Florida weighs property tax cap impacting renters statewide | JQJO

TAMPA, Florida — Florida lawmakers have advanced a proposed constitutional amendment that would limit annual increases in assessed values for certain properties, including many owner-occupied homes, to no more than 5%. In the Tampa Bay area, where more than half of renters already spend at least 30% of their income on housing, local governments say the cap could significantly reduce property tax revenues if voters approve it. The measure would restrict how quickly taxable values on the covered properties can grow, even as market prices rise, and is framed by supporters as a way to give homeowners more predictable tax bills.

TAMPA, Florida — Local officials and analysts say that if cities and counties collect billions less in taxes from homeowners under the amendment, they are likely to look to rental, commercial and other non-capped properties to make up the difference. Because property taxes are a major operating cost for landlords, higher tax burdens on apartment buildings and other rental properties could feed into rent calculations and add to existing affordability pressures for tenants over time. The proposal would also apply the 5% limit to certain other properties whose assessed values are used to determine their tax bills, further shaping how local tax burdens are distributed.