Now that proposed revisions to Florida’s homestead exemption are going before voters, local officials and institutions are warning those changes could hamper financing for local projects.
Several municipal leaders, including some county tax collectors and property appraisers, are concerned that if the referendum is approved the reduction in revenues could complicate the repayment of municipal bonds.
The concerns about the future of the stability of municipal bonds in Florida are getting so intense, daily trade newspaper The Bond Buyer has increased coverage the Sunshine State situation.
A June 5 Bond Buyer report tapped Pasco County Tax Collector Mike Fasano who said the homestead proposal could cause problems for outstanding bonds in that county.
“I am quite concerned about those bonds,” Fasano said in the report.
In Lee County, Property Appraiser Matt Caldwell suggested the loss of tax revenue due to the homestead revisions could cause pain if implemented too quickly.
“I think it would make a lot more sense to phase it in over, say, the next decade,” Caldwell said in a Gulf Coast News report.
The Florida Legislature voted last week to take the measure to the voters in a referendum on the Nov. 3 General Election ballot. If approved by at least 60% of voters, the constitutional amendment would raise homestead exemptions for those who own primary residences in the state by the end of this year to $150,000 in 2027 and $250,000 in 2028, and tie further increases in the exemption to the Consumer Price Index.
While many lawmakers and Gov. Ron DeSantis are behind it, organizations such as Florida TaxWatch and the Florida Policy Institute have expressed hesitation.
Meanwhile, UBS wealth management issued an analysis of the homestead plan and Yahoo Finance reported the institution’s review challenged some of DeSantis’ claims. A central promise was it would eliminate property taxes for 60% of residents who own homes and UBS used the Florida Office of Economic and Demographic Research as a benchmark for its review.
“But the state’s own data tells a more modest story: only about 28% of homesteaded properties in Florida are valued at $250,000 or less. At the $500,000 threshold — again, where DeSantis promised 92% coverage — Florida’s own data pegs the share at just 75% to 80%,” the Yahoo report stated.
–Drew Dixon, Florida Politics
Dave says
Who cares about the homeowner?? NOT the local governments!! what do the local governments care about?? MONEY AND RAISING TAXES!!!!
Laurel says
Dave: Republicans are again tapping into anger. Their favorite emotion. That, and fear. They love it.
Look at the long run. What exactly is the plan to resolve the deficit? Simply firing people doesn’t work. Simply cutting salaries doesn’t work. You want to punish, but who will get punished in the long run? Do you believe you are really attacking government, when government is tossing you the carrot? DeSantis knows what he is doing, and it ain’t in your favor.
Step back for a moment, and ask “What is the end plan?” After all, even if there is a reduction in local government, there will still be work to be done. How will it be paid for? There will be a bill. Not only that, but unknown rules, unknown reactions, and unknown effects. This is not a solid act.
What of home rule? Home rule allows local government to make local decisions. Government works for you. Once you understand that, your react differently, and the game changes.
In order for you to think past the enticement, you need to let go of your anger. When you are doused with anger generating responses, you are being manipulated. That is the actual goal here.
DaleL says
I’ve looked at my 2025 property tax bill. I believe that with a $250,000 homestead exemption, I would have been billed about $1,700 less. It would have reduced my bill from $4,780 to $3,080. Most of the “savings” is from the amount going to Flagler County’s general fund. That would drop from $2,330 to just $777. Other programs, such as mosquito control, would have similar cuts.
It is all very fine to write in all CAPS how local government supposedly wastes money, but I haven’t seen much proof. This is similar to “our” president’s repeated, baseless, claims that the 2020 election was stolen from him. As I remember it, there were 60 lawsuits filed and only one minor win by Mr. Trump’s allies. That one “win” did not change a single vote. Lies do not fix potholes or put out fires.
A local government is not a single entity. It is made up of elected officials and paid workers. Those paid workers are in general dedicated to serving the public. I certainly do not want the fire department, sheriff’s department (police), or mosquito control cut.
If our county (local) taxes are too high, then elect county commissioners who will lower those taxes. It is a terrible idea to allow the power grabbing Florida legislature and governor to decide our local tax and budget priorities.
Bonnie McGee says
I agree with your excellent analysis of this proposal. We would lose much local governance and be put in the position of begging for money from Tallahassee to help support our valued services. I don’t want the library to reduce hour, services or employees. I want our parks and recreational facilities to continue the good work they do. I want our roads, our water facilities our mosquito control, etc. to continue without having to send us extra bills for them.
Skibum says
Thank you! Hopefully more people will see this scheme for what it really is if they start using their noodle instead of fantasizing that they will somehow be getting free money if they vote yes. That false dream will surely vaporize before their very eyes if this ridiculously irresponsible proposal is passed by voters who know no better.
Voter says
Snake oil for sure, not buying into this Republican scam.