Roads, libraries, parks and Fire Rescue response times are among the areas where commissioners say residents will feel the immediate effects.
Florida Lawmakers Advance Sweeping Property Tax Overhaul
Florida lawmakers pass bills to reduce property taxes, sparking debate among supporters and critics over budget impacts and service cuts.
- Proposed Florida legislation to cut property taxes could drastically reduce Palm Beach County’s budget.
- The cuts would impact services like road construction, parks, libraries, and Fire Rescue response times.
- One bill, HJR 201, would shift the tax burden from homesteaded properties to businesses and non-homesteaded homes.
- While homeowners would see lower taxes, critics and county officials warn of unsustainable tax hikes for businesses and crippling effects on government operations.
The Florida Legislature’s efforts to reduce property taxes drastically statewide would cripple parts of Palm Beach County‘s government, wiping out as much as 90% of some areas of its budget, a top official told commissioners.
Property owners would see a huge decrease in their property taxes, but the cuts would limit new road construction and the operation of parks and libraries, and Fire Rescue would struggle to respond to emergency calls on a timely basis. Fire Rescue and the library system could each lose more than 40% of their funding.
Chief Deputy County Administrator Todd Bonlarron delivered the news during a commission meeting on Nov. 25. He discussed how different bills advancing in the Florida House would affect county government operations.
Bonlarron said the most concerning is HJR 201, which would make the 90% cut for commission-controlled departments. It aims to remove non-school property taxes for homesteaded homes — those that residents have declared to be the place they live — and shift the burden to businesses and non-homesteaded properties.
Critics say the bill would raise these tax payments to unsustainable levels if it were to become law.
HJR201, like other bills, ensures that public safety funding remains intact, so the sheriff’s budget — which already accounts for almost half of all Palm Beach County spending — cannot be decreased.
County Administrator Joe Abruzzo cautioned against using either surplus or reserve funds to address budget shortfalls, saying doing so might lower the county’s AAA bond rating. The county would pay more to borrow money if that rating slips.
Bonlarron’s presentation dealt with unincorporated areas that fall under county jurisdiction, which is generally anything west of Military Trail. Those areas account for 43% of the county’s population of 1.6 million. The remaining 57% are in the county’s 39 municipalities, which also are expected to sustain significant impacts if the bills become law.
Attending the special meeting at Bonlarron’s request was state Rep. Toby Overdorf, R-Palm City, chair of the 37-member House Select Committee on Property Taxes.
He did not dispute any of Bonlarron’s findings and said he came to inform, not to advocate. He stressed, however, that he did not think the current system where increases in local and county taxes can far exceed the rate of inflation was sustainable, either.
“We need to put money back into the hands of Floridians,” Overdorf said.
As for Palm Beach County, Overdorf said the county had a taxable value of $210 billion in 2021 and $343 billion in 2026, an increase of $133 billion. The county collected $1 billion from taxpayers in 2021 and $1.5 billion in 2026, an increase of nearly 50%. They did so without increasing the tax rate as new construction and increasing property values resulted in the same tax levy generating additional revenue.
“We are seeing this trend statewide,” Overdorf said, acknowledging that the cuts to property taxes would have significant effects on local and county governments. “They would be required to make adjustments in the way they operate. What they will look like will vary from city to city and county to county.”
Property tax legislation in line for vote by March
Abruzzo defended the increases, saying salaries rose to retain and attract critically needed employees. He said the county’s cost of living ranks among the highest in the state and that construction costs have surged, rising four to five times compared to what they were in 2021.
Overdorf acknowledged local and county officials would have to address a difficult situation if the bill were to pass.
“I don’t envy your job,” said Overdorf to Abruzzo, “but I have a job to do as well.”
Commissioners told Overdorf that it will be impossible for the county to operate effectively if it loses such a large amount of its revenues. Commissioner Maria Marino called the proposed cuts “ridiculous,” noting: “It sounds like a great idea, but we need to educate people on what they will lose and how this would be so hurtful.”
Marino said the move would make it difficult for businesses to function. Mayor Sara Baxter said her family’s privately run business can barely afford to pay its current tax bill. Increasing it could force her and her husband to shut it down, she added.
Bonlarron said non-homesteaded properties account for 61% of the county’s tax base. That figure would significantly increase if the bills currently under consideration become law.
His presentation also pointed to other bills advancing in the House include:
- HJR 203: Phase out elimination of non-school property tax for homesteads — This bill is similar to HJR 201, but it would gradually phase out property taxes for homesteads by annually increasing the exemption by $100,000 over a period of 10 years. It would cut eventually county commission spending by 72%, county library by 33% and Fire Rescue by 31%.
- HJR 205: Elimination of non-school property tax for homesteads for persons age 65 or older — It exempts homestead property tax from all levies other than school districts for people older than 64. It would cut county commission spending by 65%, county library by 32%, and Fire Rescue by 30%.
- HJR 207: Assessed home value homestead exemption of non-school property tax — It adds a homestead exemption for levies outside school levies equal to 25% of the remaining assessed value after applying existing exemptions. Like others, this bill would prohibit municipalities from touching law-enforcement funding. It would cut county commission spending by 64%, county library by 26% and Fire Rescue by 31%.
- HJR 209: Property insurance relief homestead exemption of non-school property tax — This bill targets homesteaded properties that have home insurance by increasing the existing exemption by $100,000. The bill protects school levies and shields law-enforcement funding, too. It would cut county commission spending by 72%, county library by 33% and Fire Rescue by 31%.
- HJR 211: Accrued Save-Our-Homes property tax benefit for non-school property tax — This proposal seeks to increase the maximum value of the Save-Our-Homes benefit, which can be transferred to a new homestead for all levies, save school district levies. Again, law-enforcement funding would go untouched. It would have a minimal impact on county government, resulting in cuts of less than 1%.
- HJR 213: Modification of limitations on property assessment increases — This bill modifies limitations on property assessment increases by capping all levies up to 3% of the assessment for the prior year or based on the percent change in the Consumer Price Index, whichever is lower. This would include school levies, but not law enforcement funding. The impact is to be determined.
- HJR 215: Ad valorem taxation — HJR 215 modifies the Save-Our-Homes portability benefits for married couples establishing a joint homestead and prevents the previous year’s millage rate from taking effect unless approved by a two-thirds vote of the governing body. This bill would have minimal impact.
Commissioner Maria Sachs labeled the bills as another Tallahassee effort to erode home rule.
“We like local control here. We are used to it,” she said. “There already is too much Tallahassee control of our gun laws and our effort to secure our own buildings. The bigger issue you need to address is property insurance, not property taxes.”
Sachs and Baxter called on lawyers to determine whether the county could send flyers to residents outlining the consequences of reducing property taxes. It may be difficult to do that as the county cannot become politically involved on a ballot question, according to a county attorney.
Overdorf noted that the proposed legislation could be modified. Gov. Ron DeSantis has criticized the effort to include multiple bills on the ballot, arguing that it would confuse voters. Overdorf said it is possible the bills could be combined into a single ballot question.
He said additional committee meetings will be held. The full House might consider the issue in January. It must be approved by a 60% vote in both the Senate and House. DeSantis would not need to sign the bills for the constitutional amendment to appear on the ballot. Voters, Overdorf noted, will have the final say as they will need to approve an amendment to the state Constitution.
“We should not be afraid to let the voters, the same voters that elected each of us to office, make that decision for themselves, for their communities, and for this state.”
Mike Diamond is a journalist at The Palm Beach Post, part of the USA TODAY Florida Network. He covers Palm Beach County government. You can reach him at mdiamond@pbpost.com. Help support local journalism. Subscribe today.