So how much could your city lose if the ballot question to slash property taxes passes in November?
The Palm Beach County government, which oversees unincorporated areas, stands to lose $324 million annually. Special taxing districts, such as county fire rescue and the library system would sustain losses of $148 million and $47 million, respectively. The figures range from $31.8 million for West Palm Beach to $83,000 for Briny Breezes.
In most cases, the loss amounts to at least 25% of the revenue currently generated by property taxes, also called ad valorem. County Appraiser Dorothy Jacks provided updated figures on the losses on June 4.
Jacks analyzed the effect of increasing the homestead exemption from its current level of $50,000 to $150,000 in 2027 and then to $250,000 in 2028, the year for which these loss totals apply. The data provided included all 41 taxing districts countywide.
The Glades city of South Bay, according to the Florida League of Cities, would lose 99% of its tax base. The cuts are so severe that some cities — especially those whose tax bases are largely older homes — could be forced into insolvency, Jacks said.
The state Legislature on June 2 approved placing Gov. Ron DeSantis’ proposed constitutional amendment on the Nov. 3 ballot. Sixty percent of voters must vote yes for the referendum to pass.
Midsized communities that might not go insolvent also are bracing for negative impacts. Ray Liggins, the village manager of Royal Palm Beach, said the current millage rate of $1.92 per $1,000 of assessed value would have to be nearly doubled to provide the same level of services to its 43,000 residents.
Each taxing authority — county, school district, and municipality — sets its own millage rate (1 mill = $1 for every $1,000 of taxable value) each September for the budget year that begins Oct. 1. Property or ad valorem taxes help pay for local services like public safety, infrastructure and municipal operations.
Some of the municipalities that would be strongly affected include:
“It is the most significant restructuring of Florida’s local government finance system since the adoption of Save Our Homes in 1992,” said Wellington Village Manager Jim Barnes. That law limits annual assessment increases on homsteaded properties to 3% or the Consumer Price Index, whichever is lower.
DeSantis has been calling for property tax relief for owner-occupied homes over the past year. He has argued that county and local governments have adopted “inflated” budgets, taking advantage of increasing property values.
Liggins noted the referendum was placed on the ballot without a detailed study being done to determine its effect on local and county governments.
In a letter to legislative leaders, the League of Cities said the proposal would alter the financial foundation upon which Florida’s cities operate and questioned why no comprehensive fiscal analysis had been undertaken.
2028 revenue losses for each Palm Beach County taxing district
Here are the district-by-district totals that Jacks released on June 4.
County government
Palm Beach County: $324,219,868
Palm Beach County Fire Rescue: $147,462,746
Palm Beach County Library: $28,184,331
Special districts
Palm Beach County Health Care District: $47,271,257
Children’s Services Council: $35,361,580
South Florida Water Management District: $16,578,443
Greater Boca Beach & Park District: $7,837,687
Florida Inlet Navigation District: $1,945,319
Jupiter Inlet District: $609,188
West Palm Beach DDA: $230,553
Delray Beach DDA: $78,100
Central communities
West Palm Beach: $31,785,199
Riviera Beach: $9,719,225
Lake Worth Beach: $4,755,710
Palm Beach: $2,242,306
Lake Clarke Shores: $1,534,652
Lantana: $1,343,722
Atlantis: $1,177,777
Palm Beach Shores: $557,793
Hypoluxo: $526,328
South Palm Beach: $441,992
Mangonia Park: $384,082
Haverhill: $376,904
Manalapan: $117,724
South communities
Boynton Beach: $22,700,577
Boca Raton: $19,745,938
Delray Beach: $18,182,743
Highland Beach: $1,483,113)
Ocean Ridge: $829,515
Gulfstream: $340,704
Village of Golf: $183,822
Briny Breezes: $82,916
North communities
Palm Beach Gardens: $21,441,912
Jupiter: $9,348,439
North Palm Beach: $6,717,912
Tequesta: $2,900,155
Lake Park: $1,137,850
Juno Beach: $543,382
Jupiter Inlet Colony: $229,350
West communities
Greenacres: $8,659,106
Wellington: $8,208,635
Royal Palm Beach: $3,902,765
Westlake: $2,698,162
Palm Springs: $1,910,358
Belle Glade; $1,031,891
Loxahatchee Groves: $532,258
Pahokee: $295,269
South Bay: $195,500
Mike Diamond is a journalist at The Palm Beach Post, part of the USA TODAY Florida Network. He covers Palm Beach County government. You can reach him at mdiamond@pbpost.com. Help support local journalism. Subscribe today.
This article originally appeared on Palm Beach Post: Florida tax plan would cost cities 25% or more, county estimate says
Reporting by Mike Diamond, Palm Beach Post / Palm Beach Post
USA TODAY Network via Reuters Connect
By Mike Diamond, Palm Beach Post | USA TODAY Network
