WEST PALM BEACH, Fla. — We've heard your concerns, and we've pressed lawmakers about the idea of eliminating property taxes in Florida.
WPTV reporter Matt Sczesny listened to local leaders about the questions they had about how to fund essential services if property taxes come to an end.
WATCH BELOW: Florida lawmaker proposes new revenue model to 'wipe out' property taxes
Next week, dozens of state representatives will sit down and meet to discuss the next steps regarding the proposal.
Eliminating property taxes and replacing the revenue is the challenge, but state Rep. Ryan Chamberlin, R-Belleview, told WPTV that he has a plan.
The first part of the plan, which he calls "Freedom 1,2,3", involves a rollback of property tax rates to numbers in 2023, putting revenue projections at $43 billion. Then he proposes a 5% transaction fee on real estate sales.
Chamberlin said he wants to wipe out property taxes, reel in expected revenue and replace the dollars with a combination of fees and sales taxes, starting with an upfront payment when buying a home.
"Right now, there currently is no sales tax when you buy a home; you just get billed the rest of your life," Chamberlin said. "I brought that to a 5% transaction fee, which could be incorporated into your amount financed; it equates to a much, much smaller amount."
Another 5% sales tax would be imposed on travel-related transactions such as hotels and rideshare trips. The final part of the plan is a three-cent sales tax to benefit school districts.
"The state is not going to spend it however they want; it is specific for schools and three cents will generate $20 billion," Chamberlin said.
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Chamberlin, who sits on a 37-member special committee on property taxes, said this is his plan only and does not involve Gov. Ron DeSantis or the committee co-chaired by state Rep. Toby Overdorf, R-Stuart.
"There are a tremendous (number) of ideas coming forward, everything from either a monetary straightforward homestead exemption to a percentage associated with it," Overdorf told WPTV earlier this month.
"I believe we can wipe out pretty much statewide property taxes with this plan if we come to a conclusion that we only want to deal with homestead exemption taxes," Chamberlin said.
Chamberlin said he expects some opposition to his plan, but it will be discussed among lawmakers when the special committee on property taxes meets Monday.
"I expect to be fully debated," Chamberlin said about his plan. "If somebody comes up with better ideas, bring them on."
Matt Sczesny is determined every day to help you find solutions in Florida's coverage collapse. If you have a question or comment on homeowners insurance, you can reach out to him any time.
