This Could Make Florida Real Estate EXPLODE

🔥 What if Florida eliminated property taxes completely?

In this episode of the Home Guys Podcast, we break down a bold legislative proposal that could make Florida the first state with NO income tax AND NO property tax.

Here’s what you need to know 👇

🏡 The Big Idea
Lawmakers are exploring a plan to eliminate property taxes entirely—something that would drastically change the cost of homeownership.

⚖️ How It Could Happen
Several options are on the table:
• A gradual 10-year phase-out
• Immediate elimination
• Keeping only the portion that funds schools

💰 Replacing the Revenue
To make up for lost tax dollars, proposals include:
• Increasing sales tax by 1–2% (leveraging tourism)
• Adding a significant property transfer tax when homes are sold

📈 What It Means for Homeowners
Lower carrying costs could stabilize—or even boost—property values across Florida.

🏠 Who Benefits Most?
There’s talk that tax elimination may apply only to homesteaded properties, not investment properties.

🌆 Meanwhile in Minneapolis...
We also compare how stricter regulations and long eviction timelines are making Minneapolis less attractive for real estate investors.

—

Is this a game-changing move for Florida—or a risky experiment? 🤔
Watch the full episode and decide for yourself.

👍 Like, 💬 comment, and 🔔 subscribe for more real estate insights and market breakdowns.

📲 Interested in learning more about licensing or mentorship?
Connect with our team here: homeguys.com/yt

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Transcript

SPEAKER_00 0:10

There's a lot of problems with the politics about this. I think Florida's got great politics. This is a very no nonsense guy. I don't think it was just him when I first heard about it like a year ago. It was like, I just figured it was like some sort of a marketing thing. Like people just say things don't really like just saying that to get attention. It's for real, but they're actually voting on it now. A lot of uh politicians are very serious about getting this done. There's different versions of it of how to do it.

SPEAKER_01 0:33

How's going on with taxes in uh Florida? How are they gonna make their money?

SPEAKER_00 0:36

We're not too worried about that.

SPEAKER_01 0:39

Alright, welcome back to the uh James and Jaden podcast where we talk about real estate and whatever else comes up. Um today. I I'll be honest with you, I got one question to ask Jaden, and um I think we're gonna talk about whatever else comes up. So that's uh that's kind of where we're at today. Um Jaden obviously is in the studio. Welcome, Jaden.

SPEAKER_00 0:57

Glad to be here. I didn't ask you that if you could be here enough. I had to wear pants because it's kind of cold out. I know. I'm glad you wore pants finally. It's very awkward when you Well we have this fabric over the table, so you would never know.

SPEAKER_01 1:09

Yes, right. Um, yes, Jaden did show up uh to Minnesota wearing shorts and did not bring any pants. He does keep a pair of shoes at my house, so I think he forgot about that. And then all of a sudden I reminded him. He's like, Oh, cool. So those shoes have to stay at my house. Yeah. I was gonna wear the flip-flops in the snow today, but he was gonna try. He was gonna try only because he doesn't want to be wrong. He's like, I'm fine, James. I'm fine. Better to wear the sneakers. I swear. So um, yeah, see, here we go. We're talking about absolutely nothing on our on our real estate podcast. We talk about real estate and whatever else comes up. Um, today I really have one question. I just saw something, and I'm like, James gotta be super happy about this. What the hell's going on with taxes in uh in Florida? I hear they're how are they gonna make their money?

SPEAKER_00 1:59

I I we're not too worried about that, apparently. They'll figure that part out, I think. So you're so hold on, let me reset. No property tax property taxes are gonna go.

SPEAKER_01 2:08

You don't pay employment tax, right?

SPEAKER_00 2:10

All right, we already don't pay income tax. Income tax. There's no income tax in Florida.

SPEAKER_01 2:14

Okay.

SPEAKER_00 2:14

Yeah. Dude, where's your money coming from? Uh Disney World. Apparently. I just got I gotta say, I love uh Governor DeSantis. That guy is awesome. Um DeSantis, I love you. Um I the I've you know we didn't move to Florida for the politics, but I've been very happy with the politics since we've been there.

SPEAKER_01 2:38

Well, look where you came from.

SPEAKER_00 2:39

Um, I came from Minnesota obviously.

SPEAKER_01 2:43

You could have gone to any other state right now, our state that we've got. I had no idea. Four or five years ago. I had no idea. Um under I sorry, I'm getting off topic here a little bit, but I love my state, but there's been a lot of crap that's it's uh there's a lot of problems with the politics in Minnesota.

SPEAKER_00 2:58

We don't need to talk about that too much, but obviously, yeah. Um I think Florida's got great politics. Um DeSantis is a very no nonsense uh guy, and I don't think it was just him, but he kind of spearheaded this idea of getting rid of property taxes for Florida. When I first heard about it like a year ago, I was like, I just figured it was like some sort of a marketing thing, like something people just say to it. The re-election thing, maybe I was like, I think they're just saying that to get attention, but like it's for real. Like they're actually voting on it now. Um, and it's a lot of uh politicians are very serious about getting this done. So now they're just talking about like like there's different versions of it of how to do it. Like there's a 10-year phase out, there's an instant phase out, there's there's another bill that says we're gonna get rid of all property taxes to zero. Um, then there's some also versions like only for homesteaded properties versus if you own a rental property, should you have property taxes or not? So there's a lot of these different like nuances of who's not paying property taxes and who is. And then the other one was um, do you get rid of all the property tax in the house, or do you just get rid of everything except for the school portion and leave the school portion there? Because some people are saying, well, the schools are gonna need those taxes, so we don't want to get rid of that.

SPEAKER_01 4:05

Okay, I'm gonna ask it one more time and then I'm gonna ask Mr. Google where the hell is that money? How are you displacing that money that you're getting?

SPEAKER_00 4:14

The other stuff they're talking about is how to come up with the money. So they have to pair the two, right? Because the money has to come from somewhere. So they're talking about raising uh the sales tax by a point or two. So the sales tax would go from like seven to eight percent.

SPEAKER_01 4:26

So it's more of a user tax.

SPEAKER_00 4:28

Yeah, so if you buy stuff, you'll pay an extra percent. If the thought was like, well, all these tourists that come down to Florida that spend money, they'll just pay an extra percent. And the people that live there would too, obviously. But I'm like, if you could replace property taxes with one percent increase in sales tax, let's do that. Like the everyone will ever I think everyone's on board with that.

SPEAKER_01 4:45

Like, let's do that. Right. I again I don't know the numbers.

SPEAKER_00 4:48

Um, I'm sure we could probably I don't know the numbers either, but when I first heard about it, I'm like, there's no way they could possibly do this. Like, there wouldn't be enough money, but it seems like they're they're gonna figure some version of it will get figured out, it seems. And there's a lot of support for in the um the state and the and in the government.

SPEAKER_01 5:03

So Okay, I g I have to just ask. I'm gonna ask where is the property tax money coming from if we get rid of the property tax?

SPEAKER_00 5:35

The main proposal I've heard is increasing sales tax. Well the other the other one was, so that's one of them. Another one is they're gonna they want to put on a um a property transfer fee that's pretty substantial. So like when you sell your property, there's like a recapture essentially of like a pretty large, like 5% of the sales price or something like that. Which really doesn't it doesn't make any sense. So you just didn't pay property taxes for 10 years, and when you sold your property, they just collected all the property taxes when you sold it. So it really didn't get rid of property taxes.

SPEAKER_01 6:08

No, you're just pushing the cancer.

SPEAKER_00 6:12

So I don't think people like that concept. It really didn't so most people that are pushing for this are pushing for a complete elimination of property taxes to zero and not to be replaced with something like a transfer tax because it that just doesn't really change like they just want no property taxes. And the reason for this is it's kind of a freedom thing because if you have property tax, who really owns your property? Right, the county does, you don't own it. Because if how do you own your property if you have to pay if you stop paying the county, they're gonna take your property, so you really don't own it. That's really the crux of what the problem is. And in Florida, people want to own their property and not pay taxes on it. And I agree with that. So I I hope they get it done. I think they're gonna get some version of it done. I hope it's the full elimination.

SPEAKER_01 6:54

I'm not sure if it's I just wish I knew the what the numbers were. Is like is that much sales tax and jumping up a penny. You would think other states would do the same thing if if it made sense.

SPEAKER_00 7:07

I don't, I mean, I think because of the tourism industry in Florida being so large, so that's why it makes sense. They can generate a lot of money off of it. I don't know, I haven't looked at the numbers either. I'm sure that they're digging into that, whether it would work or not. The other thing they're that's driving this is that in Florida the property value has doubled and tripled in a couple years over COVID. And so what happened was these count these county taxes doubled and tripled in like a year or two. So if you were paying$5,000, now you're paying$12,000. And like you're in the same house in the same county with the same schools that you had three years ago, but your taxes are almost three times as high. What is where's that money going? And that's that's the crux of this is like what is the money being used for? It didn't just get three times more expensive to run these counties.

SPEAKER_01 7:48

Well, right, but that tells me they should have a surplus then.

SPEAKER_00 7:51

Or they're just wasting the money, which is more likely the case. Oh, yeah. So I think that's at the state government level, they're like, this is it's it's wasteful spending. They're just wasting money. Why should your taxes triple just because your value of your house tripled? It didn't cost more to run the county. You know, it doesn't make any sense.

SPEAKER_01 8:07

Well, I mean, obviously you have inflation and you um but it wasn't it wasn't it?

SPEAKER_00 8:11

But it wasn't that yeah, right, right, right. You're talking 10% or 15%, not 300%.

unknown 8:15

Yeah.

SPEAKER_00 8:16

So yeah, I think it's I think if it happens in Florida, I think it will happen. I think you'll start to see other states do it too. It makes a ton of sense. At least the red states will do it, like Texas will probably do it. So it's pretty exciting. But I I think that if this happens in some version, like the property values are are like slowly declining in Florida because they went so high during COVID. If they if they actually get rid of property taxes, I think it would probably stop the property price declines. Because now you have like some of the houses that in our area, like$10,000 a year in property taxes that just goes away, that property is now worth more money because it's costing you less to own it. And now you actually truly own it too. You're not paying taxes to own it. God, there's so many things there. So it could affect it could really affect the values of properties, I think. I don't know that they would shoot up a lot. I didn't even think of that. That's a big deal. I mean, some of these higher value houses, the taxes are very high.

SPEAKER_01 9:09

I'm more now curious about the surplus that you probably should have if if it's you're literally making all these everybody's taxes went up, and then all of a sudden you're gonna the delete it.

SPEAKER_00 9:19

But have you ever heard of a government having extra money around? They make sure they spend it every year, right? That's how governments work.

SPEAKER_01 9:25

Well, right, and that was the one thing I always hated. Um, I was on the fire department, and our chief would come around on uh December 1st and goes, Hey guys, what do we want? Because uh we still have$20,000 in the budget. If we don't use it this year, you lose it, we lose it for next year. That's government. I'm like, why couldn't you just say, hey, we didn't use it, push it over to the the next year, but that's not the way it works.

SPEAKER_00 9:47

No, no, they gotta spend it. So they just inflate their, they just inflate, they hire more staff, they spend more money, they just find ways to spend the money, whether it's effective or not, you know, probably not. So it really does need to get fixed because it's it's a ridiculous system. So I'm really glad that something's been done about it. And really happy to be the state that you know has common sense and does things that make sense. You know. Yeah, it is nice. I didn't know it was I didn't know it was possible. Right? It is possible. It's possible. Yeah, it's um so yeah, if you're if you're in the market for investing in properties, you know, this could be a nice little boost for investment. Now, I they don't I don't know, they may not apply this to investment properties. So if they just say this is only for homestead residential properties, it's not going to help you with your investment property. So that's and my guess is they will only apply to homestead residential properties.

SPEAKER_01 10:38

Well, again, you have some states that um are automatically gonna be tenant, go towards the tenant versus the landlord. And we're one of those like that, yeah. Where you there I don't want to dive into this, but I'm just going to a little bit. Like they're applying for two more months extra for eviction notices in Minneapolis. In Minneapolis, because of what happened.

SPEAKER_00 11:02

Because of because of ice or what was.

SPEAKER_01 11:04

Yeah, because of ice and there was.

SPEAKER_00 11:05

Yeah, I heard I read about that. I'm like, it's like COVID. Like, we're having COVID over again? What are we doing here?

SPEAKER_01 11:10

And again, I get it. I I wanna I all kinds of people love everybody. Um, but we can't be giving crap away all the time. I'm sorry.

SPEAKER_00 11:19

I mean, I when I saw that article, I'm like, no one's gonna buy an investment property in Minneapolis.

SPEAKER_01 11:24

You're not gonna no way, and that's what's that's what's buzzkilling everything.

SPEAKER_00 11:28

Um we're trying to sell some duplexes in Minneapolis right now, and they're not selling.

SPEAKER_01 11:32

And they're not selling.

SPEAKER_00 11:33

Who wants to get involved? Who wants to get into a city that you can't even control your own property?

SPEAKER_01 11:36

Yeah, we are um on the outskirts right now. People are fighting for the suburbs. No one wants the Minneapolis and St.

unknown 11:45

Paul properties.

SPEAKER_00 11:46

Yeah, it's just it just keeps on getting worse. And I the Minneapolis City government is uh run by socialists, and I'm not just saying that. I mean, it's look it up, it's the truth. So the socialist party controls the city of Minneapolis.

SPEAKER_01 11:59

It's the same thing we have um issues in um in St. Paul. We have a friend, uh good buddy, who the government or the government, the city is always on top of them because hey, you gotta fix your stoop, you gotta bring it, hey, you're the investor, you have the money, you gotta bring this 1880 home back to uh 2026. I'm like, no, no, no, you don't. Um, but they're they're kind of forcing us to to fix things that you're still buying a hundred-year-old home. I guess the point being is is it's you gotta treat everybody fair. Yeah, and they're they're not treating the the so-called investors.

SPEAKER_00 12:39

Well, it just drives the investors out of the city.

SPEAKER_01 12:40

Well, but I don't know if they realize this, Jaden. And they have to, but it's investors that are pulling the city back together. We're the ones that are the ones improving the properties, they're improving the properties.

SPEAKER_00 12:51

They're driving them out. Um so who's gonna who's gonna fix the properties up? You know?

SPEAKER_01 12:56

I I I don't know. I that's that that's the problem. Again, sorry guys, we didn't mean to go down uh uh completely, you know. It it's it's it's talking about taxes, it's talking about um our our government, whatever government you're in. Um doesn't always fare towards the investor because they think that the investor automatically has the money. Guys, I know way more investors that don't have a dime, but they're they're it's the long play, it's not the money right now, it's the money setting themselves up in 20 years.

SPEAKER_00 13:28

Yeah, just like farmers that are paper rich, you know.

SPEAKER_01 13:32

Right. And don't ever let a farmer tell you they're broke. Because they might be broke at the minute or at the second, but it's the same thing. They're wealthy. They they are, you know, and and again, uh it's um I don't know. I I love that image for farmers because you know darn well they actually they actually had money. So sorry to get back uh back on topic here. Um uh taxes.

SPEAKER_00 13:56

So yeah, I think you know, it looks like Florida's gonna get rid of taxes. I think it's gonna be great for homeowners. Um my guess is it won't affect investors. So we'll see if it does or not.

SPEAKER_01 14:05

But well, I think it could it could because um we again we need to probably dive into it a little bit more. Um, what kind of uh you know if it's an investor and you're not homestead, are you gonna have to pay taxes?

SPEAKER_00 14:18

Yeah, I think you will still.

SPEAKER_01 14:19

Yeah. I mean, that's why to me I figured it's for it should be for the residents. Okay, it's a classic you. You live there, you you know, you work there, you do different jobs there, your kids go to school there. Yes.

SPEAKER_00 14:33

You should be able to own your own home and not pay taxes on it.

SPEAKER_01 14:36

Um you should still be able to own your own home and have a rental property, but I get it. At least maybe it can be a half the field.

SPEAKER_00 14:43

Well, I get like the taxes on uh rental property, that makes some sense to me because you're generating revenue, you're generating income off of that. It's kind of another form of income tax. You know, property tax on a rental is like it's a business. Oh yeah, yeah, yeah. So it's like a way of looking at it.

SPEAKER_01 14:55

Yep.

SPEAKER_00 14:55

I don't have it as long as the you can still pencil the numbers out and still make it work, you're gonna just include your property taxes in your equations for cash flow, right? And um, so I don't really have a problem with that. But the uh if you're your own personal home, you should be able to live there and not pay taxes. I've felt like that for years. I just didn't think it was possible.

SPEAKER_01 15:14

So where else is there where you don't pay state income tax in Wyoming?

SPEAKER_00 15:19

Uh state income tax?

SPEAKER_01 15:20

Yeah.

SPEAKER_00 15:20

There's a lot of tax uh states without taxes.

SPEAKER_01 15:22

Oh really?

SPEAKER_00 15:22

Tennessee, I don't think, has income tax, Texas doesn't. Well, we're also known as the land of 10,000 taxes. Yeah, Minnesota is very high tax. Yeah. I think there's like 10 or 15 states that have no income tax. Okay. There's quite a few of them. Yeah. But Florida would be the first with no property tax and no income tax. Yeah. Pretty exciting.

SPEAKER_01 15:41

Yeah.

SPEAKER_00 15:42

Weird that Florida was actually actually beat Texas on doing some like that.

SPEAKER_01 15:47

Usually Texas is the Yeah, but I think Texas is Texas is obviously it's more Republican, but it's uh there's a there's a wide um I think they still got a lot of Democrats, too. I mean they still have to.

SPEAKER_00 16:02

I mean well, Florida has some Democrats.

SPEAKER_01 16:04

Well, yeah, yeah.

SPEAKER_00 16:05

I'm sure there's a couple down there. Hey, and we're not getting mad at Democrats, okay?

SPEAKER_01 16:08

We can all have a conversation.

unknown 16:10

Yeah.

SPEAKER_00 16:10

It's all good. I like to think of myself as independent, but I definitely lean a little bit more red than blue. Right.

SPEAKER_01 16:16

I it's more of a purple ish color. You moved it over.

SPEAKER_00 16:21

I just like to think that I'm a common sense person.

SPEAKER_01 16:24

Right. Yeah. Well, like I think I I was telling I think I was telling you this. Um my daughter was doing some uh sales training. And she's like, Yeah, I'm really getting tired of watching this. This is this is all just common sense. And I I went up to her and I'm like, um, Patty, the problem is that most people don't have it. And you have it, that is why you're going, This is boring.

SPEAKER_00 16:50

Right.

SPEAKER_01 16:51

You know, this is meant to go for everybody, and everybody under you know, can watch the video, but you get it. Not everybody has common sense. No. And she's like, really? Like most of the world is uh learn it. Yeah, yeah. I don't say is it something you learn or is it something that you just get when you're I think it's something you I don't know. I think it's something you figure out as you go. You know, like that shouldn't be that hard. Yeah. So well hey, you're only in town for um I guess less than 24 hours. I'm gonna have you back at the airport here tomorrow in 23 hours, not that I have a timer at all or anything, and trying to figure out when you're leaving. Just wait to boot me out. Yeah, whatever. Um, so yeah, no, thanks for coming, Jaden. I know you you flew up here. Um and today's my birthday, so let's just, you know, happy birthday, me. Yay. Um, it's yeah, 51 years old. It's hard to believe, but you know what? This birthday's going already going better than my 50th. It was hard turning 50. I don't know why. Yeah, that would be hard. It's I'll tell you in six years. You'll be there and I'll be the first one. Hey buddy, how you feeling? How you doing? You know, it's uh but no, thanks for uh thanks for coming up. Thanks for hanging out on uh on the birthday. Um I don't know when the next time you'll be up here. Um but uh yeah, it's always great to have you here and go get to the studio and start and start talking. So Brady, you got any other things that we uh should probably chat chat about? Or are you are you you're golden?

unknown 18:28

I'm gonna hear you.

SPEAKER_01 18:30

All right. So hey guys, um again, thanks for uh like our uh product or like our whatever this podcast. Thank you. I don't know. I am I'm mumbling for whatever reason. Um thanks for listening. We really do appreciate it. Um I hope it's easy to listen to. I hope we uh we come across the way we're we're supposed to come across. Um, if you guys have any questions, any concerns, um let's let's get you on a phone call. Let's talk about it, let's figure out um how we can help you be successful, also. Yep. So just remember we made the mistakes. So you don't have to. Thanks, guys.