St. Petersburg stands to lose about $75 million should voters approve Gov. Ron DeSantis’ property tax plan that would raise the homestead exemption to $250,000, city officials said Thursday.
The projection comes as cities and counties across the state assess what DeSantis’ plan could mean to their bottom lines and services they may need to cut.
A Florida League of Cities analysis of public safety spending found that 85 cities would not be able to fund public safety at the same level, even if they eliminated every other service funded by property taxes. Those municipalities include Largo, Gulfport, Temple Terrace, Seminole and Tarpon Springs.
DeSantis has been promising property tax relief for owner-occupied properties over the past year. His administration has been traveling the state pointing out what it deems are inflated budgets and misspending in local governments, including in St. Petersburg.
Doyle Walsh, Mayor Ken Welch’s chief of staff, told City Council members in a committee meeting Thursday morning that, using 2025 property values, the city would take a $74.8 million hit in property tax revenue effective Oct. 1, 2028 should voters approve the increased exemption.
Should 60% of voters approve the referendum that appears to be headed to the November ballot, then the city would lose half that amount, around $37 million, when a phased-in $150,000 exemption goes into effect Oct. 1, 2027.
The committee approved a resolution urging lawmakers to “carefully consider the practical and financial impacts of any proposed property tax reform on local governments and the communities they serve before advancing any constitutional amendment or related legislation.” It is going before the full council for approval later Thursday.
“OK, so when you’re talking 74 million, and we have what we pay police and fire … that is not an intersection mural,” said City Council chairperson Lisset Hanewicz. “They’re going through all these, you know, culture wars and all this stuff, and government spending, and blah blah blah. This is literally going and destroying a budget.”
“That’s 70-something million dollars that are going to police and fire right now, and we’re not even covering it all,” she continued. “And then they’re going to be like, well, you’re going to still have to do it because you can find that type of money under a seat cushion.”
Earlier this month, the city of Dunedin floated the possibility of creating a fire protection fee to offset property tax revenue reductions.
In St. Petersburg, 58% of the city’s 107,988 properties had a homestead exemption based on the 2024 tax base.
“That is going to mean jobs, and if we are made to hold police and fire harmless, that means other programs … are going to have to be cut,” Welch said Wednesday afternoon. “It’s going to be a tough lift for us if that passes. It’s trying to address a problem that really doesn’t exist in communities.”
This is a developing story. Check back for updates.