that's part of our property taxes. It always makes me laugh when our trash gets collected, right? Um because our trash cans are huge. But in terms of like compared to like European standards, they're absolutely massive. And um and when I was taking the trash out when my my mom and my stepdad came over um not so long ago, um my stepdad said, "Wow." He said, "Like those trash cans are ginormous." He said, "What is that? Is that Is that once a month?" And I was like, "Nah, it's twice a week."
>> [laughter]
>> It's uh twice a week. And he couldn't believe it. Now, they have now changed that to once a week. But um but basically, they have a at the end of the month, they have a big bulk collection, which is still 10 times better than you get in Europe. In Europe, you get these tiny little bins where you have to segregate glass and plastic and general waste. And And honestly, if you have any big boxes from like Amazon or wherever, it will take it will be a nightmare to try and get rid of that. You've got to cut it all up and and or you've got to take it to the dump. So, from my point of view, I am I love I actually think what our county does is is awesome. But obviously, I don't want that to go downhill in any way. But yeah, it does make me laugh when I see people putting out, you know, bed frames and mattresses and any things like that that are huge, which most most other parts of the world you would have to go and take and discard at a dump or what have you. When the county comes and picks it up from your driveway, I find it incredible. And I send these things to my friends back in England and they genuinely cannot believe it.
Now lastly, Ron DeSantis, of course, is leaving office at the end of the year. So, is this his big his big kind of leaving message to to run for president in a couple of years? Maybe so. Maybe he's really trying to leave his mark. But personally, I think he's been a great governor. Like I you know, I'm um I you know, there's a lot of things I know there's a lot of people that don't like him for whatever reason, but I don't I feel like he doesn't back down from a a big you know, a big challenge. And we saw that during COVID with you know, with the rescues, with with the hurricanes. He's taking on Disney. I mean, even Trump wouldn't take on Disney. I mean, he's taken on battles that most politicians wouldn't do. And it always looks like he's trying to give back to Floridians. Now, you may strongly disagree. You may you know, if you may be well on the left and and have policies that he may not stand for and all the rest of it. Of course, it's a very Republican state. But I hear it firsthand like I said from a lot of people that people move here because the state is so well run. And and of course, we don't know who's coming in next. And honestly, I um I don't know who I'm who I want next. You know, I'm hearing mixed things from Jay Collins, from Byron Daniels, and from Fishback. Is it James Fishback? He seems a little bit extreme to me, James Fishback. Like I've seen him come out with some things where he wants to tax New Yorkers for coming here and stuff like that. Right, so I just think it's a bit overkill. You know, like a moving out-of-state tax or whatever he wants to call it, sin taxes for all sorts of things. And I just think that's a bit bit much. But maybe you love him, I don't know. But we'll see, you know, I personally love DeSantis to stay, but I think he's done a wonderful job. Will that change things because if it doesn't pass this year, it probably isn't going to until something happens years down the line. I cannot see any of these other guys coming in and pushing for it. But hey, let me know if you're a DeSantis lover or not. I'd like to hear people's political views. I don't want to get too political, but I like to hear both both sides of of a good debate. So So yeah, you know, reach out if you've got any questions. All of my contact information is below. I'll be back for some more content outside of politics and taxes very, very soon. But yeah, reach out. I'm here to help, here to kind of advise you on situations if you want CDDs or if you don't want a CDD and what will you know, where you'll get lower property taxes compared to some some counties over others and neighborhoods over others. It just depends on a few factors, but I appreciate the support. Please like this video and subscribe to the channel. You'll hear from me soon. Take care.
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