The Palm Beach County School District would lose nearly a billion dollars per year if voters approve a change in the state constitution to eliminate homestead property taxes, according to research from the Florida Policy Institute.
Sean Cooley, district’s chief communications officer, said the district “is concerned any proposal that would reduce school funding.”
“Property tax revenue funds teacher salaries, school safety and the programs our students depend on every day,” Cooley added. “We’re reviewing the potential impacts of the property tax proposal.”
Senate Joint Resolution 2-F, which is similar to a proposal backed by Gov. Ron DeSantis, calls for the state’s homestead exemption to be raised to $250,000 from $50,000 in 2028 and for homestead property taxes to be eliminated by 2030-31. Because the joint resolution calls for a change in the state constitution, it would have to be approved by a three-fifths majority in both the state House of Representatives and Senate.
If the resolution gets three-fifths backing in the Legislature, it would appear on the November ballot, where it would need to be approved by 60% of voters.
Palm Beach County schools would be among hardest hit
Homestead property taxes — those paid by Floridians on their primary residences — pay for local government services, and they are a huge part of how school districts in Florida are funded. Critics have said eliminating them would be a crippling blow to the state.
“If the resolution passes, it would adversely impact counties, school districts, municipalities, and special districts like Children’s Services Councils and Hospital Districts,” the Florida Policy Institute, a non-profit research and advocacy group, said in its analysis of the joint resolution. “To offset the revenue loss, localities would have to increase taxes and fees and/or make budget cuts, effectively leading to a cost shift as Floridians either pay more for or lose vital public services.”
DeSantis said homestead property taxes have become “excessive” and that Floridians need relief from them.
“Property tax revenue collected by local governments has nearly doubled in the past seven years and is expected to reach an astounding $83 billion by 2032,” DeSantis said in calling for a special legislative session, which got underway on June 1. “Florida homeowners need relief. Now is the time to stand up for taxpayers, enact a historic reform, and save the home of every Floridian.”
FPI’s analysis found that school districts, already facing a loss of state funding because of enrollment decline, would collectively lose $5 billion annually if the homestead exemption is expanded to $250,000. They’d lose a collective $8.59 billion if the homestead property taxes are eliminated.
The revenue loss for the Palm Beach County School District would be among the largest in the state, FPI’s analysis found.
The district would lose $418.2 million if the homestead exemption is expanded to $250,000, and it would lose $999 million if the homestead property tax was eliminated.
Florida’s other large school districts would also see gigantic revenue declines, according to FPI’s analysis.
Miami-Dade would lose $512.1 million if the exemption is expanded to $250,000 and $1.1 billion if the homestead property tax is eliminated. In Broward, it would $473.8 million and $875.5 million.
The Orange County School District would lose $290 million if the homestead exemption is expanded to $250,000 and $492.1 million if the homestead property tax is eliminated. In Hillsborough, the revenue losses would be $319.5 million and $494.5 million.
The Florida Education Association, the state’s largest association of education professionals, blasted the proposal.
“That money doesn’t just disappear,” the group posted on its Facebook page. “Local communities would either face higher taxes and fees elsewhere or cuts to schools and essential public services.”
Wayne Washington is a journalist covering education and Riviera Beach development for The Palm Beach Post. You can reach him at wwashington@pbpost.com. Help support our work; subscribe today.
This article originally appeared on Palm Beach Post: Florida property tax cut could cost Palm Beach County schools $1B
Reporting by Wayne Washington, Palm Beach Post / Palm Beach Post
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