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Editors Note: An analysis of our tax bill shows that if this passes real estate taxes may drop by just under 50% as school taxes will not be affected. Read through to see the possible impacts.
The Florida House has passed a proposal (HJR 203) to eliminate non-school property taxes for homesteaded properties, shifting from a proposed 10-year phase-out to a near-immediate repeal by January 1, 2027. If passed by voters, this amendment aims to eliminate most ad valorem taxes—excluding school levies—on primary residences.
Key Aspects of the Proposed 2027 Tax Plan
- Effective Date: The proposed changes are aimed to take effect on Jan. 1, 2027, if approved by 60% of voters in the November 2026 election.
- Scope: The elimination applies specifically to non-school, ad valorem taxes on homesteaded primary residences.
- Replacement of 10-Year Plan: The House amended earlier, slower 10-year phase-out proposals in favor of a rapid elimination to align with faster tax relief goals.
- Impact: Analysts estimate a $13-$18 billion annual loss in local government revenue, potentially affecting services and prompting concerns about new fees or tax shifts.
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Current Status
- House Action: Passed by the House (80-30) in February 2026.
- Senate Status: The Florida Senate has not yet advanced a similar measure, leaving the final outcome uncertain.
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If approved, the amendment would fundamentally restructure Florida’s local funding, moving away from a gradual reduction to a near-total removal of non-school property taxes for qualifying homeowners in 2027.
- Property Tax Impact: The school board approved a 6.095 mills rate for 2025–2026, slightly down from 6.131 in 2024–2025.
- Referendum Tax: The 1-mill local tax for schools (providing over $350 million from 2026-2030) helps maintain high teacher salaries and school security.
- Total Millage: For context, the total average millage rate in Sarasota County (including county, city, and school taxes) is 12.7168 (2024).
- Sales Tax: Beyond property taxes, a 1% sales surtax exists, of which 25% is allocated specifically to the School District.
The elimination of property taxes in
As of February 2026, the Florida House has passed this measure, though its final adoption remains uncertain as it awaits Senate approval and a potential voter referendum in November 2026.
Direct Financial Impact on Sarasota County
According to current projections and local budget data for the 2026 fiscal year:
- Revenue Loss: Eliminating non-school property taxes for homesteaded properties would cost Sarasota County approximately $163 million annually, representing about 9% of its total revenue.
- Total Abolition Scenario: If property taxes were eliminated for all properties (including commercial and non-homesteaded), the loss would skyrocket to $412 million, or roughly 23% of all county revenue.
- Budgetary Pressure: Sarasota County’s current 2026 budget is $2.52 billion, the largest in its history. The county is already facing a projected $7.1 million gap for 2027 due to rising capital and operational costs.
Potential Effects on County Services
The loss of property tax revenue—the county’s largest and most stable funding source—would likely necessitate significant changes:
- Service Reductions: Funding for essential local services such as fire rescue, road maintenance, parks, and libraries would face sharp cuts.
- Public Safety Protection: Current legislative proposals include a “law enforcement funding mandate,” which prohibits local governments from reducing police budgets. In Sarasota, where the Sheriff’s Office accounts for a significant portion of spending, this would force the entirety of any budget cuts onto non-protected departments like public works and general administration.
- Shift to Other Revenue Sources: To bridge the gap, the county might be forced to implement or increase other fees and taxes:
- Higher Sales Tax: Replacing the lost revenue statewide could require raising the sales tax to nearly 9%, potentially making it the highest in the nation.
- New Local Fees: The county could introduce new specific “service fees” for fire protection or garbage collection to replace general tax funding.
- Commercial Burden: Local governments may increase tax rates on commercial and rental properties, which could lead to higher rent for tenants and increased overhead for local businesses.
