Florida puts property tax overhaul on ballot as local officials sound alarm
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Florida lawmakers voted Tuesday to place a constitutional amendment backed by Gov. Ron DeSantis on November's ballot.
- If passed, it would raise the state's $50,000 homestead exemption to $250,000 over two years.
Why it matters: The amendment would result in a major overhaul of the state's tax system, leaving some local governments starved for revenue as they scramble to maintain services and offset billions of dollars in losses.
Driving the news: Lawmakers left property taxes levied by school districts intact and imposed a five-year waiting period before people who relocate to Florida after Dec. 31 can receive the tax benefit.
- They also scrapped a state fund proposed by the governor that would have helped local governments pay for "core" services.
The big picture: The amendment could cost local governments upward of $4 billion in fiscal year 2027-28 and more than $8 billion in 2028-29.
- Local governments would also face restrictions on how they can spend the remaining property tax revenue, limiting it to areas such as public safety, education, infrastructure and debt obligations.
- Culture and recreation — which covers libraries and parks under current law — is not among the allowable uses.
Between the lines: The amendment also limits how much the taxable value of non-residential properties can increase each year, dropping the cap from 10% to 5% starting Jan. 1, 2027.
- A restriction lawmakers included, in part, to prevent local governments from making up those losses by raising taxes on businesses.
- Taken together, the amendment deals a significant blow to home rule, leaving local governments with less control over their budgets and less latitude to set tax rates.
What they're saying: "Every dollar of property tax revenue already goes to public safety, and it still doesn't fully cover the cost of police and fire services," said Adam Smith, a spokesperson for Tampa Mayor Jane Castor.
- "Every reduction in homestead property taxes means someone else pays more," Smith added.
Even supporters of the measure acknowledge that cuts to certain services are likely.
- "Cuts to parks, libraries and other parts of local government budgets will have to be made, but that is a great tradeoff" for property tax relief, Pinellas County Commissioner Chris Latvala, a Republican, posted on X.
- That could mean those facilities having shorter hours or closing on additional days of the week, Latvala told Axios in an interview. Public safety should be the last category on the chopping block.
- "If you walk into a library they're not jam packed full of people," Latvala told Axios. "If you talk to residents, they want their streets to be safe."
Threat level: Small cities have the most to lose.
- A Florida League of Cities analysis found that 85 cities — including Largo, Gulfport, Temple Terrace, Seminole and Tarpon Springs — wouldn't be able to pay for public safety at the same level even if they cut all other services funded by property taxes, the Tampa Bay Times reported.
- Dunedin officials have already discussed charging homeowners and businesses a fee for fire protection services to offset potential revenue losses.
What's next: The constitutional amendment needs 60% of the vote to pass. If it reaches that threshold, it would take effect on Jan. 1, 2027.