Boca Raton could lose nearly $25 million if Florida property tax plan passes

BOCA RATON, Fla. (CBS12) — About $25 million in tax revenue could be on the line for the city of Boca Raton over the next two years if property taxes are cut, city officials told the South Florida Sun Sentinel.

On June 2, the state Legislature backed the “Save Our Homes from Excessive Property Taxes” plan, which could increase the state’s homestead exemption to $150,000 in 2027 and $205,000 in 2028. The proposal must receive support from at least 60% of voters in November to pass.

Small municipalities without diverse tax bases are considered the most vulnerable, but larger cities like Boca Raton could also be affected, particularly when it comes to funding services.

According to the South Florida Sun Sentinel, Boca Raton Chief Financial Officer Jim Zervis said the city would lose about $8 million in 2027 and about $16.7 million in 2028.

See also: Understanding Florida’s pool safety laws: Stricter laws aimed to prevent child drownings

Zervis said during a Tuesday meeting that less than 22% of the total property tax bill goes to the city, but those funds help provide local services.

The South Florida Sun Sentinel also reported that the police and fire departments could lose nearly $10.3 million in 2028 under the proposal.

Zervis said the city’s overall tax base could decrease by 11% if the property tax cuts are approved, meaning more of the funding burden could shift to non-homestead properties, including commercial, industrial and rental properties.

According to the South Florida Sun Sentinel, Deputy Mayor Michelle Grau warned before Tuesday’s meeting that cutting property taxes could worsen the city’s affordability challenges, particularly for renters, and said that if voters approve the plan in November, someone will ultimately bear the burden.

The South Florida Sun Sentinel also reported that Zervis told the council during Tuesday’s meeting that he believes the proposal is likely to be approved.

Zervis said the city would need to adopt a priority-based budgeting approach to determine which services should receive funding and what level of service could be maintained under a smaller budget. Areas under review could include:

Public safety response times and staffing levelsParks, public landscaping and street maintenanceStreets and infrastructureHomelessness effortsLocal nonprofits and affordable housingRecreational programming

According to the South Florida Sun Sentinel, Zervis also outlined several options the Boca Raton City Council could consider if property taxes are reduced, including raising the millage rate, increasing fees for city services such as parks, libraries and parking, and generating revenue through naming rights, billboards or advertising.

The South Florida Sun Sentinel reported that the council took no action during Tuesday’s meeting, though several members expressed frustration with the state’s proposal. Council member Yvette Drucker criticized state leaders for pursuing property tax cuts instead of focusing on insurance reform and warned that reducing essential services, such as fire rescue, could lengthen emergency response times and potentially put lives at risk.