Gutman Growth Advertising’s Phil Gutman, The Continuum Firm’s Ian Bruce Eichner and BH Group CEO Isaac Toledano clarify to Fox Information Digital why they assist Florida’s ‘Rental 3.0’ invoice.
On the floor, not paying property taxes could sound good. Nonetheless, actual property specialists within the Sunshine State appear to be at odds over the problem.
Gov. Ron DeSantis not too long ago doubled down on fully eliminating property taxes, a transfer that may crown Florida as the one U.S. area with no state earnings or property tax, and dwell as much as its “free state” moniker. Whereas many could view decrease taxes as a pretty play, there might be unintended penalties.
“I do not see how this might probably harm anyone that is going to vote to cross it, however once more, it is all going to come back down to precisely what will get affected, as a result of I do know that that cash does have to be changed in some way, someplace by somebody,” Continuum Firm President Phil Gutman instructed Fox Information Digital.
“I’m a local Floridian, and I consider that now we have created an atmosphere which is among the many greatest in your entire nation so far as the steadiness of business-friendly and way of life, and it’s crucial that we preserve that benefit that now we have,” Budge Huskey, president and CEO of Premier Sotheby’s Worldwide Realty, additionally instructed Fox Information Digital.
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“However on the similar time, it must be accountable, and it must be based mostly on actual numbers.”
Florida Gov. Ron DeSantis proposed fully eliminating property taxes in March 2025. (Getty Photographs)
Lawmakers are reportedly evaluating a lot of adjustments to the state’s housing construction, together with a $500,000 homestead exemption (most $1 million for seniors), capping property evaluation will increase at 15% and eliminating property taxes altogether.
“Property taxes successfully require householders to pay lease to the federal government,” DeSantis stated in the unique press launch. “Constitutional protections for Florida householders require approval of the voters in 2026. Within the meantime, Floridians want reduction. I’m at present proposing a plan that can lead to—on common—$1,000 rebate checks for every homestead as a reduction on their property taxes. If the Legislature acts on this plan now, we will get this carried out this yr.”
DeSantis’ workplace pitched the proposal in March, and has since vetoed a research on property taxes that evaluates how native governments use tax income and what occurs if they’re diminished. U.S. Home Rep. Greg Steube, R-Fla., stated he helps the veto on “Mornings with Maria,” Tuesday, as it will reveal “what we already know.”
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“It has been annoying me paying these property taxes since I purchased a house. So for me, clearly, it sounded nice and it sounds nice. I’ve adopted it carefully. I do know there’s nonetheless quite a lot of element left to what he is proposing,” Gutman reacted. “I’ve gotten quite a lot of calls, quite a lot of questions from shoppers, potential patrons, lots of people out of the Northeast and all around the nation, for that matter, asking my ideas on it and what the chance of one thing like that taking place. So for me, I very a lot welcome it. I feel it will be nice.”
“It is creating actually an ideal storm for us to be fully flooded with patrons,” he added. “Why would not you wish to transfer right here at that time?”
“I feel we’re the entire similar mindset that decrease taxes are higher so long as it is carried out with a strategy that’s wise, and it really permits for the investments which can be crucial to take care of the standard of life that can be such a key side of attracting future residents or retaining residents throughout the state,” Huskey agreed earlier than rebutting, “on the finish of the day, you can not merely decrease property taxes or get rid of property taxes with out changing at the least a major majority of that income by different means.”
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The Florida Coverage Institute reviews that property taxes generate $55 billion yearly and account for 18% of county revenues, 17% of municipal revenues and as much as 60% of public schooling funds. The group estimates that Florida’s gross sales tax could have to rise from 6% to 12% to account for the potential property tax loss.
“If you take a look at the quantity of income that’s collected in property taxes inside this state and the implications, if the mathematics is incorrect on any of this, particularly within the absence of readability as to different funding, to counsel that an funding of $1,000,000, which is a pittance in comparison with what we’re taking a look at shifting when it comes to revenues, it makes no monetary or enterprise sense to me,” Huskey argued.
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“It seems as if individuals don’t want to even have a considerate, well-researched foundation on which selections are made.”
Throughout an interview with Fox Information’ Sean Hannity final week, Florida’s governor teased an “entry tax” for a brand new wave of residents that might be enticed by zero property taxes as a way to make up for the lack of income.
The highest metro space the place People moved to between July 2019 and July 2021 was Sarasota, Florida, in keeping with Mayflower. | iStock
“For the actual property world, it would not profit or negatively have an effect on us in any method. Clearly, it depends upon how a lot that entry tax could be,” Gutman stated. “Sooner or later, you need to be okay with paying some type of charge and entry tax or no matter it takes to get right here.”
“From the standpoint of actual property gross sales basically, it will be very a lot a optimistic,” Huskey famous. “Nonetheless, I do suppose that as a way to attempt to offset any sort of entry tax, [it] must be nearly at an exorbitant stage based mostly upon the present migration that now we have. We aren’t experiencing the identical ranges of migration that we had throughout COVID by any stretch of the creativeness.”
“Who’s gonna construct the roads? Who’s gonna fund the [police]? Who’s going to fund schooling? Who’s to do all of the issues that have to be carried out to have a productive society?” Huskey additionally posed. “It will get again to the truth that everyone needs decrease taxes, however it should be strategic.”
“We have now created an atmosphere which is among the many greatest in your entire nation so far as the steadiness of business-friendly and way of life, and it’s crucial that we preserve that benefit that now we have.”
“I do not suppose he is gonna do something that is going to make the roadways much less protected, the education worse. He is simply not that kind of a governor,” Gutman countered. “He actually cares, for my part, concerning the individuals and the state of Florida. So he is not gonna do one thing that is gonna have a unfavorable impression from Jacksonville down.”
Each business execs moreover addressed considerations that this proposal disproportionately favors the world’s wealthiest residents.
“If you cross a legislation like that and get rid of property taxes, it is clearly gonna profit lots of people that actually did not want that profit to start with, proper? However that is only a actually small share of the folks that will likely be positively impacted… One thing like it is a actually broad stroke that will likely be throughout your entire state. And, finally, I do suppose that there is lots of people who’re in want of it,” Gutman stated.
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“I are likely to consider it’s a very regressive type of tax as a result of, finally, the burden goes to fall on a share foundation to these with extra restricted means,” Huskey stated. “The elimination of property taxes basically strips municipalities of any sort of native selections with regard to funding.”
“I’m very a lot in favor of total research to look at what’s the greatest methodology for elevating revenues within the state and whether or not that entails a discount in property taxes as a part of the combo… on the finish of the day, I am a enterprise individual. I run a big enterprise. I do know the numbers. And I wish to have anyone present me the numbers fairly than legislating within the absence of readability,” Huskey concluded.
