Leon County, which includes Tallahassee, has cast a closer eye on its coffers under a new measure to slash property taxes in the state. This is where things get strange: The measure isn’t even law—yet.

Florida residents will vote on the proposal in November. If it passes, it would dramatically reduce property taxes for many homeowners. The initiative could prove popular in a state where the cost of owning a home has spiraled. So city and county managers across the state are making their plans now for a massive drop in revenue.

“It’s not a haircut, it’s an amputation,” Long said. “You can’t make a historic change to our primary revenue source without also making a historic change to the very role and function of government.”

The proposal is spurring urgent responses from local governments faced with the prospect of plummeting tax revenue. Cities and counties are scrambling to prepare for a potential overhaul of how they pay for all sorts of services, from policing to pothole repairs.

Local officials across the state say the issue is dominating discussion in commission meetings and budget workshops. Among the measures they have taken so far: freezing hiring and capital projects, planning possible service cuts and floating proposals to increase other fees and taxes to offset the shortfall.

In June, Florida’s Republican-led legislature approved a proposed constitutional amendment for the November ballot that had been promoted by GOP Gov. Ron DeSantis. The amendment would expand the so-called homestead exemption—a reduction in the taxable value of a homeowner’s primary residence—which typically results in a lower property-tax payment. It would increase the exemption to $150,000 in 2027, from the current $50,000, and to $250,000 in 2028, with additional adjustments thereafter for inflation.

The Florida State Capitol in Tallahassee, Florida.

Florida’s state legislature approved the proposed constitutional amendment for the November ballot last month. Malcolm Jackson/Bloomberg News

The measure, whose original version lawmakers revised to protect funding for schools, requires the backing of 60% of voters to pass. A recent poll pegged support among the state’s voters at 64%.

Supporters of the amendment, including DeSantis, argue that growing property-tax collections have led to irresponsible spending by local governments. Opponents say the sharp reduction of property taxes would gut funding for key areas, including infrastructure, parks and libraries.

Numerous states have considered proposals to slash property taxes in recent years as homeowners’ tax bills have risen along with home values. The Florida exemptions would be the largest in the U.S., said Jared Walczak, senior fellow at the Tax Foundation, which favors a tax system that is simple and transparent.

In the 2027-28 fiscal year, the Florida changes would reduce property-tax revenue in the state overall by nearly $5 billion, according to the Office of Economic and Demographic Research, a research arm of the legislature. That would increase to $8.8 billion in 2028-29 and $10.8 billion in 2030-31.

The amounts would vary widely for individual counties, with a large one like Miami-Dade projected to lose $304 million in the first year and a small one like Okeechobee expected to lose $3.7 million, according to an analysis by the Florida Association of Counties. Suburban counties with high proportions of homestead properties would face the sharpest exposure, and economically distressed small counties would be the least equipped to respond, the study said.

In Hillsborough County, which includes Tampa, the chief financial administrator presented a report to county commissioners last month detailing the anticipated effects of the ballot measure. A lengthy list of possible responses included eliminating or reducing county services like parks and aging services, closing underused facilities and increasing or adding new assessments, such as a higher fuel tax and more park fees.

The TECO Streetcar in Tampa, Florida.

The streets of downtown Tampa. Zack Wittman for WSJ

In Panama City, in the Florida Panhandle, Mayor Allan Branch sent a letter to other mayors in Bay County last month suggesting they convene a summit to discuss how they might share equipment and services, such as fire patrol and public-works fleet maintenance, thereby reducing costs.

In Pensacola, to the west, Mayor D.C. Reeves said the city already was dealing with repercussions. Financial institutions have called city officials to ask how the city plans to repay bonds backed by property-tax revenue. He said he was entering negotiations with the fire union on its next three-year agreement but was uncertain how to proceed given that the city’s revenue stream could change dramatically over that time.

Amendment backers reject what they consider alarmist responses to the proposal and say local governments should trim bloated spending and focus on core functions.

A street view of Jennifer McKeown-Putney's home at 816 E Belmont Street in Pensacola, Florida.

A residential neighborhood in Pensacola. Jessie Barksdale for WSJ

The situation is especially precarious for the state’s 29 counties designated “fiscally constrained” because they have small property-tax bases, said Casey Cook, chief of legislative affairs at the Florida League of Cities. “Their tax base is getting largely wiped away,” he said. “It takes these communities from being self-reliant to state-dependent.”

In one such county, Wakulla, in Florida’s Big Bend region, property taxes make up more than half of general revenue. In the county commission’s budgeting process, which is currently under way, commissioners are preparing two budgets for next year—one if the amendment passes and one if it doesn’t, said Chairman Ralph Thomas.

Even more dire discussions are taking place in some small, rural cities, said Jeff Brandes, president of Florida Policy Project, a research and policy organization. Some are weighing whether they can continue to function or whether they should be absorbed by the surrounding county.

In Oviedo, near Orlando, Mayor Megan Sladek earlier this year raised a similar, but smaller-scale, question for residents: Should the city proceed with plans for an $18 million police-station expansion, or dissolve the department and rely instead on the county sheriff’s office?

At a city commission workshop in Winter Haven, in central Florida, last week, commissioners grappled with the amendment’s potential fallout. T. Michael Stavres, the city manager, suggested the possibility of introducing a fire fee to help pay for fire services—prompting commissioners to request he prepare a proposal for a study of the issue. He also ran through potential service cuts that commissioners could consider, noting that they would be painful.

“It’s like throwing a pebble into a pond,” Stavres said. “Those ripples go out and people will feel that eventually.”

https://www.wsj.com/us-news/florida-state-property-taxes-f5921237

(http://www.autoadmit.com/thread.php?thread_id=5880710&forum_id=2:#49985721)

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Frank Simo

5 hours ago

Just because a home increased in value doesn't mean a cities costs would increase at the same rate but the state taxes the homeowner like it did

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Michael Baldridge

2 hours ago

And spent the money on an ever expanding government. This is a great way to get them to start looking at their spending and figuring out exactly what their priorities are. Back in the 1970's California's rising home prices, and thus property taxes, were driving older retired people from their forever homes. Their income was fixed and they couldn't keep up with the doubling of their property taxes. Taxes on paper gains. This spawned Prop 13. Unfortunately the California government spending didn't stop.

As for Mr. Tiger's comment nearby, there isn't a lot to stop a government's spending. Yes in FL the mil rate is calculated as how much they will tax your home's value. If they need more and your home's value hasn't gone up, they'll just increase the mil rate. If your home has gone up, faster than the money they say they need, in theory your mil rate will drop, but your taxes won't. They will STILL go up. It's just an added layer of potential manipulation. For example if the government last year wanted $1 B and property values were $100 B, the mil would be 10 mils. If the budget increased 10% to $1.1 B, housing went up to $103 B, the mils would be 10.7 mils. The value of the homes only went up 3% but Government spending went up 10%. Why 10%?

(Edited)

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Matthew Kelly

5 hours ago

Thank God I don’t live there.

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JAMES murray

3 hours ago

Yes, please don't move here. And tell your friends and family not to move here. It is already crowded enough. And we definitely don't need anyone else moving from a mismanaged state trying to change things in FL. Just stay home and elect the socialists.

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JAMES murray

5 hours ago

I have lived in FL for 20 years on the West Coast. I am also a commissioner of one of the barrier island beach towns. For us this should not be a huge issue as we have over 50% non-homesteaded homes. Desantis is correct that our budgets have grown as home values and turnover of homesteaded homes has happened. Overall, this is a good thing for FL.

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Jennifer Adams

4 hours ago

Interesting. I have family who live on a barrier island off of the panhandle, and I've seen the tax vs services debate over the years. Island folks (generally high-income, non-homesteaded properties) start to feel like they are bearing the load for the "mainlanders" (less wealthy, more homesteaded properties) as the primary taxpayers. Then they want to get services...and lo and behold, the money is not coming over the bridge. Why? Because they don't vote in local elections since they are not residents. Yet no one realizes you don't want to kill the golden goose (and island tourism)....

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Y M

4 hours ago

It's amazing how the conversation in FL is about how to decrease taxes and let citizens keep more of their hard earned money, and the issue goes to a vote. Whereas in NYC and other Blue states the conversation is about how to take people's money at even higher and higher levels without a vote.

We are living in the twilight zone.

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Mark Jones

3 hours ago

I simply ask that Democrats remain in their New York twilight zones, as I enjoy my reduced-tax Florida. I recommend "Escape From New York" movie's huge wall around NYC become a NYC-funded construction project.

(Edited)

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David H

4 hours ago

Missing here is information on the growth of property tax revenue, based on values, compared with overall inflation.

If real property taxes have increased due to the housing market, it's reasonable to reduce tax rates accordingly, and revert to the earlier level of services.

(Edited)

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Jennifer Adams

4 hours ago

There has been faster overall growth in property tax than in inflation and population growth. But that is not consistent across the state, and removing so many properties from taxation, especially in rural areas, will likely require state-level tax redistribution. And that has not been figured out! (Surprise!) Plus, there is a way to get around this by doing special assessments and service fees, and increasing the tax on non-homesteaded properties and businesses. Some counties will opt to keep their services and bite the bullet in higher taxes and fees elsewhere. Others will be extremely constrained and not have recourse except to go to the state.

The issue is not about having this debate - it needs to be had. The problem is that this is a rushed-through proposal that violates local home rule (local government is elected by voters, taxes are determined locally, and spending decisions are made locally).

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DAN WOJCIK

5 hours ago

Taxed on what you earn. Taxed on what you buy. Taxed on what you own. Taxed when you die.

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Gary Blom

4 hours ago

Yep, these government workers retire in their 50's with big pensions and generous healthcare benefits.

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Chris H

4 hours ago

Curious how there’s no reporting on the per capita spending by these counties over the last 5, 10 or 15 years.

I suspect that the reason is that many counties in Florida have spent over the rate of inflation on a per capita basis.

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Jennifer Adams

4 hours ago

There is a report by Florida TaxWatch, "2025 How Florida Counties Compare," that includes many of those statistics. In short, pretty much all Florida counties have seen property tax growth (from both homesteaded and non-homesteaded properties) exceed the combined effects of inflation and population growth. So yes, there is room to lower the tax by increasing the exemption value. However, the way this is being done is very rushed and could cause real problems with funding services in some poorer counties.

Side note - if you look at this report, the counties that show the highest tax growth vs (inflation + pop growth) are generally very high-population-growth counties where infrastructure expansion is critical - so not just to support who is there now, but to support who will be coming in the future as new residents.

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Jennifer Adams

5 hours ago

And now DeSantis says he won't actively campaign to pass this legislation...so what gives, Governor? You propose this, your state CFO goes around the state to various counties and cities, claiming that they are spendthrift based on some bizarre back-of-the-envelope math, and now that it's on the ballot, you bail? Looking for a way to hedge your bets once everything hits the fan and you are camped out in your new digs in Lake Wales?

This proposal is bad news all around - it's bad on the revenue impact, and it's even more problematic because it will then force local governments to kowtow to the state government to get funds. Such a great solution... and how will the money be generated? Higher taxes on businesses, higher sales taxes on the poor, taxes on renters,... or we just shut down everything.

Sadly, the FL legislature is a completely useless arm of state government - now Republican members are saying they couldn't put up a fight against this, but now they really hope it gets defeated.... unreal. But that's Florida

As a side note: Florida TaxWatch has released an assessment of the governor's proposal that is fair - yes, we need to consider some increase in the homestead exemption, but tie that to the level of housing cost not some blanket number. Yes, we need to control local government budgets. But the way this is being pushed through is problematic and will likely result in real distortions to who pays for services.

(Edited)

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Frank Lukacovic

2 hours ago

This is guaranteed to backfire on the state. Gutting revenue like this will cause major issues with providing basic services.

They should learn about Sam Brownback and Kansas.

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Jose Ventura

2 hours ago

DeSantis won't be around for the consequences, and he knows it

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Victor Cook

4 hours ago

"“It’s not a haircut, it’s an amputation,” Long said. “You can’t make a historic change to our primary revenue source without also making a historic change to the very role and function of government.”"

Good. Cut them down to the bone. Keep enough funding for the lights and the bare minimum of services.

AI will eventually replace the government bureaucrat and their bloated salaries. Imagine a DMV that uses chatGPT instead of the Zootopia Sloth.

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Henry Crutcher

3 hours ago

That actually sounds terrifying. Whoops! We didn’t mean to give that 10 year old a licence…

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(http://www.autoadmit.com/thread.php?thread_id=5880710&forum_id=2:#49985722)

fucking retarded boomer shit. Florida will be California in 30 years

(http://www.autoadmit.com/thread.php?thread_id=5880710&forum_id=2:#49985735)