MARTIN COUNTY, Fla. — A proposed expansion of Florida's homestead exemption could lower tax bills for homeowners, but critics fear renters may end up paying the price if local governments raise rates to offset lost revenue.
WATCH BELOW: 'It shouldn't affect them whatsoever,' realtor Michael Caputo tells WPTV's Kate Hussey
A recent analysis from the Florida Policy Institute estimates Martin County alone could lose more than $67 million if the proposed homestead expansion passes. Statewide, that same study estimates local governments could lose nearly $4.8 billion if voters approve the amendment in November.
At Habitat for Humanity of Martin County, Executive Director Mike Readling says he's seeing an uptick in people seeking help with rent and bills, 95% of whom he says are renters.
"The housing situation is so dire," Readling said. "It's gotten progressively worse. We have families coming in everyday."
Readling says the proposed tax cut would do little for the people his organization serves.
"The demographic that we're working with and Habitat for Humanity tries to help — it's not going to help them at all," Readling said.
Attorney John Tolley says local governments facing a revenue shortfall could have few options: cut services, dip into reserves, or raise millage rates.
"That's a possibility if they find themselves in a position where they don't have as much money as they currently needed," Tolley said.
If millage rates rise, homesteaded homeowners would still benefit from the tax break, according to realtor Michael Caputo.
"It shouldn't affect them whatsoever," Caputo said.
However, Caputo said landlords — who don't receive that exemption — could face higher tax bills and potentially pass that cost on to renters, who aren't getting the tax break either.
"There could be an effect where we see some people getting priced out of these rentals, which are already pretty high?" asked investigative reporter Kate Hussey.
"Oh, yeah, sure, that could really, that could happen," Caputo said. "We're ground zero for where everybody wants to be."
A 2025 Florida Senate analysis found there are just 24 affordable and available rental units for every 100 extremely low-income renters.
"But also there could be some good out of this as well," said Tolley.
If passed, the amendment would also lower the property tax cap on non-homsteaded properties, including commercial apartment complexes, from 10% down to 5%.
"The fact that you could have less taxes, you actually might see a trend where rents go down even further than they were before," said Tolley.
Caputo added he believes there's a high probability local municipalities may not raise millage rates at all, and if landlords do face higher costs, said the market may stabilize anyway due to supply and demand.
"The landlords again are just going to have a flow through effect, you know, if they're paying more for their property, they're going to try and increase that on the tenant and give it a try," said Caputo. "If it doesn't happen for them, then they'll have to readjust their pricing, just like transients or tenants are transient, you know, costs are pretty movable as well."
Read more of WPTV's coverage below:
Real Estate News
Potential property tax cuts could lead to Palm Beach County budget cuts
WPTV Investigates
Will property tax cuts raise your other bills? What experts told WPTV
Real Estate News
Property tax proposal: What Florida voters are saying
Palm Beach County
Local leaders warn Florida property tax cut plan could gut city services
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