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Florida lawmakers, in a whirlwind 24-hour special session, approved the governor’s sweeping proposal to overhaul the state’s property tax system on Tuesday.
Gov. Ron DeSantis unveiled his phased approach to eliminating property taxes for 92% of Floridians on May 27. Less than a week later, legislators voted along party lines to send a required constitutional amendment to ballots in November.
At least 60% of voters must still approve of the changes. St. Petersburg Mayor Ken Welch and Tampa Mayor Jane Castor have warned residents that the proposal would have drastic effects on the region’s two largest cities.
Welch, in a social media post on Monday, explained how the governor’s plan could have “serious consequences for St. Petersburg and communities across Florida.” His videotaped message to constituents coincided with the start of a special legislative session that has since ended with little debate.
“This proposal doesn’t eliminate the cost of government, it simply shifts the burden elsewhere or reduces critical local services,” Welch said. “The people of St. Petersburg have consistently told us that they value public safety, housing, youth opportunities, arts and culture, and support for those in need.”
If approved by voters, the constitutional amendment will increase the homestead exemption from $50,000 to $150,000 in 2027, which would wipe out property taxes for about 60% of property owners. St. Petersburg stands to lose about $75 million in annual funding, city officials said on Thursday.
DeSantis also wants to eventually increase the exemption to $500,000, eliminating property taxes for 92% of permanent residents. The term-limited governor said he would leave that timing up to state legislators.
His proposal passed 30-9 in the Senate and 75-26 in the House, despite lawmakers having no time to analyze its effects on local governments. They did, however, include a provision that exempts school district levies.
“This is the hardest vote I’ve had to take because there are so many things that we still don’t know,” said Sen. Corey Simon. “But we’re gonna give the voters a chance to at least opine before we destroy their opportunity to at least speak on it.”
Castor, following the governor’s announcement, told the media that “everything could be at risk if there are dramatic changes to property taxes.” That revenue accounts for approximately 70% of Tampa’s general fund, and still doesn’t cover public safety costs.
Castor said politicians often want to “check a box” to highlight that they lowered taxes without considering the negative impact on constituents. She also noted that Florida already caps property tax increases at 3% and lacks a state income tax.
At a subsequent event, Castor urged residents to consider the plan’s consequences before voting on the constitutional amendment in November. "They see 'tax cut,' and of course, everybody wants that," she said.
"But think about the services that you're going to lose."
DeSantis said his proposal would limit the use of property taxes to core services, including public safety and infrastructure. Welch noted that the cuts would still affect “police and fire protection, emergency response, neighborhood improvements, parks, roads, and other programs that strengthen our community.”
“For St. Pete, the impact would be significant,” Welch added. “Funding for the arts and cultural institutions … could also be at risk. We must protect the local services that make St. Pete a safe, vibrant, and inclusive city.”
According to the Florida League of Cities, 85 municipalities could not maintain current public safety funding levels under the proposal, even after eliminating all other public services supported by property taxes. In Tampa Bay, those include Gulfport, Largo, Seminole, Temple Terrace, Seminole, New Port Richey, and Tarpon Springs.
DeSantis had said the state would create a trust fund to support smaller cities disproportionately affected by the loss of property tax revenue; however, lawmakers removed that provision on Monday due to a lack of dedicated funding.
Following DeSantis’ announcement, mayoral candidate Charlie Crist pledged to reduce St. Petersburg’s millage rate - used to calculate property tax bills - by .40 mills. He said that would save home and business owners roughly $14.8 million annually.
Welch, in a subsequent prepared statement, said his opponent is “treating property taxes like a cable bill you can just cancel when you feel like it.” He believes the cuts, without a replacement plan, “would leave local governments with impossible choices that ultimately hurt families and communities.”
Welch’s campaign also highlighted concerns from the local police and fire unions. Jonathan Vazquez, president of the Suncoast Police Benevolent Association, said officers are also “deeply impacted by inflation and the insane cost of living across the greater Tampa Bay region.”
However, Vazquez noted that “property taxes are how we put food on our tables and take care of our families.” He said drastically reducing or eliminating that funding source “means that local governments will not be able to pay, equip, or train their law enforcement officers and fire personnel appropriately.”
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