Why Florida Is Considering Getting Rid of Property Tax

Summary

WSJ What’s News: Episode Summary – "Why Florida Is Considering Getting Rid of Property Tax"

Release Date: March 20, 2025
Host: The Wall Street Journal

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The March 20, 2025 episode of WSJ What’s News, hosted by Alex Osola, delves into a range of pressing topics affecting markets, politics, and everyday life. From the U.S. housing market's unexpected growth to significant policy shifts in Florida and aggressive changes in U.S. immigration enforcement, the episode provides a comprehensive overview of current events shaping the nation.

1. U.S. Housing Market Sees Unexpected Growth

Key Highlights:

• Home Sales Surge: New data from the National Association of Realtors reveals a 4.2% increase in existing home sales in February compared to the previous month, surpassing economists’ expectations. This marks the first month-over-month rise in two months.

• Mortgage Rates Stability: Despite a steady range of 6% to 7% mortgage rates, home sales have risen, indicating resilience in the housing market.

Notable Insights:

• Nicole Friedman, WSJ's US Housing Market Reporter, attributes the growth to homeowners' adaptability and necessity-driven purchases. She states, “[...] the rise despite the fact that mortgage rates haven't changed much” (00:55).

• Hannah Aaron Lang explains the shift in buyer behavior, noting that after years of volatile rates, “a lot more buyers have just realized this is the reality right now” (01:38). She emphasizes that people’s life situations compel them to proceed with purchases despite higher rates.

2. Market Dynamics and the Rise of Dividend Stocks

Key Highlights:

• Market Performance: Recent days have seen U.S. indexes like the Nasdaq, S&P 500, and Dow Jones dip slightly, signaling market uncertainty.

• Investor Shift: In response to market volatility and economic slowdown fears, investors are increasingly turning to dividend-paying stocks as a safer investment avenue.

Notable Insights:

• Tarini Parti from the Your Money Briefing podcast highlights that dividend stocks represent mature, well-established companies. She cites Coca-Cola and Procter & Gamble as examples, stating, “With a dividend, you're getting some form of return on investment in spite of stock price volatility” (03:02).

3. Aggressive U.S. Immigration Enforcement

Key Highlights:

• Increased Scrutiny: U.S. border agents are adopting more stringent measures when processing visa holders and tourists, leading to higher detention rates.

Notable Insights:

• Ariane Campo Flores, WSJ White House Reporter, explains that this shift is a result of an executive order signed by President Trump, aiming for "extreme vetting" for national security (05:29). She notes, “Officers are taking this very seriously and they're not really giving as much leeway as was considered the norm in the past” (05:31).

• Department of Homeland Security asserts that the enforcement aligns with the Trump administration’s stance on immigration, contrasting with prior administrations’ approaches (06:07).

4. President Trump’s Executive Order to Abolish the Department of Education

Key Highlights:

• Executive Action: President Trump has signed an executive order directing the closure of the Department of Education, a move met with significant legal and operational challenges.

Notable Insights:

• The order tasks Education Secretary Linda McMahon with facilitating the department's closure, though legal constraints exist as existing laws prevent unilateral abolition without congressional action (06:40).

• Nicole Friedman highlights the complexities involved, stating, “Under Florida law and the Constitution, you wouldn't be able to eliminate significantly overhaul the property tax system without putting a constitutional amendment on the ballot” (09:59).

5. Tesla Cybertruck Recall

Key Highlights:

• Recall Details: Tesla is recalling over 46,000 Cybertrucks due to a cosmetic issue where window parts can detach, posing potential road hazards.

Notable Insights:

• The National Highway Traffic Safety Administration (NHTSA) assures that there have been no incidents related to the issue and that Tesla will replace the affected parts at no cost (07:00).

6. Florida Lawmakers Consider Eliminating Property Taxes

Key Highlights:

• Financial Strain on Homeowners: Rising home values and increasing property taxes have strained Florida homeowners, particularly those on fixed incomes.

• Legislative Response: In response, Florida lawmakers and the governor are contemplating the elimination of property taxes as a relief measure, although a complete repeal faces significant hurdles.

Notable Insights:

• Nicole Friedman explains that homeowners, especially retirees with limited budgets, are struggling with escalating housing costs. “Home values are driving up the property tax bills for many homeowners” (08:52).

• The feasibility of abolishing property taxes is questioned due to constitutional requirements and the critical role property taxes play in funding local services like schools and emergency services. Friedman notes, “A full repeal is unlikely to happen soon...they help fund a lot of services at the local level” (09:59).

7. Celtics' Ownership Change

Key Highlights:

• Historic Sale: The Boston Celtics, one of the most storied franchises in professional basketball, is set to be sold for $6.1 billion, marking the highest price ever for an American sports team.

• Buyer Details: The ownership group led by William Chisholm, co-founder of Symphony Technology Group, will take over from current owner Wick Grossbeck (10:57).

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Conclusion:

This episode of WSJ What’s News offers an in-depth look at significant developments impacting the U.S. economy, housing market, immigration policies, and more. From the resilience in the housing sector despite high mortgage rates to the ambitious, albeit challenging, efforts to eliminate property taxes in Florida, listeners gain valuable insights into the forces shaping the current landscape. Additionally, the episode touches on notable corporate and sports industry news, ensuring a well-rounded briefing on today’s most impactful stories.

For those seeking to understand the intricacies of these topics without listening to the full podcast, this summary encapsulates the crucial discussions and expert analyses presented by The Wall Street Journal.

Transcript

[Ryan Reynolds]

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[Alex Osola]

Switch upfront payment of $45 for 3 month plan equivalent to $15 per month Required intro rate first 3 months only then full price plan options available, taxes and fees extra. See full terms at Mintmobile Do President Trump signs an executive order seeking to abolish the Education Department. Plus why Florida lawmakers are considering getting rid of property taxes Home values have.

[Nicole Friedman]

Gone up so significantly around the country that people are seeing their property tax bills go up alongside that. And so there's been a real movement to do something about that in a.

[Alex Osola]

Number of states and home sales were up last month. What's behind the rise? It's Thursday, March 20th. I'm Alex Osola for the Wall Street Journal. This is the PM edition of what's News, the top headlines and business stories that move the world today. New data out today from the national association of RealTors shows that U.S. existing home sales rose 4.2% in February from the prior month. That was far better than economists expected and was the first month over month increase in two months. Nicole Friedman, who covers the US Housing market for the Journal, explains the rise despite the fact that mortgage rates haven't changed much.

[Hannah Aaron Lang]

A few years ago when rates shot up from 3% to higher than 6%, that really, really shocked the market and buyers couldn't let go of what they could have afforded with 3% rates compared to what they could afford with rates at 6 or 7%. It was such a dramatic increase that really spooked people. But now it's been a couple of years and rates have been hovering in this 6 to 7% range. And so a lot more buyers have just realized this is the reality right now. And because they have their own life situations, their own needs to move, some people are just saying, well, that's where mortgage rates are and I have to bite the bullet and make a purchase anyway.

[Alex Osola]

Well, yesterday's post Fed rally in the markets seems to have sputtered as US Indexes ended the day in the red. The Nasdaq fell about 0.3%, the S&P 500 dipped about 0.2% and the Dow fell less than a tenth of a percent. With the markets wavering and the threat of a slowing economy, some investors are turning to a potentially safer option to dividend stocks. These are shares in companies that offer relatively hefty cash payouts, and so far this year they're beating the broader market. Hannah Aaron Lang, who covers markets for the Journal, told our your Money Briefing podcast why dividend stocks are so appealing right now.

[Tarini Parti]

Dividend paying companies, they tend to be these more mature, well established companies who are perhaps not so concerned with growing at such a rapid pace because they're not plugging all of the profits they earn right back into their growth efforts. For example, they've been around a while many of the largest dividend stocks. The allure is the stability of these firms. So think like your Coca Cola, your Procter and Gamble. With a dividend, you're getting some form of return on investment in spite of stock price volatility. So I would say this is considered a safer, maybe more boring slice of the stock market. But this is a type of stock that looked increasingly alluring to investors, given what we've seen in 2025 so far.

[Alex Osola]

To hear more from Hannah, listen to tomorrow's episode of youf Money Briefing. Coming up, why US Border agents are taking a more aggressive approach towards visa holders. That's after the break.

[Ryan Reynolds]

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[Alex Osola]

Immigration officers are employing more aggressive tactics with immigrants and tourists trying to enter the United States. For more on this approach and its impact, I'm joined by WSJ White House reporter Tarini Parti Srini. What's new about the way border agents are approaching travelers?

[Ariane Campo Flores]

Border agents at airports and at land ports of entry are scrutinizing visas. They are frequently detaining tourists. They are being pretty aggressive in the way they question people who are coming through. This is something that we have not seen before, is what we heard from lawyers and from former immigration officials. In the past, if there were questions about someone's visa, they would be flagged send for more questioning. But usually, usually they would be asked to come back with the proper paperwork or they would be held for a little while. But what we're seeing now is long term detention.

[Alex Osola]

I'm curious why this is happening now.

[Ariane Campo Flores]

The Trump administration, when the president first came into office, signed an executive order that called for extreme vetting of people entering the United States. The president has said that this needs to be done for national security purposes. So what we're seeing is U.S. customs and Border Patrol. That's the agency that deals with people who are entering the country. Officers there are taking this very seriously and they're not really giving as much leeway as was considered the norm in the past.

[Alex Osola]

Did you get any response from any of the other departments working on this?

[Ariane Campo Flores]

We heard from the Department of Homeland Security who said that the Trump administration is enforcing immigration laws and they criticized previous administrations for not doing so. We've also heard from U.S. customs and Border Patrol about the individual cases that we went through, and they've said that if statues or visa terms are violated, travelers may be subject to detention and removal.

[Alex Osola]

That was WSJ White House reporter Tarini Parti. Thank you, Tarini.

[Ariane Campo Flores]

Thanks so much for having me.

[Alex Osola]

In other news, President Trump has signed a much anticipated executive order that would begin dismantling the federal Department of Education. The order directs education secretary Linda McMahon to facilitate the closure of the agency to the maximum extent possible and permitted by the law. McMahon will face a number of complications in closing the department, a task she has called its final mission. Existing law doesn't allow the president to unilaterally close a department such as Education that has been established by Congress. If you're wondering about the implications and possible challenges to the president's moves to abolish the Education Department, listen to our recent episode of what's New Sunday. Trump wants to abolish the Education Department. What comes next? We'll put a link to that episode in our show notes. The Taliban has released American George Glesman, ending his two year detainment. It's a diplomatic victory for President Trump that could reshape U.S. relations with Afghanistan. U.S. officials said the Taliban agreed to send Glesman back to the US in exchange for improved relations with Washington, forgoing its previous demand that America hand over imprisoned Taliban members. Glesman, a mechanic for Delta Airlines, was touring Afghanistan when the Taliban seized him in December 2022. Tesla is recalling most cybertrucks, more than 46,000 vehicles, the National Highway Traffic Safety Administration said a cosmetic part over the left and right windows can detach from the vehicle, which the agency said could create a road hazard for motorists. The agency said Tesla isn't aware of any collisions, fatalities or injuries related to the issue and that Tesla will replace the parts free of charge. This is the eighth recall issued on the cybertruck, which Tesla first released in 2023. In Florida, it's becoming very, very expensive to own a home. With home prices rising and property taxes soaring, homeowners are feeling the strain. Florida's leaders are considering a far reaching remedy for that, ditching property taxes. A full repeal is unlikely to happen soon, but the idea is gaining political traction. WSJ economics reporter Ariane Campo Flores is here to tell us more. Ariane, I mentioned the financial strain that homeowners are under in Florida. Why are lawmakers now looking to get rid of property taxes?

[Nicole Friedman]

The reason is that there's been years now of building homeownership costs in Florida that have reached a point where a lot of homeowners are really clamoring for some sort of action, some sort of relief. Home values are going up. That's driving up the property tax bills for many homeowners. Also, home insurance premiums have been going up significantly in Florida, adding to the bill for homeowners. So lawmakers and the governor are responding to this sense that homeownership costs have gotten out of control and that it's really affecting people's ability to either remain in the state or to relocate there.

[Alex Osola]

Who's feeling that strain?

[Nicole Friedman]

Most these property tax increases have really affected fixed income households. A lot of them are retirees. They have finite budgets and they haven't necessarily factored in or anticipated a real significant boost in what their housing costs are.

[Alex Osola]

So you write that a full repeal of property taxes is unlikely. Why is that?

[Nicole Friedman]

Well, it's a big undertaking. Under Florida law and the Constitution, you wouldn't be able to eliminate significantly overhaul the property tax system without putting a constitutional amendment on the ballot for voters to decide on. But then there's also just the sort of the reality of what it means to entirely get rid of property taxes because those help fund a lot of services at the local level. Local governments really depend on property taxes to fund things like the school system and police and firefighters and parks. Some policy analysts have said that the way to make up that revenue would be to significantly increase the sales tax. And that perhaps is not something that residents are going to be very happy with.

[Alex Osola]

That was WSJ economics reporter Ariane Campo Flores. Thank you, Ariane.

[Nicole Friedman]

Thank you. My pleasure.

[Alex Osola]

And finally, are you into basketball? Celtics fan? Maybe. Well, your favorite team and some might argue the most storied franchise in the history of professional basketball is about to change hands. Today, a group led by Wick Grossbeck, the Celtics current owner, announced an agreement to sell the team to a group led by William Chisholm, co founder of the private equity firm Symphony Technology Group. The deal values the Celtics at $6.1 billion, the highest price paid for a team in the history of American sports. And sorry, football fans, that beats the $6.5 billion sale of the NFL's Washington Commanders in 2023. And that's what's news for this Thursday afternoon. Today's show was produced by Anthony Banci and Pierre Bienname, with supervising producer Michael Cosmitis. I'm Alex Osola for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening.