Governor announces special session to put phased homestead tax exemption on November ballot

The Governor said he will issue a proclamation calling a special legislative session next week to put a phased homestead property-tax exemption on the November ballot. "I'm going to be momentarily issuing a proclamation for a special legislative session beginning on Monday of next week" to allow voters to decide, he said.

The proposal the Governor described would immediately raise the homestead exemption limit to $250,000 and direct the legislature to adopt a schedule that could eventually raise the limit to $500,000. The Governor said the initial $250,000 threshold would make roughly 60% of Florida homesteaders tax-free and that a $500,000 limit would reach about 92%.

He framed the measure as narrowly focused on homestead residential properties rather than commercial properties or non-homestead residences, saying that approach is both more politically viable and better targeted to homeowners on fixed incomes and younger buyers trying to achieve homeownership. "If you raise to 500,000 limit, that's 92% of all Florida residents would be tax-free," he said.

The Governor repeated figures to explain the scale of the fiscal issue, noting that statewide property-tax receipts rose from about $32 billion in 2019 to roughly $60 billion in recent years. He said the proposed constitutional change would limit the remaining property-tax base to core services such as schools, police and fire so local governments retain funding for essential functions.

To cushion local revenue losses, the administration would create a state trust fund to provide grants to local governments; the Governor said the fund would be used to support rural counties and education and that implementation would be set in an "implementing session" after the election. He also said the government will publish the ballot summary language and a website where homeowners can enter an address to estimate savings under the new thresholds.

The Governor defended phased implementation and eligibility controls to prevent opportunistic migration, saying the legislature could require new residents to pay under the old system for up to five years before becoming eligible for the exemption. He described the plan as a "bottom-up approach" intended to deliver immediate relief to the largest number of homeowners while allowing a managed transition for local services.

The Governor also highlighted a protection aimed at small businesses: the proposal would cut the annual valuation increase allowance for small-business property from 10% to 5%, which he called "the strongest protection for small businesses" in Florida.

The Governor said the administration believes the mix of a phased exemption, a state trust for grants and limits on the remaining property-tax base will make the ballot measure feasible for legislators and voters. He encouraged residents to contact their local lawmakers ahead of the special session.