DeSantis tax plan could hollow out Florida’s bedroom communities’ tax bases

Gov. Ron DeSantis’s plan to expand the homestead exemption to $250,000 would slash local property tax revenue for central Florida bedroom communities (Belle Isle, Winter Garden, Oakland, Ocoee) by about 25%–33%, threatening budgets for core services and even bond ratings; Orlando would face a smaller hit. The phased plan starts with a $150,000 exemption in 2027, rising to $250,000 in 2028, and would limit how cities can spend tax dollars, targeting primary residences while vacation and commercial properties remain taxed. Cities are exploring options like shared services to cope with the anticipated losses.