Attys Say Fla. Tax Proposal Could Shift Burden to RE Industry

Real Estate attorneys Janna Lhota and Nicholas Milano were featured in a Law360 article detailing how proposed Florida property tax relief would affect the state's real estate industry. If approved by voters in the November elections, Amendment 3 would raise the homestead exemption on the assessed value for non-school property taxes from its current level of $50,000 to $150,000 in fiscal year 2027-2028 and $250,000 in fiscal year 2028-2029, in addition to lowering the cap on annual investment increases for non-homesteaded properties such as rental buildings from 10 percent to 5 percent. Professionals interviewed by Law360 acknowledged a tax break may entice many property owners feeling the pressure of rising costs but said how much money they save in the long term is more nuanced.

One major concern is the loss of revenue for local governments. Janna, who serves as chair of the Fort Lauderdale Chamber of Commerce, reported that homestead properties encompass as much as 70 percent of some Broward County cities' tax bases, making any exemption changes especially impactful. Nicholas added that "less money in the coffers doesn't necessarily mean residents are expecting less services" and predicted most municipal leaders will try to find solutions to make up the difference. Both attorneys expressed alignment with calls for changes to the property tax regime while pointing out these consequences for residents and elected officials.

"I think we all agree that property tax reform is definitely warranted and needed, but we want to make sure it's done in a thoughtful manner so that there are no unintended consequences, specifically as it relates to the business community," Janna commented.

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