2025 Legislative Session Begins & Eliminating Property Taxes in Florida

March 6, 2025 — This Week's News from Central Florida

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Lawmakers Begin Annual Legislative Session Amid Key Policy Debates

Jay Waagmeester/Florida Phoenix

As Florida’s 2025 annual legislative session kicked off on Tuesday, affordability concerns took center stage as Republican legislative leaders are expected to exercise more independence from the governor’s office. Pressing issues like property taxes, home insurance costs, and condo reforms will be a major focus for Governor Ron DeSantis and lawmakers as they aim to ease financial burdens on Floridians. Gov. DeSantis set the session’s tone with his State of the State address, highlighting recent immigration laws, the state’s economic growth and his conservative policy achievements. Conscious of his legacy, DeSantis’ 2025 agenda includes a push to eliminate property taxes, roll back gun restrictions, and restructure the citizens’ ballot initiative process, after alleging petition fraud following the recent marijuana and abortion rights ballot measures. In speeches addressing the joint session of lawmakers, House Speaker Daniel Perez (R-Miami) eschewed personal priorities by urging legislators to "break the status quo" and embrace change, while Senate President Ben Albritton (R-Wauchula) emphasized government efficiency and investment in rural communities. President Albritton, a 4th generation farmer, seeks to prioritize support for the citrus industry amid steep production declines and expand education, health care and infrastructure in undeveloped parts of Florida. The legislative proposal, which is being carried by Senator Cory Simon (R-Tallahassee) and allocates $197.4 million, aims to enhance rural economic development and spur growth in the largely agricultural regions of the state. Complementing the cost-cutting federal DOGE initiative, Albritton touted efforts that will be made to bolster government efficiencies, reduce bureaucratic processes, modernize IT, and improve cybersecurity during the 60-day session. Meanwhile, despite refusal to outline personal legislative priorities, Speaker Perez did announce the House would hold insurance companies accountable by investigating companies that have been accused of transferring billions in profits to out-of-state affiliates while hiking premiums and pleading financial distress. This follows reports by the Tampa Bay Times/Miami Herald (see story below) of insurance providers misleading officials by distributing billions to affiliate companies that may have violated state regulations and contributed to the state’s insurance crisis. Perez confirmed that the House Insurance & Banking Subcommittee will investigate, and members will be allowed to issue subpoenas, interview witnesses, and hire experts. Additionally, lawmakers are expected to fast-track legislation related to autism support, veterans’ programs, and mental health reforms, including the “Tristin Murphy Act” for treatment diversion. Fiscal responsibility and curtailed government spending will be emphasized by Republican legislative leaders and DeSantis ahead of anticipated budgetary shortfalls as federal COVID relief dollars dry up. In celebrating low state debt and tax-friendly policies, the governor’s office is recommending $2.2 billion in tax relief for families, including an elimination of the business rent tax and more tax holidays, such as a new “Second Amendment Summer” on guns and ammunition.

Florida’s Effort to Eliminate Property Taxes

The Florida State Legislature is making a serious push to eliminate property taxes in the state, a move that could make it the first in the nation to do so. Governor Ron DeSantis has thrown his support for the bold proposal, describing property taxes as “oppressive and ineffective,” stating, “You’re basically paying rent to the government to live on your own property.” The idea, which has sparked both enthusiasm and criticism, raises significant questions about how local governments would replace the lost revenue. Several bills introduced by lawmakers in Tallahassee take aim at property taxes, including SB 852 by Senator Jonathan Martin (R-Fort Myers), which requires a study be conducted to evaluate the elimination of Florida’s property taxes and explore alternatives such as sales-based consumption taxes. A report on the study’s findings would be required by October 1, 2025, and include an analysis of its potential impact on public services, economic stability, the housing market, and whether a consumption tax substitute would appeal more to businesses. Property taxes are the primary revenue stream for local governments to fund essential services, including public safety like local fire and police departments, schools, infrastructure, and parks. A separate bill–HJR 357–introduced by Representative Ryan Chamberlin (R-Ocala) would raise the homestead exemption to $100,000 of a property’s value from ad valorem taxes. Rep. Chamberlin stated the legislation intends to bring some relief to the state’s affordable housing crisis and eventually phase out a complete property tax elimination. Another bill by Senator Blaise Ingolia (R-Spring Hill) proposes a homestead exemption increase from $50,000 to $75,000 a year on assessed value for all levies. Experts estimate the state would need to recover $43 billion in lost revenue with a full repeal of ad valorem taxes, potentially through budget cuts or doubling the sales tax hike from 6% to 12%. A steep consumption tax increase would disproportionately affect low-income families and create financial instability, especially during recessions as consumer spending fluctuates based on economic conditions. With an average effective property tax rate of 0.79%, Florida ranks near the national average, according to WalletHub. This means a homeowner with a median-valued Florida home (tax valuation of $325,000) pays approximately $2,555 annually in property taxes, which is also a mid-range amount compared to other states. Any elimination of property taxes or increase in the homestead exemption would have to be placed on the ballot as a constitutional amendment, requiring at least 60% approval by Florida voters.

Eliminating Property Taxes Raises Alarms for Local Governments, Public Services

A recent analysis by the Florida Policy Institute (FPI) warns that eliminating property taxes in Florida is “a risky proposition,” warning that it could severely impact local governments and public services. With property taxes generating roughly $43 billion annually, replacing that revenue would pose a significant challenge. According to the FPI study, property taxes account for 73% of school district revenue, 18% of county revenue, and 17% of municipal revenue. Beyond public education, property taxes fund crucial municipal services such as infrastructure maintenance and improvement, emergency response for fire and police departements, public transit, libraries, recreational facilities, and parks. An elimination of this revenue source could lead to drastic cuts in valued public services without substantial increases in other taxes or fees. The report suggests that doubling the state's 6% sales tax to 12% might be necessary to compensate for the loss, potentially giving Florida the highest sales tax rate in the nation. However, experts caution that sales taxes are more volatile and regressive than property taxes, potentially exacerbating economic inequalities. Despite Governor Ron DeSantis' recent support for eliminating property taxes, calling them "oppressive and ineffective," he indicated he would veto any sales tax hike, leaving questions about how governments would fund essential services. The FPI warns that zero property taxes move could strip local governments of fiscal independence and lead to drastic cuts in public services during economic downturns as ad valorem taxes provide stability. In Florida, property taxes have risen 9.5% per year for the median homeowner since 2019, with home prices increasing 14.6% annually, according to real estate analytics company CoreLogic. With Florida already boasting one of the lowest overall effective tax burdens in the nation, the proposed elimination of property taxes would undoubtedly have far-reaching consequences.

Gov. DeSantis Launches Florida Version of DOGE, Plans Government Cuts and University Audits

Gov. Ron DeSantis has recently unveiled a Florida version of the Department of Government Efficiency (DOGE), aiming to cut waste and streamline operations across state agencies, universities, and local governments. DeSantis’ executive order establishing the task force went into effect immediately, and will report to the governor, CFO, the Florida Senate president, and the speaker of the state House. The initiative, modeled after federal efforts under Elon Musk and the Trump administration, seeks to eliminate 70 state boards and commissions, cut 900 positions, and conduct independent university audits. The Florida DOGE task force will review university operations, including spending, staffing, and course offerings, to ensure alignment with workforce needs. Florida Education Commissioner Manny Diaz Jr. and State Board of Administration Executive Director Chris Spencer endorsed the plan, highlighting its potential to reshape state governance. In announcing the new DOGE task force, Gov. DeSantis highlighted that the goals will be to eliminate “waste, fraud, and abuse,” save taxpayers money, and deliver accountability. He said artificial intelligence will play a key role in identifying unnecessary expenditures. Drawing inspiration from the federal DOGE efforts, DeSantis criticized federal spending practices and diversity initiatives, arguing that Florida’s streamlined approach should serve as a national model. DeSantis assured Floridians that these measures would strengthen the state’s economy and educational system. The task force will operate for one year, with each state agency responsible for creating a DOGE group to “identify and eliminate unnecessary spending, programs, or contracts.” Internal agency findings will be reported to DOGE officials in the governor’s office each month, with recommended legislative reforms to be submitted by September 30, 2025.

Florida already has an existing Government Efficiency Task Force that Florida voters approved in a 2006 constitutional amendment. The task force has met every four years as required by law to propose recommendations that are focused on improving governmental operations and reducing costs. It shares a similar mission of DeSantis’ newly-proposed state DOGE initiative of driving innovation, identifying efficiencies, and delivering accountability across government agencies. Florida’s Government Efficiency Task Force has had success recommending reforms that have been incorporated in legislation since its creation. In the task force’s 2024-2025 final recommendations report, the group focused on increasing the effectiveness and improving processes for the development of long range program plans (LRPPs), which are required by each state agency and outline strategic goals and objectives over five years.

Insurers Funneled Cash to Investors Amid Loss Claims, Study Reveals

A newly obtained study from 2022 exposes how Florida’s property insurance companies siphoned billions to their parent companies, affiliates, and investors while claiming financial ruin after Hurricanes Irma and Michael. The report, which was not made public or shared with lawmakers, shows that while insurers hiked rates citing losses and declared insolvencies, their parent firms raked in massive profits. Between 2017 and 2019, insurers reported a net loss of $432 million, but affiliates earned $1.8 billion. Executives distributed $680 million in dividends to shareholders while diverting billions more to related companies, often breaching state rules. This left some insurers fragile, leaving them unable to pay claims and worsening Florida’s insurance crisis. The report was obtained by the Times/Herald after a two-year records battle, and found that many insurance companies violated regulations by excessively diverting funds away. The maneuvering came at the start of the state’s property insurance crisis–at the same time Gov. DeSantis and the former insurance commissioner introduced legal reforms to make it more difficult to sue insurers. Officials now propose tighter oversight and reforms to define “fair and reasonable” fees insurers pay to affiliates, aiming to curb financial maneuvers that critics say exploit policyholders.

Tampa Bay’s $2.2B Hurricane Aid at Risk Amid Proposed HUD Cuts

The Trump administration's proposed cuts to the Department of Housing and Urban Development (HUD) have cast uncertainty over Tampa Bay's hurricane recovery efforts. The plan to reduce HUD's Office of Community Planning and Development workforce by 84% threatens to delay the distribution of $2.2 billion in federal relief earmarked for the region. The office oversees the disbursement of disaster funds vital for rebuilding public infrastructure and supporting affordable housing in storm-ravaged areas. Local officials express concern about the potential impact on rebuilding after Hurricanes Helene and Milton, especially as timeline requirements will need to be met. In Pinellas County, $800 million has been allocated by the federal government to restore infrastructure, invest in hurricane preparedness, and assist struggling businesses via loans and grants. Separate from disaster aid, local housing authority budgets also rely heavily on the Office of Community Planning and Development to administer housing assistance programs for families. has stated that disaster recovery remains a priority and will not be impacted by the agency’s sweeping layoffs that are proposed. Officials largely remain cautiously optimistic as they ask for transparency and increased communication between federal and local governments to safeguard the funds. Hillsborough and Pasco counties are set to receive $709.3 million and $585.7 million from HUD, respectively. The City of St. Petersburg is also anticipating $159.8 million in federal disaster relief funds. In Central Florida, $33.3 million is earmarked for Orange County and Volusia County has been notified of a $133.5 million allocation from HUD.

Lawmakers Push to Revitalize Rural Areas with $197M Bill

George Horsford/Daily Sun

Senate President Ben Albritton (R-Wauchula), a citrus grower from an agricultural area, is championing a plan to grow rural Florida, calling it the “fight for a rural renaissance.” The Senate unveiled a 129-page bill (SB 110) aimed at improving infrastructure, health care, education, roads, and economic development in 31 underserved counties that lag behind the state’s urban growth. Sponsored by Sen. Corey Simon (R-Tallahassee), the $197.4 million total spending package proposes rural healthcare initiatives to support hospitals with $25 million in grants to attract healthcare providers, plus an additional $25 million to fund mobile health units and telehealth services. It also offers $15,000 in student loan repayment to incentivize teachers to work in less populated school districts and provides financial assistance to aid school construction projects. Furthermore, the legislation allocates $50 million annually for road projects to include construction and resurfacing, and establishes an Office of Rural Prosperity to offer technical assistance to “fiscally constrained counties.” Another measure would provide $1 million block grants to the eight Florida counties facing population decline to reverse their current trends. Simon emphasized the plan’s goal to ensure rural communities thrive, stating, “We won’t leave our rural communities behind.”

Florida Sen. Jason Pizzo Signals Potential Run for Governor

Colin Hackley

State Senator and Democrat Minority Leader Jason Pizzo (D-Hollywood) indicated that he is strongly considering a run for governor, dismissing concerns over potential Republican challengers, including the declared Byron Donalds (R-Naples) and prospective Casey DeSantis. “I don't really give a s--- who the candidate is,” Pizzo said, emphasizing that none of the GOP contenders have addressed the state’s critical issues like rising property insurance costs. At a forum held in Fort Lauderdale last week, he distanced himself from traditional Democratic narratives and what he termed the "crazy left" of his party, particularly on the issue of antisemitism. He described himself as a fiscal conservative and urged Democrats to avoid reactionary responses to Republican rhetoric. The senator emphasized his intention to "call out the bull----" in the upcoming legislative session, which he suggested might be his last. Pizzo, who was reelected to a four-year Senate term in 2024, would need to resign to run for governor in 2026 under Florida's resign-to-run law. When asked about his next move, he quipped, “I think I might be the Democratic nominee for governor. Absolutely. Or go play golf.”

Environmental Group Sues EPA Over Controversial Radioactive Waste Used in Road Construction

The Center for Biological Diversity has filed a lawsuit against the Environmental Protection Agency (EPA), challenging the agency's December 2024 decision to approve the use of radioactive phosphogypsum in a road construction project at Mosaic's New Wales facility in Mulberry, Florida. Phosphogypsum, a carcinogenic-containing byproduct of phosphate mining, contains uranium and radium, which are linked to increased cancer risks and genetic damage. A petition filed with the 11th U.S. Circuit Court of Appeals seeks to overturn the EPA’s earlier decision permitting Mosaic Fertilizer, LLC to construct test roads using the material. Historically, the EPA has prohibited its use in road construction due to significant health risks. However, the agency’s approval now advances an industry-led initiative that could lead to broader nationwide use. In the legal challenge, the Center for Biological Diversity criticized the EPA's decision, stating, "The EPA is directly contradicting its own science and regulations by tripling the permitted cancer risk to the public and ignoring key radiation pathways." They also allege the federal agency disregarded its own expert consultant's findings, which identified numerous scenarios where public exposure, particularly among road construction workers, would exceed acceptable risk levels. Since 1989, phosphogypsum has been required to be stored in large "stacks" due to the potential health threats from radiation and other hazardous metals such as arsenic, lead, and chromium. Florida currently houses over 1 billion tons of radioactive phosphogypsum, with approximately 40 million tons added annually

Orlando Housing Inventory Highest Since 2010

Orlando's housing market is experiencing its highest inventory levels since 2010, according to recent data from the Orlando Regional Realtor Association. In January 2025, the area recorded 11,697 homes for sale, representing a 7-month supply. This marks a significant increase from previous years and indicates a more stable market. The increased inventory also offers more options for homebuyers and potentially more room for price negotiations. Despite a slight rise in interest rates to 6.8% in January, the median home price decreased to $375,000 from $380,000 in December.

High-Profile Attorney John Morgan Launches Political Party Amid Gubernatorial Speculation

Orlando Business Journal

John Morgan, prominent Florida attorney and Democratic mega-donor, announced last week that he is launching his own political party. This move comes amid speculation about his potential run for governor in 2026, which he has floated in previous election cycles. Morgan, known for his ubiquitous "For the People" advertisements and successful campaigns to legalize medical marijuana and raise the minimum wage in Florida, described his new party as being for those "stuck in the middle." He criticized the current two-party system as "broken due to Gerrymandering and divisive issues." The announcement follows Morgan's previous hints about running for governor as an independent or under a new "Capitalist Party" banner. In a post on X, Morgan stated his lawyer is “drafting the paperwork” to form a new political party and he’s open to name suggestions. With Florida's 2026 gubernatorial race wide open due to term limits, Morgan could face competition from Republican Rep. Byron Donalds, who recently announced his candidacy with President Trump's endorsement, and potentially Casey DeSantis, the current First Lady of Florida.

DeSantis Highlights Casey DeSantis in State of the State Address

Charlie Neibergall/AP Photo

Gov. Ron DeSantis used his State of the State speech to spotlight the work of First Lady Casey DeSantis, further fueling speculation about her potential run for governor. He praised her leadership on Hope Florida, an initiative aimed at connecting individuals with private, faith-based, and nonprofit services to reduce reliance on government aid. “Hope Florida was designed by our first lady... to transform the way government agencies provide services,” he said, noting it has helped nearly 30,000 Floridians achieve self-sufficiency. With term limits looming, DeSantis has increasingly hailed his wife as a partner in his governing agenda and who shares in the credit for Florida’s conservative accomplishments. The governor’s nod to Casey’s potential candidacy has intensified after Rep. Byron Donalds (R-Naples), endorsed by Trump, entered the 2026 race. “Anything that we’ve accomplished she’d be able to take to the next level,” DeSantis said recently, stoking speculation of a Trump proxy clash.

Florida’s January Revenue Misses Mark by $31M, Economists Say

Florida’s January revenue came in at $4.184 billion, falling $31.4 million short of predictions, per a report this week from state economists. The shortfall could impact budget planning for the upcoming fiscal year as lawmakers seek to balance tax relief proposals with potential revenue challenges in 2025-26 budget discussions. The Legislature’s research office flagged weaker-than-expected sales taxes, down $10.3 million, and corporate taxes, off by $18.8 million, hinting at sluggish spending and profits. Bright spots included $25.8 million in unexpected investment gains, partially offsetting the deficit. This general revenue pot supports schools, healthcare, and prisons, critical as the legislative session kicks off. Gov. Ron DeSantis in his State of the State speech boasted of low debt but sidestepped the shortfall. With hurricane recovery and a busy Capitol agenda, the revenue gap won’t impact state operations, but economists are wary of a possible trend developing.

Jacksonville Gives Final Approval for $100M Surf Park

The PARC Group

Jacksonville’s City Council has officially approved the rezoning for a new surf park named eTown, clearing the way for a state-of-the-art wave-generating lagoon and masterplanned community. The 18-0 vote last week paves the way for a 55-acre mixed-use development, anchored by a high-tech surf facility capable of producing up to 1,000 waves per hour. The project, led by Aventuur and PARC Group, will feature up to 3,500 residential units, retail, dining, and a surf academy. The surf lagoon area is estimated to cost between $50 million and $100 million alone, with construction set to begin in 2026. Completion is expected by late 2027.

Wesley Chapel’s Upscale Retail Hub with Potential Whole Foods Nears Approval

Plans for Wesley Chapel’s first likely Whole Foods Market have been resubmitted, marking progress toward a high-end retail development near Aronwood and Bruce B. Downs boulevards. Though tenant names remain undisclosed, earlier filings, briefly withdrawn, hinted at Whole Foods and a two-story Life Time fitness club. The latest design features a 35,518-square-foot grocery space, an 84,500-square-foot athletic facility with pools, and 30,034 square feet of additional retail and 886 parking spaces. If approved, the center could open by 2027, potentially satisfying local demand for an upscale grocery option in Wesley Chapel.

St. Petersburg's Boyd Hill Nature Preserve Undergoes $1M Restoration

A $1 million restoration project at Boyd Hill Nature Preserve is revitalizing wetlands, restoring natural water flow, and improving habitats. The initiative, a collaboration between St. Petersburg and the Southwest Florida Water Management District, spans 30 acres and aims to enhance water quality while removing invasive species. Approved in 2018, the project officially began this month. The Tampa Bay Estuary Program contributed $200,000, with the city and district splitting the remaining costs. A key feature includes a 4-foot-wide underground pipe connecting upstream waters, alongside a baffle box filtering pollutants from stormwater. Officials say the redesign mimics historical creek systems, slowing water movement to allow for natural filtration. Hurricane Milton tested the project, with no significant flooding in completed sections. Over the next year, contractors will monitor the growth of 7,000 native plants before the city assumes maintenance responsibilities.

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