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Beyond the Buildings Property tax cuts could upend the Florida housing market
May 7, 2025
Chay Halbert, a principal in public policy at Cotality, discusses Florida's radical proposal to eliminate property taxes. He and Maiclaire Bolton Smith delve into its potential repercussions, revealing how it could drain funding for schools and public services. The conversation explores the looming affordability crisis, noting that affluent families might exacerbate inequality by gravitating toward better-funded schools. They also evaluate complex alternatives for lost revenue and the challenges this proposal poses for the housing market.
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Property Tax Cut Financial Impact
- Eliminating property taxes in Florida could reduce housing costs but causes major financial shifts elsewhere.
- Lost tax revenue won't disappear but will squeeze public services and compel other tax hikes.
Motivations Behind Florida's Proposal
- Florida considers eliminating property taxes chiefly to tackle housing affordability and attract residents.
- Political motives also drive the proposal as Florida seeks national prominence.
Revenue Loss From Property Tax Cuts
- Property taxes fund major state revenue, notably for schools, so cutting them risks fiscal crisis.
- Alternatives like sales tax hikes are limited and could destabilize the economy and social equity.