He is notā¦heās proposing to limit them, and only on homesteaded homes (so only primary residences, where working-class people actually live). Even on these homesteaded houses, itās limited (in its final phase) to a cap of $500,000 of a homeās value. Many, if not most, homesāespecially in South Floridaāare above this $500,000 tax exemption threshold (try to find a home in Jupiter for less than $500k). So property tax revenue remains, but only on homesteaded homes valued above $500,000.
This tax reduction plan helps lower-income homeowners the most dramatically. It is an awesome plan. Commercial properties (businesses) and non-primary homes (second homes, rental properties) are not affected at all. These rates stay the same and account for over 70% of all collected property tax revenue. We are only reducing taxes on a subset of the remaining 30%, and only on the first $500,000 in property value.
If a home bought 10 years ago for $300,000 just sold for $850,000 (common in todayās Jupiter), the homeowner is still taxed on $350,000 of valueāstill expensive, but enough savings to help with now much higher mortgage costs.
This plan is genius. The rich still get taxed heavily on their million-dollar homes (homesteaded or not), as do businesses and part-time residents. Only lower-value primary residences see the most, if not all, of the relief.
It is the definition of a progressive tax plan, yet progressives canāt grasp its simplicity.
How is any of this not positive? It forces municipalities to follow a budget and live within a still-generous revenue pot, while directly helping the people who need it most.
Businesses and non-homesteaded properties remain taxed at current skyrocketed values, so the tax base is still greater than it was 10 years ago.
This plan is beautiful in its simplicity: it helps residents who need it most while signaling that skyrocketing values donāt justify skyrocketing budgets.