Officials in the Florida Keys remain curious what will come of discussion and debate among state legislators over potentially sending measures to the ballot to eliminate property tax next year.
Government representatives from Key Largo to Key West told state Rep. Jim Mooney and state Sen. Ana Maria Rodriguez during a virtual delegation meeting Nov. 13 that their fiscal stability is vital to deliver quality of life services. Lisa Tennyson, county legislative affairs director, said property taxes are Monroe County’s largest revenue source for operations.
“It’s still early and we don’t know where this issue is headed, but we aim to monitor the proposals produced,” said Tennyson. “Ultimately, this issue goes to the voters at large, but it will be important to shape them before they go to the ballot.”
State House members have submitted an array of property tax phaseout or elimination proposals for the 2026 session. One proposal would exempt homesteaded property from ad valorem taxation, while another would increase the homestead property exemption by $100,000 annually during a 10-year period.
There are also proposals to provide homestead property tax exemptions for those over the age of 65 or those who have property insurance.
All proposals safeguard property tax funding for school districts and law enforcement. But that’s not the case for the county, local municipalities and special taxing districts.
By Nov. 20, all seven House joint resolutions and one bill for property tax reform cleared the House Select Committee on Property Taxes. It sets the stage for these constitutional amendments to potentially appear on the 2026 general election ballot.
Committee leadership emphasized that ad valorem tax collections have increased 46% from 2020 to 2024 (from $37 billion to $55 billion), far outpacing population growth of 6.5% during the same period.
Eliminating property tax in the Sunshine State is something DeSantis has stated numerous times during various public appearances and talks on TV stations.
“I don’t see how government has the right to keep asking you to pony up infinitum to just pay rent to them to just live on the property you supposedly own,” he said during an appearance on June 24.
But cutting property tax revenue from local governments would especially hit special taxing bodies like the Florida Keys Mosquito Control District.
“Our district receives 95% of income from ad valorem,” said Andrea Leal, executive director for the mosquito district.
Islamorada and Key Colony Beach officials stressed the need for state legislators to continue property insurance reforms, including an annual rate cap increase of 10% for policyholders with Citizens.
“We talk about the cost of homeownership and the cost of rentals, that property insurance is what gets in the way,” said John Bartus, Key Colony Beach manager. “If you solve that, then property issues are minimized.”
Mooney has told the Keys Weekly that he doesn’t believe eliminating property tax is feasible. If any measure makes it to the ballot in 2026, Mooney said, legislators must clearly explain to the voters the positives and negative sides to such a move.
“If property taxes get eliminated down the line, I don’t know how governments are supposed to operate. I like the fact our parks look good and our roads are paved,” he said.
Mel Montagne, Fair Insurance Rates of Monroe president, is continuing to push for the 10% rate cap on Citizens, as well as eliminating a flood insurance requirement for homes in X zones or above base flood elevation.
“The flood insurance mandate is definitely a pet peeve of mine,” he said.
Local officials are also pushing Mooney, Rodriguez and other legislators to approve another round of Florida Key Stewardship Act funding for water quality projects, as well as an additional $2.5 million for land acquisition efforts.
Sheryl Schwab, Monroe County Domestic Abuse Shelter CEO, is hoping to secure state funding for a new facility in Marathon. Currently, the shelter has a 15-bed facility in Key West. The Florida Keys Children’s Shelter is hoping to gain some support for a transitional living program in the Upper Keys. Ben Kemmer, shelter CEO, said they’re hoping to have a home for those ages 18 to 22 who may be homeless, aging out of foster care or in other situations which limit self-sufficiency.
Mooney said the next budget cycle in Tallahassee could be even tougher than last legislative session.
“Be prepared for a tight budget,” he said.
