Florida lawmakers are considering a proposal to eliminate property taxes through a constitutional amendment set for the November 2026 ballot. This development has prompted discussions about the potential effects on public school funding across the state.
Public schools in Florida receive funding from both state and local sources. The state’s contribution is mainly funded by sales taxes, while local governments contribute primarily through property taxes. Local funding accounts for approximately 46% of the Florida Education Finance Program (FEFP), which is the primary funding source for public schools in the state. However, each district’s reliance on local funds varies significantly; some districts receive as little as 10% of their FEFP funding from local property taxes, while others depend on it for up to 90%.
This variation is managed by a process called required local effort (RLE), which determines how much revenue each county must contribute based on its property values. Counties with higher property values are expected to provide a larger share of their school funding through property taxes, while those with lower values rely more heavily on state support.
The potential elimination of property taxes raises concerns for all counties. Even districts like Holmes County, which depend largely on state aid, could face negative consequences if property tax revenues disappear. In counties such as Walton, where nearly 90% of FEFP funding comes from local property taxes, continued operation of public schools without this revenue would be difficult.
“Changes to property taxes should always carefully consider the local impacts, and any changes must ensure that school funding does not suffer.”
Because of these complexities and the varied impact across counties, Florida’s Office of Economic and Demographic Research (EDR) was tasked with studying the possible outcomes and offering policy solutions to address any negative fiscal effects. However, Governor Ron DeSantis vetoed the funding necessary for this study.
“That being said, we don’t need to wait for state economists to conduct a study on property taxes. Earlier this year, the Florida Policy Institute released their analysis showing that eliminating property taxes would require doubling the state sales tax to make up the lost revenue.”
As legislative proposals become clearer in coming months, further analysis will be provided regarding what is at stake for students, educators, and communities throughout Florida.
