Center for State Tax Policy

Florida and Texas are competing to attract residents by offering low-tax environments. Florida's governor, Ron DeSantis, proposes expanding homestead exemptions to reduce property taxes, aiming to gain an edge over Texas, though critics warn of potential impacts on local government funding and services.

Florida Gov. Ron DeSantis is proposing to expand the state's homestead exemption to reduce property taxes, aiming to attract residents and businesses by offering a competitive edge over Texas. The plan could lower tax bills for millions of homeowners but may cost local governments over $8.4 billion annually in revenue, sparking debate over funding for public services.