Reducing property taxes is a primary issue this session. HJB 203 is getting significant attention. This bill would amend Florida’s Constitution, increasing non-school property tax exemptions by $100,000 annually for the next 10 years. On Jan. 1, 2037, it would fully exempt all homestead properties from non-school property taxes. The measure would prohibit local governments from reducing total funding for first responders below their highest budget level of either Fiscal Years 2025-26 or 2026-27.

The joint resolution requires a three-fifths vote of the membership of both houses of the Legislature for final passage. If approved by the House and the Senate and approved by 60 percent of voters during the 2026 general election, the proposed amendment will take effect on Jan 1, 2027.

Why Eliminate this Revenue Source?

Palm Bay Rep. Monique Miller, the bill’s sponsor, worries that local governments  use property taxes “like ATM machines,” with property taxes up 60% statewide since 2020. Miller hopes by reducing anticipated revenue from homestead properties “over 10 years, we will be giving local governments time to adjust to new revenue levels and empowering them to find responsible solutions.”

The bill reduces a source of local tax revenue but does not prohibit local governments from upping the millage rate to compensate, increasing the tax burden for non-homesteaded properties.

Many small-town politicians have spoken out against the bill, claiming it will cut vital services. 

Has our Village directed our lobbyist to fight this bill? Or could it be a positive here? The point of the tax reduction effort is to push local governments to become more efficient with residents’ tax money and thus to help make Florida more affordable for full time residents.   

Do we even know  the percentage of total property revenue that comes from homestead properties and the annual impact of an increase  in the exemption based on the current millage rate for each jurisdiction?  

The Florida League of Cities: SUPPORTS local authority over equitable property tax decisions that fund essential services like public safety, infrastructure, parks, and programs that define a community. Reducing or eliminating this revenue without a reasonable replacement would destabilize city budgets, threaten city creditworthiness, and undermine local priorities.

What - no ideas on how to reduce local government waste?

Islamorada saw a significant increase in expenses for this budget year: an increase of $4,741,452 in expenses this year compared to the previous year.