Florida’s Property Tax Debate: Eye Candy or Real Policy?
- Nicholas Scroggs
- Sep 3
- 3 min read
Big news out of Florida this week — the governor says he wants voters to decide in 2026 whether to wipe out property taxes. Sounds pretty good, right? I mean, if my property tax bill just vanished, I’d be celebrating with the rest of you. But let’s slow down a second. Big promises like this always come with a catch.
And here’s where it hits home: we’re having this same kind of conversation right here in Sussex County. Our county just wrapped up a long-awaited property reassessment, with new values set to kick in for 2026. A lot of folks are bracing for higher bills, even if the tax rate itself doesn’t change. So while Florida is talking about eliminating property taxes, we’re about to feel the impact of rising assessments in real time.
“No Growth, But Budgets Up 60%”
One of the talking points in Florida is that Broward County hasn’t had any new population growth in five years, yet their county budget is up 60%. At first glance, that sounds crazy — how can you need that much more money if you don’t have more people to serve?
Well, here’s what’s really going on:
Everything costs more. Wages, insurance, fuel, construction materials — you name it.
Property values shot up. Even if the county didn’t raise the tax rate, higher home values automatically push tax bills higher.
And when local governments see more money rolling in, they tend to spend it.
Sound familiar? That’s basically what’s about to happen here in Sussex. The reassessment doesn’t automatically raise your tax rate, but if your home’s new value is higher (and most are), your bill could still climb.
The Promise: Kill the Property Tax
Getting rid of property taxes altogether sounds like a silver bullet. No more feeling like you’re “renting your house back from the government.” Retirees and families on fixed incomes would breathe easier. Politically, it’s a slam dunk headline.
But here’s the problem: Florida doesn’t have a state income tax either. So if they kill property taxes, where’s the $43 billion that funds schools, police, fire, and basic services going to come from?
The Reality: The Money Has to Come From Somewhere
Property taxes aren’t just a nuisance. They’re the backbone of how local governments run:
Schools get more than half their funding from them.
Counties and towns rely on them for about 20% of their budgets.
Take that away and the hole is enormous. The options? None of them are painless:
Raise sales tax from 6% to 11–12% (yep, the highest in the country).
Start taxing services (accountants, haircuts, legal fees).
Hike tourism taxes — hotels, car rentals, theme parks.
Or cut back on schools, fire departments, and police budgets.
One way or another, somebody’s still paying.
Why Float This Now?
So why roll out such a massive idea without a clear plan? Simple — it sounds good. It grabs headlines, gets applause, and makes people say, “Finally, someone’s looking out for us.”
The reality? Putting this on the 2026 ballot is only 18 months away. You’d need economists, lawmakers, and county leaders all lined up with a replacement plan yesterday. That hasn’t happened. Which makes this feel more like a campaign soundbite than a ready-to-go policy.
Why It Matters in Sussex County
Here’s where it all connects: Florida is floating the idea of killing property taxes. Meanwhile, Sussex County homeowners are about to get their first reassessment in decades — and many will see their taxable values jump starting in 2026.
So while Florida is talking about eliminating property taxes, we’re bracing for higher ones here, even if rates stay flat. Different states, same frustration: homeowners are tired of feeling squeezed by bills that rise just because the value of their home went up.
Bottom line: Eliminating property taxes makes for a great headline. But unless there’s a clear replacement plan, it’s not real relief — it just shifts the burden around. And here in Sussex County, our reality isn’t elimination, it’s reassessment — which means the best thing you can do is understand how the new values will affect your tax bill in 2026.
Nick Scroggs, REALTOR®
📱 302-363-4743
🏢 Millsboro Office: 302-934-3970
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