Florida voters are considering the elimination of residential property taxes, prompting the state’s governor to propose increasing taxes on Canadians who own property in the state. Canadian property owners in Florida view this as another challenge since U.S. President Donald Trump’s anti-Canada stance. Governor Ron DeSantis is advocating for Amendment 3, a ballot measure introduced by his Republican counterparts, which will be decided in the upcoming midterm election.
The amendment aims to significantly enhance the existing property tax exemption for Florida “homesteaders,” benefiting nearly 60% of them with primary residences valued at $250,000 US or less. The measure also plans to phase out property taxes for homesteaders entirely over time. The proposal requires a 60% supermajority to pass, with polls indicating strong support for it.
Economists estimate the annual cost of this amendment to be around $12 billion US, leading local governments to face budget challenges. Governor DeSantis has explicitly mentioned tapping into Canadian property owners to bridge the budget gaps, emphasizing the focus on providing relief to Florida residents.
While the amendment reduces taxes for Florida residents, it allows for a yearly increase of up to 5% in the assessed value of non-homesteaded properties, such as those owned by Canadians. This provision is expected to boost revenue for local governments.
Some Canadians, like Glenn McGill of Wiarton, Ont., are considering selling their Florida properties due to DeSantis’s tax proposals and the changing political climate. The potential impact on Canadian property owners and the housing market, combined with the decline in Canadian tourism to Florida, raise concerns about the economic repercussions of these tax changes.
Critics of the amendment warn of severe consequences, including cuts to public services if property taxes are eliminated. The proposal’s potential effects on the housing market, coupled with the strained relations between Canadians and Florida due to political tensions, highlight the complex challenges faced by both residents and property owners in the state.