Florida weighs ditching property taxes and sticking Canadians with the bill
'I don't want to give Canadians a tax cut,' Florida governor says as he pushes to end property taxes for some
Florida voters are weighing whether to scrap residential property taxes and the state's governor has a solution to that potentially huge revenue loss: tax Canadians more.
Canadians who own property in Florida describe the threats to shake them down for more money as just the latest insult in a series of them since U.S. President Donald Trump returned to power last year with a decidedly anti-Canada agenda.
Republican Gov. Ron DeSantis has railed against property taxes, which fund local governments and the services they provide — law enforcement, fire, EMS, disaster preparation and mosquito control, among many others — equating them to a form of modern-day feudalism where homeowners must "pony up money to the government just for the courtesy of using your own property."
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homeowners → weigh → property
To end this, DeSantis is pushing Amendment 3, a ballot measure crafted by his Republican statehouse allies that will be put to voters in the midterm election next month.
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that → end → election
If passed, Florida "homesteaders," as permanent residents are called, will see a dramatic increase in an existing property tax exemption.
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residents → pass → exemption
Any Floridian with a primary residence valued at $250,000 US or less — about 60 per cent of all homesteaders, according to the governor's office, although that figure has been questioned — would pay nothing and those with a home worth more than that would pay much less than they do now.
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they → value → less
The measure also calls on the state to eliminate homesteader property taxes entirely over time.
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measure → call → time
This constitutional amendment requires a 60 per cent supermajority, and at least one recent poll suggests it will easily clear that hurdle.
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it → require → hurdle
State economists project such a move will cost about $12 billion US annually, forcing local and county governments that depend on these taxes to make deep cuts, find new revenue elsewhere or both.
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that → project → revenue
That's where things could get more expensive for the Canadians who own an estimated $60 billion US worth of property in the Sunshine State.
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who → get → State
DeSantis has explicitly described them as a resource to tap to close expected budget gaps.
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DeSantis → describe → gaps
"We need to focus on our Florida residents.
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We → need → residents
And focus on, in this case, Florida homeowners, particularly our homesteaded homeowners, and we need to focus the relief there," DeSantis said at a news conference last year defending his call for lower property taxes instead of a sales tax cut.
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DeSantis → focus → cut
"I want Canadian tourists and Brazilian tourists subsidizing the state and making it so Florida residents pay less taxes.
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residents → want → taxes
I don't want to give Canadians a tax cut."
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I → want → cut
In an interview with Fox Business in June, DeSantis said that while homesteader property tax revenue will be a fraction of what it once was if the measure passes, Canadian property owners won't see any of that relief, which could help pad local coffers.
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which → say → coffers
"They tax property that is non-homestead: residential, Airbnb, Canadian snowbirds, commercial.
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that → tax → property
That's a lot of money that they have," DeSantis said of local and county governments.
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DeSantis → have → governments
While reducing taxes for Floridians, the ballot measure also dictates that the assessed value of a non-homesteaded property — owned by a Canadian or another non-resident — can increase by up to 5 per cent a year, steadily raising the revenue local governments can collect.
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governments → reduce → revenue
"They are going to start getting more revenue from existing taxes without having to add new taxes and they're going to end up in a very stable situation very shortly," DeSantis said.
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DeSantis → go → situation
Snowbirds 'fed up'
DeSantis has routinely poked at Canada — including its perennially losing hockey teams.
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DeSantis → feed → teams
He initially mocked the trade war-induced travel boycott, saying he didn't think it would meaningfully materialize, only to see his state tourism bureau report a double-digit drop in Canadian arrivals last year.
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bureau → mock → arrivals
Some Canadians who have put down seasonal roots in the state have had enough of the taunts.
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who → put → taunts
Glenn McGill of Wiarton, Ont., has been wintering in North Fort Myers, Fla., a community once well-populated with fellow Canadian sunseekers, for the last 15 years.
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McGill → winter → years
But after Trump's second win there's been what he describes as a "stampede" of Canadians out of the park he and his wife Deb long thought of as a second home.
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he → be → home
He says there are only four Canadians left in the sprawling retirement community, a fraction of what there once was when he first started going south.
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he → say → community
McGill said DeSantis's threat to lean on Canadians to make up for lost property tax revenue will only drive more of them away, including himself — he listed his home for sale.
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he → say → sale
"They're a greedy bunch of SOBs," McGill said in an interview with CBC News.
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McGill → say → News
"They want to drive Canadians out."
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They → want → Canadians
"Those who are well off really don't care but we're not rich, we're not broke, we can do the Florida thing comfortably, but starting to pay extra taxes — that would hurt," he said.
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he → care → taxes
"And this political thing with Trump, I've had enough of it."
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I → have → it
With so many Canadians leaving or staying away, McGill says the housing market in Florida has been tough to navigate as a seller.
"
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market → leave → seller
The market's pretty dry," he said.
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he → say → ?
"It's listed, but it hasn't sold yet."
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it → list → ?
Canadians make up the vast majority of foreign property buyers in areas along Florida's Gulf Coast.
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Canadians → make → Coast
According to Realtor.com data, Canadians represent more than 70 per cent of international demand in the Cape Coral metropolitan area, which includes McGill's community.
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which → accord → community
And with Canadian sales nowhere near pre-trade war levels, the firm says local sellers face "real pricing pressure" with properties listed for weeks longer than the national average.
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sellers → say → average
The areas of Florida that have historically attracted the most Canadian interest are projected to see the largest drop in home prices this year, according to the firm's projections.
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that → attract → projections
Edie Ousley, a spokesperson for Vote No on 3, a group opposing the property tax ballot measure, anticipates more housing market shocks given a possible flood of new Canadian-owned home listings if this tax change takes effect.
"Gosh, it wouldn't surprise me if there's an exodus of Canadians — they are going to be hit significantly," Ousley said in an interview.
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Ousley → oppose → interview
It's a train wreck for those who come in the winter.
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who → come → winter
Those Canadian snowbirds are going to be impacted with additional taxes — this is a tax shift, it's not tax relief," she said.
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she → go → taxes
'Everyone is going to lose'
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Everyone → go → ?
…and 27 more, not listed.
The Aporia
