The Case for Eliminating Property Taxes: Could Florida’s Bold Proposal Spark a Global Trend?
At Lazenby’s Financial Services, we’re always keeping an eye on global financial trends that could impact homeowners and investors. One of the most intriguing developments in recent months comes from Florida, where Governor Ron DeSantis has proposed a radical overhaul of the state’s tax system: the complete elimination of residential property taxes. This proposal, rooted in the belief that paying property taxes equates to “renting from the government” even after owning a home outright, has sparked heated debate and could set a precedent for tax reform worldwide. In this blog, we explore Florida’s proposal, its potential to become a trend across America, and how a similar move to abolish council tax in the UK could transform homeownership for British residents.
Florida’s Property Tax Proposal: A Game-Changer for Homeowners
Governor DeSantis has framed property taxes as an unfair burden, arguing that homeowners should not be forced to pay the government indefinitely to live in a property they own. His ambitious plan, announced in March 2025, aims to phase out property taxes entirely, starting with a $1,000 rebate for homesteaded properties in December 2025 and culminating in a constitutional amendment to eliminate the tax by 2027, pending voter approval.
In Florida, property taxes generate approximately $50–55 billion annually, funding critical services like schools, law enforcement, and infrastructure. To replace this revenue, DeSantis and supporters like Representative Ryan Chamberlin suggest a combination of increased sales taxes, budget cuts, and leveraging Florida’s tourism-driven economy to shift the tax burden onto non-residents, such as tourists. The governor has emphasized prioritizing Floridians, stating, “I want Canadian tourists and Brazilian tourists subsidizing the state so Florida residents pay less taxes.”
The proposal has ignited both excitement and skepticism. Proponents argue it would alleviate financial pressure on homeowners, particularly seniors and first-time buyers, in a state grappling with rising home values and insurance costs. Critics, however, warn that replacing property tax revenue with sales taxes could disproportionately burden lower-income residents and destabilize local government budgets, potentially leading to cuts in essential services like education and public safety.
A Growing Trend Across America?
Florida’s proposal is not an isolated phenomenon. The idea of reducing or eliminating property taxes is gaining traction across the United States, driven by rising housing costs and frustration with taxes that persist even after a mortgage is paid off. In Michigan, the AxMiTax proposal seeks to abolish property taxes, while states like North Dakota, Illinois, and Texas have explored similar reforms. Last year, voters in Arizona, Georgia, and other states approved ballot measures to lower property taxes, signalling a broader “groundswell of opposition” to this form of taxation, according to the Tax Foundation.
The appeal is clear: property taxes often hit hardest those on fixed incomes, such as retirees, and young families struggling with affordability. In Florida, property tax revenues have risen 40% on average over the past four years due to surging home values, exacerbating the housing crisis. Eliminating these taxes could free up thousands of dollars annually for homeowners, making homeownership more attainable and financially sustainable. However, no state has yet fully abolished property taxes, and Florida’s attempt would be a historic first, requiring a constitutional amendment and 60% voter approval by 2026.
The challenges are significant. Property taxes are a stable revenue source, unlike volatile sales taxes, which fluctuate with economic conditions. Critics argue that shifting to sales taxes could deepen inequality, as lower-income households spend a larger share of their income on taxable goods. Yet, the political momentum behind tax relief, coupled with Florida’s high-profile status and DeSantis’s national influence, could inspire other states to follow suit, potentially reshaping America’s fiscal landscape.
What Would Council Tax Removal Mean for UK Homeowners?
While Florida’s proposal is bold, it prompts a compelling question for the UK: what if council tax, the UK’s equivalent to property tax, were eliminated? Council tax, levied on residential properties to fund local services like waste collection, policing, and social care, is a significant expense for UK households. In 2024/25, the average Band D council tax bill in England is £2,171, with higher bands paying substantially more. For many homeowners, particularly those on fixed incomes or in high-value areas, this ongoing cost feels like a perpetual rent to the government, echoing DeSantis’s sentiment.
Removing council tax could deliver transformative benefits for UK homeowners:
- Increased Disposable Income: Eliminating council tax would save households thousands of pounds annually. For a Band D property, this equates to over £2,000 per year, which could be redirected toward mortgage payments, home improvements, or savings. For higher-band properties, the savings would be even greater, easing financial pressures for families and retirees.
- Boosting Homeownership Affordability: In the UK, rising house prices and high borrowing costs have made homeownership increasingly elusive, particularly for younger generations. Removing council tax would lower the ongoing cost of owning a home, making it more accessible for first-time buyers and reducing the financial strain on existing homeowners.
- Encouraging Property Investment: Without council tax, owning property would become more attractive, potentially stimulating the housing market. This could benefit investors and homeowners alike, as reduced carrying costs might encourage more people to enter or remain in the property market.
- Simplifying the Tax System: Council tax is often criticized for being regressive and outdated, based on property valuations from 1991. Abolishing it could pave the way for a fairer, consumption-based tax system, such as an adjusted VAT, which would spread the tax burden more evenly across residents and visitors, similar to Florida’s proposed model.
However, the challenges of removing council tax mirror those in Florida. Local councils rely heavily on council tax, which funds approximately 25% of their budgets in England. Replacing this revenue would likely require higher national taxes, such as VAT or income tax, or significant spending cuts. A shift to consumption-based taxes could disproportionately affect lower-income households, who spend a larger proportion of their income on goods and services. Moreover, the UK’s centralized fiscal system means any reform would require national coordination, unlike the state-level autonomy in the US.
Could the UK Follow Florida’s Lead?
While Florida’s proposal is still in its infancy, its potential to spark a trend across America could inspire UK policymakers to rethink council tax. The idea of true property ownership—free from ongoing government levies—resonates universally, particularly in an era of rising living costs. However, any move to abolish council tax would need to balance homeowner relief with the need to fund essential local services. A blended approach, such as increasing homestead exemptions (similar to Florida’s HB 359, which proposes exempting $100,000 of property value) or introducing tax rebates for seniors, could offer a middle ground.
At Lazenby’s Financial Services, we believe in empowering our clients to make informed decisions about their financial future. Florida’s property tax proposal highlights the potential for innovative tax reforms to enhance homeownership and financial security. While abolishing council tax in the UK remains a distant prospect, the conversation around fairer, more equitable taxation is one worth having. As we monitor global trends, we’re here to help you navigate the complexities of property ownership, investments, and financial planning.
Get in Touch
Ready to explore how tax changes or property investments could impact your financial strategy? Contact Lazenby’s Financial Services at www.lazenbysfs.co.uk to schedule a consultation. Let’s build a brighter financial future together.
Sources:
- Florida Governor’s Office and related news articles
- Florida Policy Institute and Tax Foundation analyses
- UK council tax data from gov.uk and independent research
- General sentiment from posts on X
Note: The information provided is based on current proposals and trends as of May 2025 and is subject to change. Always consult with a financial advisor for personalized advice.
