A property tax cut plan approved Tuesday could mean significant savings for Florida homeowners — but local leaders warn it may come at a steep cost to city services.
State lawmakers approved a ballot measure that would increase the homestead exemption from $50,000 to $250,000 by 2028. Voters will decide on the proposal in November.
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Gov. Ron DeSantis has championed the plan. "Is there anything else that can be proposed that would actually deliver thousands of dollars in savings every single year to taxpayers?" DeSantis said.
But officials in Palm Beach County say the measure would significantly reduce city revenues. Boca Raton Mayor Andy Thomson said the plan would result in a $16 million loss in revenue for the city.
"It's going to require us to make significant changes and make some very difficult decisions on what kind of services are gonna be provided or what's going to be cut back, or how many folks we're gonna have to lay off. These are serious consequences for local governments." Thomson said.
Thomson said the city had been preparing for the possibility. "The city has been aware of the fact that the legislature and the government have been talking about making changes like this for a while, so we have to run a series of scenarios and identify what kinds of things need to be done," Thomson said.
He said property tax revenues fund essential city services. "We have to spend it on core services," Thomson said. "If people continue to want to have first class, police and fire, water, sewer, sanitation, parks, recreation, all of that — the money is frankly gonna have to come from somewhere," Thomson said.
Palm Beach County Property Appraiser Dorothy Jacks presented the possible financial impacts and expressed concern for smaller cities across the county.
"Many of our 39 cities are homestead-based, and I worry for them because this sort of impact will be significant to them." Jacks said.
Palm Beach County Commissioner Maria Marino also warned residents about what the cuts could mean in practice.
"Please understand that the impact of this means that services to you at home will decrease,” said Marino. “If you want to go to the beach, go ahead, but there won't be any lifeguards there to guard you. Or if you want to go to the park, there's not going to be any maintenance on that park. I think people need to realize there's going to be a huge impact on this."
Thomson said the proposal could also limit how the city directs its property tax revenues.
"At the moment, we're left in the city to figure out for ourselves. How are we going to incorporate these cuts and how much is a can they affect the quality of the service residents are getting?" Thomson said. "But there will be, unfortunately, consequences, potentially to the quality of the services, or the number of folks that we have that provide it as timely as it is."
He said Boca Raton has worked to keep its millage rate low. "We've been really good about making sure the burden on our residents is as low as possible. We didn't necessarily need help from the outside." Thomson said.
Boca Raton's chief financial officer is set to present an analysis following the special session. Thomson said the city will work through the challenges ahead.
"We'll manage it. We're going to do the best we can to accommodate this change." Thomson said. "But it will come with some difficult decisions for us in the future."
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