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Study Finds Florida Homestead Tax Cuts Would Deeply Undercut City Revenues

The analysis finds eliminating homestead taxes would slash city revenue, forcing steep millage hikes to avoid service cuts.

Overview

  • Researchers at Wichita State University, in a Florida League of Cities study released Dec. 15, assessed fiscal impacts as House tax-relief amendments move forward.
  • Fully ending homestead property taxes would cut ad valorem collections by about 38% and shrink city general funds by roughly 14%, requiring millage rates to nearly double to hold services harmless.
  • Large fixed-dollar homestead exemptions of $250,000 to $500,000 would still reduce municipal revenue by about 25% to 35% and demand 20% to 70% millage increases on remaining taxable property.
  • Property taxes supply roughly 43% of municipal general revenue, while public safety consumes more than 56%, leaving cities especially vulnerable to cuts and rural communities with few replacement options.
  • Four proposals—HJRs 201, 205, 209 and 211—cleared a House committee for possible ballot placement, with sponsors promoting homeowner relief and carve-outs for police and schools.