[Bruce]

Florida Governor Ron DeSantis’ Bold Plan for Property Tax Relief

In March 2025, Florida Governor Ron DeSantis revealed a more immediate property tax relief plan for Florida homeowners, demonstrating his intent to remove property taxes within the Sunshine State. During a press briefing in Orlando, his tax relief blueprint drew attention from lawmakers, homeowners, and policy analysts. With state-controlled property values creating an additional financial burden to the residents of Florida, DeSantis intends to provide tax relief to homesteaded homeowners while upholding “Florida-first” tax policies. Through this blog, I will outline the proposal’s details, discussing its conceivable impacts, the political dynamics involved, and the hurdles it faces.

The Proposal: Short-Term Relief with a Long-Term Perspective

Florida Governor DeSantis plans to relieve property tax burdens by slicing them up for Florida’s 5.1 million homesteaded property owners. The main parts of the proposal include:

$1,000 Rebate for Homesteaded Properties:

Redirecting the $5 billion set for a sales tax cut to provide a one-off property tax rebate of $1,000 per homestead is a core proposal of DeSantis. These rebates are intended to be disbursed in December 2025 and will reimburse state-mandated school property taxes (RLE). The state would offset the RLE using budget reserves, ensuring full recovery of funds to school districts so that educational services are not impacted.

Along with tax relief, the Governor will place a constitutional amendment for voting in November 2026. This constitutional amendment would “eliminate” or radically reduce the property tax in Florida, which would require 60% of voter support to pass. In his campaign, the government asserted this is the “main event” of his efforts to overhaul Florida’s taxation system, highlighting that property taxes “rent for the government” on the house paid for by the homeowners.

Shifting the Tax Burden:

Governor DeSantis seems to be taking a “Florida-first” approach by continuously emphasizing that tax relief should cater to residents, not tourists or non-residents. He suggested that foreign tourists such as Canadians and Brazilians could pay more through increased taxes, which, in turn, would help recoup the revenue loss from reduced property taxes. Such an arrangement would help offset the revenue loss from decreased property taxes and reduced tourist spending, but it ignores several implementation details.

DeSantis’s strategy also addresses homeowners’ growing frustration with increasing property values across Florida. DeSantis has repeatedly criticized property taxes as an “oppressive tax burden,” one that enslaves so-called property ownership by demanding perpetual payments to local governments.

Why Property Tax Relief Matters in Florida

As the Florida Policy Institute estimated, property tax collection remains a major revenue source for local governments and school districts. They generate about $42.7 billion annually, almost $2,000 for every state resident. These revenues fund vital public services such as public education, policing, firefighting, park maintenance, and infrastructure services (roads and bridges). Nevertheless, the rapid growth in property value, coupled with soaring tax assessments, has placed a considerable burden on homeowners.

Veteran Bill Hyde of Oviedo supports DeSantis’ proposal, mentioning how property taxes take a significant portion of their income. “We’re retired.” During a press conference with DeSantis, Hyde stated, “We live on a fixed income, and property taxes significantly impact our budget.” Plant City resident Kathleen Hauff expresses concern about receiving Social Security income and paying property taxes. She states, “Between our property taxes and homeowners’ and car insurance, we can’t live here anymore.”

Florida is among the most affordable states, as people do not pay state income tax. According to Florida’s average effective real estate tax, WyellHub estimates the property tax for Florida to be $325,000, which places it in the middle ground of all US states at 0.79%. However, as taxes on average homes are $2,55, alongside the rise in homeowners insurance, it would make living in Florida unaffordable.

The Political Divide: Support and Opposition

DeSantis is sparking controversy within Florida’s GOP-controlled legislature with his counter-proposal to cut the sales tax to 5.25% from the current 6% rate, which House Speaker Daniel Perez suggested. Perez’s plan, which is projected to save taxpayers approximately $5 billion a year, would yield savings for a larger number of people, including tourists and out-of-state residents. DeSantis has been vocal in condemning this plan, stating that it “undermines the relief” intended for the state’s residents. DeSantis quipped, “I would rather not give Canadians a tax cut,” demonstrating his stance on prioritizing Florida homeowners.

As Perez appears open to further collaboration with DeSantis, stating, “I welcome the governor’s proposal and look forward to more conversations on how we deliver meaningful tax relief for every Floridian,” it is clear that the gap still exists. Senate President Ben Albritton has taken a more tempered approach, cautioning that aggressive tax cuts may lead to budget deficits down the road, reminiscent of the Great Recession. Albritton fiercely defended the provision of essential taxpayer-funded services and stated the need for a balance between providing tax relief and servicing critical infrastructure such as transportation, clean water, health care, and public safety.

Democrats, with a supermajority in the legislature, are worried about eliminating property taxes. House Democratic Leader Fentrice Driskell pointed out the absurdity of suggesting teachers, law enforcement, or even sanitation workers would take cuts to pay for the $43 billion in revenue property taxes generated. It is also pointed out that shifting the burden to sales tax would be even worse for lower-income groups since they are already disproportionately affected by the more regressive nature of sales taxes.

Possible Effects and Problems, Benefits for Homesteaded Property Owners

The immediate rebate of $1,000 would benefit senior citizens and other individuals on a fixed income, relieving the 5.1 million homesteaded property owners in Florida. Restricting the RLE portion of property taxes to preserve school funding supports the concern about service cuts. Furthermore, the amendment DeSantis suggested would fundamentally alter the tax structure of Florida, which he considered too regulated for government control, as it would ease the homeownership process.

Threats to Local Governments

Taxes on property form one of the key revenues for local government, financing almost all school district revenues, police, fire services, and infrastructure. For the Florida Policy Institute, obtaining the same revenue through alternate sources would equate to $43 billion, a staggering figure. For critics like Tampa City Council member Luis Viera, doing away with property taxes could “wreak havoc” on local communities where spending on public safety and public schools is greatly reduced.

Economic and Fiscal Aspects

With Florida having a robust fiscal position containing a budget surplus of $14.6 billion in the projected 2025-2026 budget, some leeway for funding the one-time RLE elimination exists. However, if property taxes are eliminated permanently, drastic changes would need to be made to Florida’s tax system. As a suggestion, DeSantis proposed using the DOGE (Department of Government Efficiency) to seek audits of local spending and locate more wasteful spending that could offset the lost revenue. However, skeptics are more concerned with long-term fiscal health without a plan to replace the $43 billion annually expected from property tax revenue.

Comparison to Other States

The attempts at repealing property taxes in Florida are similar to the initiatives taken in Republican control states like Pennsylvania, Illinois, and Kansas, where increasing property taxes have been met with fierce resistance from homeowners. This balancing act becomes even more difficult when considering North Dakota, which, in November of 2024, voters rejected a tax relief proposal to alleviate the constraints of subsidizing essential services. Although Florida may have the edge as a tourism-reliant economy to pass some tax burdens onto visitors, whether or not this is plausible is uncertain.

Public and Industry Support

Organizations such as Florida Realtors have supported the proposal, and its President, Tim Weisheyer, has publicly deemed it eloquent as a move to protect the “American dream” of homeownership. Jim Savina and Winter Park resident Tami Klein have also shown enthusiasm towards it, with Savina stating, “Every time I get my tax bill, it seems great if that could be lowered or eliminated.” As the discourse has shifted to social media platforms, it is evident that most taxpayers loathe property taxes, which are dubbed the second most disgraced tax after the federal income tax, according to a recent Gallup survey.

The Road Ahead

Florida’s legislative session for 2025 will start on March 4 and end on May 2. This will be the most important time frame for DeSantis to push through his proposal. Although the rebate would be more than a thousand dollars, it could be implemented through legislative action. However, the constitutional change will need much more support and must be approved by 60% of voters in 2026. Some bills have been proposed, such as SB 1018 and HB 357, which plan to increase the homestead exemption, but remain stagnant. This may indicate potential roadblocks in implementing certain legislation.

DeSantis frames his proposal as an initial push in a larger, systemized battle to reform Florida’s tax system. His work with the DOGE task force to examine local government spending and his transparency push indicate that he is trying to gain public support in multiple ways. Still, the public’s lack of information on a proper replacement plan for property tax revenue will slow negotiations between the proposition and the House and Senate.

Florida: Property Tax Relief Proposal by DeSantis

Governor Ron DeSantis’ plan for property tax relief rebates is Florida’s change that disturbs the local government funding equilibrium, straining Florida homeowners. Immediate rebate implementation and constitutional amendment moves will help ease the financial woes and reshape property holdings in Florida. However, fiscal, political, and logistical issues will be the backbone of the success of this plan, alongside legislative approval and revenue source sustainability. With such complexity around property taxes, it will remain an intense debate impacting local governing bodies and the economy moving towards the 2026 ballot.

For further information regarding budget proposals and tax relief plans, check out updates from the Florida Legislature or visit the Governor’s Executive Office.

Sources: Executive Office of the Governor, WESH, FOX 13 Tampa Bay, Tallahassee Democrat, Florida Policy Institute, CBS Miami, ABC Action News, Newsweek, and posts on GCA Mortgage Forums News.

https://www.youtube.com/watch?v=cGWWKOdNhvs

[Bruce]

VERY ANTISEMITIC’: Trump threatens to give $3 billion in Harvard grant money to trade schools. In his most recent statement, Trump declared he would funnel “$3 billion in federal aid away from Harvard, whose antisemitic policies and refusal to hand over requests for a list of foreign students have enraged the public, into trade schools.” This comes after his administration attempted to “freeze 2.2 billion dollars in grants for Harvard and also to block the enrollment of international students, which Harvard is legally contesting as unconstitutional.” The grants meant for medical research are set aside by Congress, and redirecting research funds to trade schools will surely face practical and legal challenges. In his public statement replying to this claim, Harvard firmly maintains its position as adherent to anti-discrimination laws and is amending policies to mitigate antisemitism further. While the approach is commendable and in line with a shift toward vocational education, it still lacks a roadmap for execution.

https://www.youtube.com/watch?v=Cj1BWSderJk<

[Bruce]

Progress on President Donald Trump’s Proposals to Remove the IRS and Property Taxes

(as of May 27, 2025)

President Donald Trump has shown interest in amending or completely abolishing the Internal Revenue Service (IRS) and income taxes (alongside property taxes) as part of his tax policies for a second presidential term. With supporters heralding a modernized tax framework, critics have voiced concern over practical implementation. Given his latest statements, we have included an article with more details below. We also updated the plans to remove the IRS and lower property taxes based on posts from X and other web sources. As to your earlier question about the potential effects of these changes on non-filers receiving IRS Letter 11, I will also give you my input.

Proposals to Abolish the IRS

President Trump and his administration mentioned the suggestion to abolish the IRS and capital income taxes. Instead, they proposed tariffs and other indirect taxation measures as the primary means of revenue generation. He and his Commerce Secretary Lutnick have made certain statements that suggested the creation of an “External Revenue Service” (ERS), which was set up to collect tariffs and other indirect taxes, hence lessening the reliance on income taxes. It forms a part of Trump’s agenda, which seeks to reduce taxes for individuals and corporations, increasing the tax burden on imported goods.

The most important sections of the IRS abolition proposal overview are the following:

Complete Deletion of Income Taxes:

Trump proposes to eliminate federal income taxes, initially focusing on individuals below $150,000 or $200,000. Long-term plans indicate the complete abolishment of income taxation.

Revenue Generation Via Tariffs

This plan relies on collecting high tariffs on various imported items, such as ten percent for Chinese imports and twenty-five percent for cars, pharmaceuticals, and semiconductor goods from Canada and Mexico. The target is to collect enough revenue to substitute for the roughly $3 trillion collected annually from income taxes.

External Revenue Service (ERS):

This new body, proposed to manage tariff revenue collection, will take over the IRS, shifting focus from domestic to international taxes.

Reductions in IRS Personnel:

The Trump administration has already taken actions to reduce IRS staff in controlled phases. The reduction of approximately 6000-7000 staffed auditors and compliance personnel in the 18% cut in “Phase 1” has already been reported, and added resignations and retirements reduced capacity even more.

Changes Taken and Progress Made

Actions Taken:

Trump has stopped federal hiring, which has led to the cessation of IRS agent hiring. This has limited the agency’s growth in response to the newly funded 87,000 agents from the Inflation Reduction Act.

This follows his rhetoric for the campaign concerning IRS impositions.

Legislative Support:

The Fair Tax Act of 2025, introduced by Rep. Earl L. “Buddy” Carter (R-GA) and backed by 11 Republican legislators, seeks to eliminate the IRS and substitute income taxes with a national sales tax (consumption tax). Although it does not wholly align with the Trump tariff-centered tax proposal, the bill demonstrates congruent objectives of IRS elimination and tax system simplification.

Leadership Changes:

Trump has picked FORMER REP. BILLY LONG TO REPLACE IRS COMMISSIONER DANY WERFEL, whose tenure runs to 2027. While not particularly known for tax expertise, Long’s support of the Fair Tax Act and his alignment with Trump’s anti-IRS policies make this appointment plausible.

DOGE Involvement:

Under the charge of Elon Musk and Vivek Ramaswamy, the Department of Government Efficiency (DOGE) is advocating for budget cuts, including for the IRS. Some of DOGE’s actions, like trying to obtain taxpayer information and drastically cutting programs, including the IRS Direct File, demonstrate an intent to reconfigure or eliminate the agency.

Issues and Objections

Collection Revenue:

Critics believe that using tariffs in place of income taxes is mathematically complicated.

America generates over $3 trillion in income tax revenue each year and spends that same approximate value on imports. To achieve tax revenue goals, tariffs would alternate between a minimum of doubling and a maximum of 200% to satisfy reduced consumption. The outcome is increased inflation, trade concerns, and reduced purchasing power for the consumer.

Economic Impact:

Focused on revenue generation, these encouraging domestic spending can lead lower-wage households to suffer due to stagnant spending power and disproportionate taxation hits on cars, electronics, and clothing tariffs.

IRS Functionality:

Reduced staffing at the IRS may result in lesser tax compliance within households and larger corporations, leading to lower confidence in revenue systems and thus deepening the federal deficit. Currently, 17.1% of GDP is spent on revenue and 23.4% on expenses.

Legislative Hurdles:

Even with a Republican majority, the income tax and IRS system still require multiple hurdles to be completely overcome.

Support for the Fair Tax Act has declined from 26 co-sponsors in 2023 to 11 in 2025. Also, budget reconciliation restrictions (e.g., Byrd rule) and non-revenue changes are limited.

Current Status

As of May 27, 2025, the proposal to abolish the IRS is still unlegislated, meaning no laws have been passed that would allow for the dismantling of the IRS or the complete substitution of income taxes for tariffs. The IRS remains functional, albeit at a skeleton staffing level, and the filing of tax returns is still compulsory. The administration’s tariff strategy (25% tariffs on Canada and Mexico, 10% on China), combined with proposed staffing reductions, demonstrates an intent to weaken the IRS over time. Experts, however, stress that the income tax and the IRS will continue to endure because of their fundamental importance for federal revenue.

Suggestions Relating to the Taxation of Property

While the focus remains on eliminating income tax, Trump has also touched on the possibility of altering property tax, especially through modifying the State and Local Tax (SALT) deduction, which covers property tax. Since state governments and local authorities mostly impose property tax, any federal intervention would be tax deductions rather than elimination.

Highlights of the proposals about property taxes are the following:

• SALT Deduction Cap: Under the Tax Cuts and Jobs Act of 2017, the deductible limit for SALT was set at $10,000 ($5,000 if married filing separately), which curbed the deductible amount of state and local taxes, including property taxes, on federal returns.
• Some proposals suggest lifting this cap or raising it to help beneficiaries of high-tax states such as California, New York, or New Jersey.
• House GOP Bill: A recent House bill, passed on May 22, 2025, suggests increasing the SALT cap to $40,000 ($20,000 if married filing separately) starting in 2025.
• The increase would be phased in for incomes over $500,000 ($250,000 for married filing separately).
• Although an increase is proposed for federal deductions for property taxes, they are not expected to be abolished.

No Direct Federal Property Tax Abolishment:

Due to the nature of property taxes, which are state and local, Trump cannot abolish them directly. Any claim to abolish property taxes would involve providing better federal deductions or offsets instead of eliminating them.

Actions Taken And Developments

Campaign promises:

Due to pressure from lawmakers in high-tax regions, Trump has shown interest in eliminating the SALT cap. The House bill incorporates this but is currently pending Senate consideration, where it is expected to undergo multiple revisions.

2025: What Will Happen When The TCJA Expires (bgov.com)

Trump Is Back In Office: 2025 Tax Policy Changes Trump Plans to Enact Starting 2025-03-25

Real Estate Effects:

Raising the SALT deduction may incentivize federal investment by real estate investors, especially in high-tax regions. In addition to these policies that would benefit property owners, Trump’s wider plan includes protecting 1031 like-kind exchanges and offering 100% bonus depreciation.

What A Second Trump Term Could Mean For Real Estate And Taxes

Evidence Suggesting No Abolition Plans:

While some social media posts claim to abolish property taxes, no credible legislative or executive documents propose their complete removal. These arguments could come from misinterpretations of SALT deduction adjustments alongside loose anti-tax proposals.

Challenges and Criticisms

Funding Concerns:

Increasing the cap on state and local tax (SALT) deductions would decrease federal revenue. Estimates project that a $40,000 cap would reduce revenue by billions over ten years. This contradicts Trump’s tariff revenue goals since it lowers the tax base.

State and Local Control:

Property taxes are under the jurisdiction of state and local governments, making federal abolition infeasible without radical changes such as a constitutional amendment or the incentivization of states on a federal level, neither of which has been proposed.

Equity Issues:

The primary beneficiaries of increasing the SALT deduction will be high-income earners residing in states with steep taxes, which could worsen the wealth gap. Critics have pointed out that this goes against Trump’s desire to provide tax relief for the middle class.

Current Status

As of May 27, 2025, no proposal to eliminate property taxes on a federal level remains. The focus is on increasing the cap on the SALT deduction. The House bill suggests a higher cap as part of a broader tax deal that also seeks to extend the provisions of TCJA. This bill is in the Senate and has uncertain prospects due to fiscal concerns and differing Republican priorities.

Consequences for Non-Filers and IRS Letter 11

Considerations for Non-Filers

Individuals who fall into the non-filer category and receive the IRS Letter 11 (Final Notice of Intent to Levy) for unpaid tax dues and unfiled returns are potentially impacted by these proposals in this way:

Reduced Enforcement by the IRS:

Reduced audits and staffing benefit those who have not filed taxes, as deferral of compliance will likely postpone the enforcement of automated levies. This assumes that no automated systems can apply levies, which is not a safe bet. Letter 11 is designed to alert recipients about discretionary compliance options where their automated compliance processes have previously gone unaddressed (for example, prior CP59s).

A Possible Rebate:

Some non-filers will have their issues raised in Letter 11 resolved if income taxes are removed for non-filers and capped at $150,000. This is provided, of course, if the person does not exceed that income threshold and does not have SFRs assessed tax filings.

Alterations to the SALT Deduction:

The increased SALT deduction marginally eases tax liability, resulting in federally imposed tax for non-filers with property tax obligations; however, in the context of the state/local tax property, they will remain unrelieved until filings are made to access this benefit.

Ongoing Hazard:

Non-filers are subject to charges such as levies and liens regardless of proposal changes until the IRS is completely abolished, which is unlikely anytime soon.

Letter 11 can automatically be generated by the IRS systems using third-party income information, regardless of personnel cutbacks.

What Non-Filers Should Do

With the possibility of an IRS overhaul and changes in tax policies, non-filers with Letter 11 in hand should promptly:

File Missing Returns:

To contest the IRS substitute returns, submit Form 1040. This may lower liability by claiming deductions (like SALT), credits, or deductions. Include Form 15103 explaining the non-filing reason.

Request a CDP Hearing:

You must use Form 12153 within 30 days to appeal the levy and submit alternate actions (payment plans, offer in compromise). Given IRS cuts, enforcement action delays are critical.

Watch for Tax Policy Changes

If tax cuts for lower-income earners are implemented, non-filers may benefit. However, returns must be filed to claim exemptions. Relief through SALT changes also mandates filing.

Get Help:

If you need guidance, you can contact an LITC and a tax professional. The Taxpayer Advocate Service (877-777-4778) can also help.

Consequences of Not Taking Action

Levies and Liens:

While staff cuts may delay enforcement, non-filers with known income will continue to be subject to automated wage or bank account levies.

Missed Benefits: Non-filers will not benefit from Trump’s proposed tax cuts, such as no tax for those earning less than $150,000 or increased SALT deductions, unless they file returns.

Penalties and Interest: Penalties for non-response to Letter 11 increase the existing penalties, such as the failure-to-file penalty of 5% monthly, capped at 25%. Penalties for both interest and filing taxes increase even when the IRS is short-staffed.

Public Opinion and Political Environment

Support on GCA Mortgage Forums News:

Several posts on GCA Mortgage Forums News support the estimate Trump released with his IRS termination and tax cut plans. They claim boosts to productivity, unprecedented economic growth, and massive consolidations, citing “45,000 agents fired.” These statements, however, are unsubstantiated and revert to baseline, further corroborated by credible reporting of 6,000-7,000 layoffs and operational IRS.

Criticism of GCA Mortgage Forums News

Many also point out the irrationality, assuming that income taxes will not be substituted with tariffs, which would be heavily priced on consumers. One comment points out the illogical premise of taxing consumers with uneven wealth, such as 800 families owning 90% of the entire wealth.

Political Dynamics

The Republicans hold Congress, which is inclined towards preserving certain elements of the TCJA and other Trump tax cuts. Due to revenue concerns, GOP circles are reluctant to abolish the IRS or the income tax. The Senate’s reaction to the House bill is going to be pivotal.

As of May 27, 2025, Proposals put forward by President Trump to eliminate the IRS and replace income taxes with tariffs are very preliminary. Actions being taken include staffing reductions and the imposition of tariffs. Still, no legislation eliminates the IRS or the income tax. While there is no direct proposal to abolish the property tax, the SALT deduction cap increase proposed would lower it indirectly, but it is congressionally controlled. These proposals alleviate short-term enforcement pressure for non-filers issued with IRS Letter 11. However, immediate action (filing returns and requesting a CDP hearing) is necessary to protect against levies and access potential relief from generous tax provisions. Due to the economic environment, the viability of the proposals is questionable. Thus, until changes are made to proposals, taxpayers must continue to comply with filing requirements.

If you need help, please share the tax years owed, income level, or property tax concerns, and I can help you. Official support is available at irs.gov or by calling the number on your Letter 11.