After Gov. Ron DeSantis called for a special session on property tax relief, city officials are warning the cuts would jeopardize funding to vital services.
JACKSONVILLE, Fla. — A property tax relief proposal being pushed by Florida Gov. Ron DeSantis could cost Jacksonville more than $300 million annually, according to a preliminary analysis from the Jacksonville City Council Auditor’s Office.
In an email sent to Jacksonville City Council members, the auditor’s office said a proposed $250,000 homestead exemption on the first $250,000 of a home’s assessed value would reduce city revenues by approximately $265 million, based on property values as of Jan. 1, 2025.
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Officials said the actual impact would likely exceed $300 million because the proposal would not take effect until property values are assessed on Jan. 1, 2027.
“The proposed reduction of the annual assessment cap from 10% to 5% for non-homestead/commercial properties would be in addition to the $300 million estimate,” the email states.
The auditor’s office said calculating the impact of the commercial property provision is more complex and will require additional data from the Duval County Property Appraiser’s Office.
DeSantis has called lawmakers into a special session beginning Monday, June 1, to consider property tax relief measures. If approved, city officials said they will conduct a more detailed analysis and provide additional information to council members.
The proposed changes would not affect the city’s upcoming budget, which will be discussed and approved this summer. According to the auditor’s office, any financial impact would first be felt in the city’s 2027-28 fiscal year budget.
The estimates come as city leaders weigh what impacts a significant reduction in property tax revenue could mean for city services and operations. The auditor’s office said Finance Committee Chair Matt Carlucci plans to hold a session following the committee’s meeting on June 2, where the proposal will be discussed and its potential impact on the city.
Mayor Donna Deegan expressed concerns about the proposal’s effect on city finances, warning that large reductions in property tax revenue would jeopardize public safety.
Deegan released the following statement to First Coast News on the matter:
“While the latest homestead exemption proposal would have a significant impact on the city’s budget, necessary approvals from the state legislature and voters make it a long way off from becoming reality. The administration will continue monitoring property tax proposals and analyzing different revenues scenarios as future budgets are prepared. As it stands now, property tax revenue barely covers Jacksonville’s police and fire costs. It will put public safety in jeopardy to eliminate or dramatically change this revenue source.”