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lorida's proposed elimination of property taxes has sparked debate among real estate experts. Governor Ron DeSantis' plan to eliminate property taxes would make Florida the only state with no income or property tax, living up to its "free state" moniker. However, experts warn that this move could have unintended consequences.

    "I don't see how this could hurt anyone who votes for it," said Phil Gutman, president of Continuum Company. "But we need to replace that money somehow." Budge Huskey, president and CEO of Premier Sotheby's International Realty, agreed that lower taxes are beneficial but must be done responsibly and based on real numbers.

    Lawmakers are considering changes to the state's housing structure, including a $500,000 homestead exemption and capping property assessment increases at 15%. DeSantis' proposal would result in average $1,000 rebate checks for homeowners. However, experts question how local governments will replace the lost revenue.

    Property taxes generate $55 billion annually, accounting for 18% of county revenues and 17% of municipal revenues. The Florida Policy Institute estimates that sales tax may need to rise from 6% to 12% to account for the potential property tax loss. Huskey argued that this would be a "pittance" compared to the revenue shift.

    DeSantis has proposed an "entry tax" for new residents to make up for lost revenue. Gutman and Huskey expressed mixed views on this proposal, with Gutman saying it's not a concern and Huskey arguing it would need to be "exorbitant" to offset migration costs.

    Experts also raised concerns that eliminating property taxes disproportionately favors the wealthy. Huskey called it a "regressive form of tax," while Gutman said it's a broad stroke that will benefit many Floridians. Both executives emphasized the importance of thoughtful, well-researched decision-making and urged lawmakers to examine alternative funding methods before making changes.