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Boca Raton studies impact of Florida property tax reform on city budget

Homeowners could save thousands each year if referendum passes in November

WPTV

WPTV reporter Matt Sczesny speaks to Boca Raton Mayor Andy Thomson on June 9, 2026.

By: Matt Sczesny

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BOCA RATON, Fla. — City leaders in Boca Raton were briefed on Tuesday on the potential impact of property tax reform in Florida.

"In two years, it's going to be a $16 million, almost $17 million, annual reduction, and that's significant," Mayor Andy Thompson told WPTV.

WATCH BELOW: Property Tax Reform Could Cut Boca Raton Budget by Nearly $17M Annually

Property Tax Reform Could Cut Boca Raton Budget by Nearly $17M Annually

Deputy City Manager James Zervis made his presentation during a council workshop.

He outlined how two random homes in the city would likely see a reduction of property taxes of around $2,000 a year. However, revenues for the city would drop $8.14 million in the first year and $16.7 million in the second year.

The referendum before voters this November would raise the homestead exemption in 2027 to $150,000 and $250,000 in 2028.

"Assuming that happens, we'll definitely need policy direction on how we bring these different ideas together and deal with the lost revenue issue," Zervis told the council.

The policy direction he's talking about involves exploring other sources of revenue, such as higher fees and other taxes, cuts in services and even raising the millage rate on property taxes.

Thompson said the projected shortfall in a budget of around $250 million is significant, but it can be manageable in Boca Raton.

"My view, at least at the outset, is we're going to take kind of a hodgepodge approach," the mayor said. "We’re not going to do all through one mechanism; there's a bunch of mechanisms to use to apply that, but my sense is we will want to test them all out."