On May 26, Governor DeSantis released his property tax reform plan and signed a proclamation for a sixth Legislative Special Session. While the text of the Governor’s planned Constitutional Amendment has not yet been released, the details outlined in his press conference today include the following:

• A $250,000 ad valorem property tax exemption for homestead properties. It appears this would apply to the first $250,000 in value of a home, making homes valued less than $250,000 fully exempt from all property taxes. It would include county, city, school, and special district ad valorem taxes.

• Governor DeSantis suggested the proposal would grow to a $500,000 homestead exemption over time.

• The new homestead exemption would require new Florida residents or first-time homebuyers to claim the lower homestead exemption for five years before receiving the new benefit.

• The Constitutional proposal would earmark nonhomestead property tax receipts for “core” local government services, such as police and firefighters.

• In addition to the additional homestead exemption, the Governor called for a reduction of the current cap on annual increases for nonhomestead properties from 10% to 5%. This applies to commercial, apartments, second homes, etc.

• There will be one Amendment on the ballot.

More details to come as the Governor and Legislature release them. 

2026 Tax Package

The agreed annual tax package has been released and the text is available here. The Legislature is expected to vote on this bill and the other budget bills this Friday, May 29.    

Some of the key provisions in the legislation include:

• Creating a homestead property tax benefit for qualifying mobile home parks that are primarily comprised of long-term residential leases.

• Revising the sales tax exemption for public works construction projects done by Universities and Colleges.

• Moving the now-annual Back-to-School sales tax holiday to July 20 – August 20 of each year.

• Exempting the sale of propane tanks weighing twenty pounds or less from the sales tax.

• Providing a temporary sales tax holiday for certain hunting, fishing, and camping items from September through December 2026.

• Reducing slot machine and cardroom taxes.

• Clarifying when the Department of Revenue must pay interest on refund claims.

• Creating a property tax exemption for qualifying fruit and vegetable packinghouses.

• Prohibiting real estate listing platforms from including certain historic property taxes associated with the property for sale and instead directing prospective purchasers to a property tax estimation calculation.

This bill does not contain any annual Corporate Income Tax conformity / piggyback changes as that legislation was passed during the Regular Session. Recall, that bill would fully decouple Florida from all the relief provided by Trump and Congress in the One Big Beautiful Bill. We are still awaiting the Legislature to present HB 7031 (from Regular Session) to the Governor for consideration.