LEALMAN, Fla. — Fire officials and local leaders in Pinellas County are assessing how Amendment 3, a proposed state constitutional amendment that would increase the homestead property tax exemption, could affect public safety budgets if voters approve it in November.
The ballot measure would provide property tax savings for eligible homeowners. But some local governments and fire districts said it could also reduce the property tax revenue they use to fund public services, including fire department operations.
In Safety Harbor, Mayor Joe Ayoub said city leaders are reviewing how they would pay for services if the amendment passes. He said the city estimates it could lose about $3 million in property tax revenue.
One option under consideration is a fire assessment fee that residents would pay to help fund fire department operations, Ayoub said.
“We don’t know if it could replace 100% of the revenue loss from Amendment 3, or a certain percentage of it,” Ayoub said. “So we’re hiring a consultant that’s looking at that, and when we know, that’s going to help us make our decisions moving forward.”
The potential impact could be different for independent special fire districts. Jim Millican, division chief of the Lealman Fire District, said his district relies solely on ad valorem taxes and does not receive some of the other tax revenue available to cities.
“An independent special district does not collect anything from the state of Florida, whether it’s sales tax, gas tax,” Millican said.
Millican said he estimates Lealman could lose about 30% of its budget. He said about 85% of the district’s budget goes toward personnel costs, leaving limited options to absorb a significant loss in revenue.
A fire assessment fee could be one alternative, Millican said, but that would require voter approval.
“As the fire department, we never want to make a threat to our residents that, ‘Hey, you cut our taxes, we’re cutting your service.’ That’s not where we’re going with it,” Millican said. “What they need to have realization of is we have to cut something, and what do we cut and how do we cut?”
Supporters of Amendment 3 said the measure would give homeowners significant property tax relief. Republican state Rep. Berny Jacques, who supports the amendment, said rising costs are putting pressure on homeowners.
“When you look at the situation where a lot of folks are in fear of losing their homes, this is a great opportunity for them to be able to give themselves a significant tax break while keeping their homes here in the state of Florida,” Jacques said.
Jacques also said the state would support first responders if the amendment creates funding issues for public safety.
Ayoub and Millican said local agencies are also facing rising equipment costs and increased call volumes.
“We need to compete with other cities and businesses to recruit and retain employees,” Ayoub said. “So across the board, our costs are going up, and we get to pay for that, and that’s just the reality of it.”
The state requires constitutional amendments to get 60 percent of the vote to be approved.