The Florida Legislature has passed Governor DeSantis’ tax cut proposal that would have major impact on local governments. The elimination/reduction of property taxes would have major implications on local budget reductions.
The governor put his plan in the hands of Florida lawmakers during the special session. After making some tweaks, the House passed the Save Our Homes amendment proposal 75-26, and the Senate passed it 30-9. Before the bills were tweaked, local governments were projected to lose $8.4 billion in revenue per year, with firefighters warning of up to 25% cuts. Moving forward, it will be up to Florida voters to decide. The amendment needs 60% approval from voters to go into effect.
If voters choose the amendment, it will revise limitations on annual assessment increases for specified real property, increase homestead exemptions, provide limitations on the use of ad valorem taxes levied by counties and provide an effective date.
Under the measure, the current $50,000 property tax exemption would increase to $150,000 in 2027 and to $250,000 in 2028, however it will not apply to school districts’ levies. The bill would also lower the current 10% cap on annual assessment increases for non-homestead properties, which include vacation, investment homes, apartments and commercial properties. Currently the homestead exemption structure of a home with an assessed value of $350,000 that qualifies for the exemption pays roughly $5,300 in property taxes. Under the governor’s proposal, those taxes would be reduced to approximately $1,700.
It would also limit the use of property taxes to core services that include fire, police, stormwater, education, infrastructure and the constitutional offices, such as supervisors of elections, property appraisers and tax collectors. Jacksonville’s city budget funds the Jacksonville Sheriff’s Office, Jacksonville Fire and Rescue and other city departments, economic development incentives, youth and workforce development projects, nonprofit grants among other council and mayoral priorities.
The plan is drawing concern from some residents and local leaders who wonder where the money will come from with fewer resources for city provided services that are most taken for granted.
The Jacksonville Mayor’s Office shared the following statement:
“The homestead exemption bill currently being debated in the Florida Legislature would have a significant impact on the city’s budget. We are closely monitoring progress of the proposal, which would still need to be approved by voters with a 60% threshold in the November election. As it stands now, property tax revenue barely covers Jacksonville’s police and fire costs. Eliminating or dramatically changing this funding source will hurt public safety efforts, as well as core services that improve quality of life and affordability.”
The mayor told Jacksonville Today, that her administration plans to reach out to Duval County residents directly to show how a $300 million revenue cut could affect local services.