Property tax amendment rattles Rays stadium deal
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Rendering: Courtesy of the Tampa Bay Rays
The challenges of getting a Rays stadium deal through keep mounting, with the possibility of property tax reform in November throwing a wrench into already fraught negotiations.
Why it matters: Hillsborough County and the city of Tampa are being asked to commit nearly $1 billion toward the construction of a new ballpark for the Rays, even though they risk losing a major revenue source.
Driving the news: The Legislature voted last week to place a constitutional amendment on the ballot that — if approved by 60% of voters — would raise the state's $50,000 homestead exemption to $250,000 over two years.
- The increased exemption could cost Hillsborough County more than $461 million a year by fiscal year 2028-29, according to the Florida Association of Counties, and leave it scrambling to maintain essential services.
- Local governments would also face new limits on how they can spend their remaining property tax revenue, potentially forcing them to rely on other revenue streams to fund services such as libraries and parks.
When asked whether the amendment should discourage local officials from approving the Rays deal, Gov. Ron DeSantis said that if anything it gives them "more of a reason" to follow through on the new ballpark.
- The governor pointed to the mixed-use development the Rays plan to build alongside the stadium, which, as a commercial property, would remain taxable, adding that it would "expand their tax base."
Reality check: The amendment 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.
- That means property tax revenue from the mixed-use development, where analysts say the "majority of the fiscal benefits" from the stadium district would be realized, would shrink if the amendment is passed.
- And that's when — and if — the mixed-use development is even built. The non-binding memorandum of understanding approved by Hillsborough County and the city of Tampa provides no timeline or assurances.
Friction point: Hillsborough County also has obligations to its existing stadiums.
- The Tampa Sports Authority sent a letter Tuesday urging local officials to prioritize the renovations needed at Raymond James Stadium, which reportedly total $1 billion.
The latest: Alan Clendenin, chairperson of the Tampa City Council, is seeking to delay a vote by the city's Community Redevelopment Agency (CRA) on entering into a non-binding memorandum of understanding with the Rays.
- The CRA would contribute $100 million toward the new stadium through bonds backed by property taxes, according to the memorandum.
- To give everyone time to digest the amendment's impact, Clendenin wants to punt the vote from this Thursday to July 23.