Gov. Ron DeSantis<\/p>\n
Voters will decide Gov. Ron DeSantis\u2019 plan to cut property taxes by raising the tax exception for owner-occupied homes.<\/p>\n
The Florida State Legislature passed the plan Tuesday meaning a constitutional amendment that would raise the homestead property tax exemption from $50,000 to $150,000 in 2027 and then to $250,000 the year after will go to referendum this November.<\/p>\n
The amendment, which was introduced by Gov. Ron DeSantis, would require approval from 60% of the voters in November to go into law. <\/p>\n
The State Senate voted 30-9 and the State House voted 75-26 to pass the bill in the Special Legislative Session.<\/p>\n
The legislation was opposed by the Lee County Board of County Commissioners, which voted unanimously on Tuesday to send a letter to the legislature opposing the expanded exemption unless the revenue losses for local governments can be replaced with \u201cstable, recurring replacement funding sources.\u201d<\/p>\n
The county projects that the bill could cause a property tax revenue loss of $129.7 million in next year\u2019s budget and a $240.8 million loss in the 2028-29 budget.<\/p>\n
State Sen, Jonathan Martin, R-Fort Myers, said he has been in touch with county commissioners and heard their concerns. He said he shared their concerns and said he was trying to find out how the proposed changes will affect their budget. He said he has not seen their projections as of press time.<\/p>\n
He questioned if the county\u2019s numbers were taking into account potential growth. <\/p>\n
\u201cAre they assuming that no additional homes are going to be purchased down here or that economic activity is going to stop?\u201d<\/p>\n
Martin said that \u201ceconomic activity increases with tax cuts.\u201d<\/p>\n
Martin said the bill will shield school districts from losing any tax revenue.<\/p>\n
\u201cI feel very strongly that the voters should decide,\u201d Martin said.<\/p>\n
Martin had championed a bill last year which would order a study to consider the elimination of property taxes<\/p>\n
In their letter of opposition to the proposal, county commissioners said \u201cThese proposals represent one of the most significant restructurings of local government finance in Florida\u2019s history and warrant careful consideration of their long-term impacts on communities throughout the state.\u201d<\/p>\n
The letter from the county commissioners notes that local communities are still recovering from Hurricane Ian, as well as subsequent hurricanes Helene and Milton.<\/p>\n
Ahead of the legislative votes on Tuesday, Cape Coral Mayor John Gunter on Monday sent a letter to the Lee County Legislative Delegation in opposition.<\/p>\n
Saying property taxes constitute about 59.7% of the city\u2019s operating fund revenues, which \u201cdirectly support core public safety and quality-of-life services\u201d he requested two things: That Lee County\u2019s state representatives would:<\/p>\n
\u2022 Oppose any legislation that would increase the homestead exemption to $250,000 or otherwise further erode local ad valorem revenue without a dedicated replacement funding source; and<\/p>\n
\u2022 Support efforts to \u201cpreserve local fiscal home rule so that rapidly growing communities like Cape Coral can maintain public safety, transportation, parks, and other essential services at levels our residents expect and deserve.\u201d<\/p>\n
The matter is expected discussed by city council at its budget workshops on Thursday and Friday. <\/p>\n
Town of Fort Myers Beach Manager Will McKannay said the legislation would carry a double impact for local governments, if passed by voters in November.<\/p>\n
If Lee County is forced to make budget cuts as a result, that could also impact the town. <\/p>\n
\u201cWe are looking at definitely an impact if it is passed in full,\u201d McKannay said.<\/p>\n
McKannay said the hit in tax revenues to the town could be in the neighborhood of $300,000 or more.<\/p>\n
\u201cTo some, that may not sound significant but when you are me and looking at what that can money can do for us in regards to staff and services, and most importantly the services we provide on a daily basis there would be an impact,\u201d McKannay said.<\/p>\n
McKannay said he wasn\u2019t yet prepared to address how the town\u2019s budget would be impacted, as the exemptions wouldn\u2019t go into effect until next year if approved by voters in November.<\/p>\n
The town has more than 1,700 homesteaded properties.<\/p>\n
Town Councilmember Rebecca Link questioned whether the Beach would have to raise its millage rate if the property tax exemption is enacted.<\/p>\n
\u201cIt wouldn\u2019t go into effect until 2027,\u201d Fort Myers Beach Mayor Dan Allers said.<\/p>\n