TALLAHASSEE. Fla. \u2013 Last month, Florida Gov. Ron DeSantis signed a new bill into law that may have a major impact on local governments trying to raise property taxes.<\/p>\n
That law \u2014 SB 4-F<\/a> \u2014 was approved by lawmakers during the recent property tax special session, which also yielded an amendment cutting property taxes statewide.<\/p>\n But unlike that amendment<\/a>, SB 4-F doesn\u2019t alter the state\u2019s constitution.<\/p>\n Instead, SB 4-F serves as an implementation bill for the amendment, which will be considered by voters when it goes on the ballot in November. The property tax amendment will need 60% approval to pass.<\/p>\n LOCAL PROPERTY TAX CHANGES<\/p>\n Furthermore, SB 4-F revises how local governments calculate the maximum property tax rate that may be adopted with a simple majority vote.<\/p>\n Under current law, local governments may raise the rolled-back rate<\/a> \u2014 the rate necessary to bring in just as much revenue as the prior year \u2014 based on growth in Florida\u2019s per-capita income, state officials explain. SB 4-F removes that adjustment.<\/p>\n In short: this means that local governments can\u2019t rely on the automatic \u201cincome-growth\u201d add-on; they\u2019ll instead have to provide public notice and budget hearings, per the existing TRIM law<\/a>.<\/p>\n SB 4-F also establishes higher approval thresholds for local governments who want to raise these rates:<\/p>\n Millage rates up to 110% of the rolled-back rate require a two-thirds vote.<\/p>\n Millage rates above 110% of the rolled-back rate require a:<\/p>\n Unanimous vote<\/p>\n Three-fourths vote for larger governing boards, or<\/p>\n Approval by voters via referendum<\/p>\n Per state officials, these changes are expected to bring down the base millage rate for many areas of the state and limit local governments\u2019 ability to raise property tax collections without broad public support.<\/p>\n SB 4-F took effect immediately upon being signed.<\/p>\n BUDGET POSTINGS?<\/p>\n