- 5 hours ago
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Proposed property tax cuts could jeopardize parks, aging, and children’s services in Hillsborough County. Hiring freezes, layoffs, and additional taxes and fees are also on the table.
Community Redevelopment Area (CRA) funding may be on the chopping block as well if voters approve recently passed property tax reform legislation in November. The plan, championed by outgoing Gov. Ron DeSantis, would increase the homestead exemption from $50,000 to $15,000 in 2027 and to $250,000 in 2028.
Hillsborough stands to lose $367 million in annual revenue, according to a report prepared by the Management and Budget Department and presented on Wednesday. County Commissioner Harry Cohen said officials must prepare to make “some very difficult decisions.”
“I was flabbergasted by this report,” Cohen said. “This is something that will completely upend the way governments are funded in our state.”
The report, presented by Chief Financial Administrator Tom Fessler, was created to help the commission and residents understand how property tax reform may affect county revenues, service delivery, financial planning, and long-term fiscal sustainability.
Staff concluded the document by noting that property tax revenue decreased by about 29% during the Great Recession. They believe that the state’s proposed plan would create “similar, but more lasting” impacts on county operations.
The legislation also decreases the annual assessment cap on non-homesteaded properties, including condo towers, apartment complexes, businesses, and vacant land, from 10% to 5%. Fessler said that will “further limit growth and ad valorem revenue for the county.”
Hillsborough would have to shift resources to fund the Sheriff’s Office and Fire Rescue at current levels, Fessler explained. Those agencies received $1.3 billion in this year’s budget, which accounts for 88% of all property tax revenue.
The county would collect $1.13 under the new plan. Cohen noted that would not be enough to cover just two critical services, even if officials “cut everything” else.
Fessler said Hillsborough would “probably be able to fund” library system operations if the property tax proposal passes. However, “there would be very little room left” for renovations or new facilities.
Commissioners must reconsider proposed budget increases in fiscal year 2027, which begins on Oct. 1. Fessler said utilizing funding reserves could “help spread the impacts out over multiple years.”
Hillsborough could “further reduce or eliminate nonprofit funding,” Fessler said. Workforce reductions and compensation freezes may also be needed.
A new five-cent fuel tax, a 10% tax on utility bills, and increasing the county’s communication services tax could provide additional revenue, Fessler said, as could increasing parking and building services fees.
Reducing or eliminating parks, aging, youth, and other county-provided services is another option. “The legislation, as currently written, has some uncertainty as to whether we can even fund some of those things with ad valorem revenues,” Fessler continued.
“We could approach the City of Tampa and talk about whether or not we continue to fund the CRAs within the county.”
At least 60% of voters must approve of the governor’s property tax plan, which would take effect on Jan. 1. Commissioner Chris Boles said he requested the report to understand how the proposal would impact the “free county of Hillsborough, which we’re not, certainly, under this.”
“This really makes me think that Tallahassee is turning into Washington - we’re not able to do what we need to do for our residents here in Hillsborough County,” said Boles. “This is too much.”
Boles said he hopes that “cooler heads prevail.” Cohen noted that the legislation was passed “literally in 24 hours with no discussion and debate” or opportunity to analyze potential impacts.
The surrounding uncertainty “makes it very, very difficult” to make policy decisions “because there is a drastic difference between what we have now and what might occur in November,” Cohen said.
Commissioner Joshua Wostal pushed back on those assertions. He said voters will continue to hear “extreme hyperbole about the situation - some pretty flamboyant, bombastic points of view.”
Wostal said many of the same officials who previously advocated for incremental tax increases now believe the “world’s going to end” when there is an “opportunity for relief.” He encouraged constituents to “take the government’s opinions with a huge grain of salt, and vote for your wallet.”
“I do not think it’s hyperbolic or bombastic to point out to people that there is no possible way to make this work without making major cuts …,” Cohen replied.
Commissioner Gwen Myers motioned to hold a budget workshop and further discuss “all angles” in January if the property tax reform plan passes in November. Her colleagues unanimously agreed.
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