It shouldn’t have come to this.
The Florida Legislature approved a constitutional amendment that would slash both property taxes and many local government services, a change Gov. Ron DeSantis hopes will leave a lasting legacy on his time as the state’s chief executive. State lawmakers shouldn’t have wasted their time in a special session on what is a costly political stunt.
Neither should the voters who in November should just vote “NO.”
The proposal is extreme, even for a political party that almost seems addicted to cutting taxes. It calls for the state’s homestead exemption on non-school taxes to be boosted from $50,000 to to $150,000 in 2027 and $250,000 in 2028.
There are also cuts to non-homesteaded business properties and second homes. DeSantis convinced enough legislators to buck the interests of their constituents, including state Sen. Mack Bernard, D-West Palm Beach, a former county commissioner who should have known better but was a sponsor for the measure in the Senate chamber.
With scant time to consider the amendment’s merits, with no alternatives to replace monies lost from property tax revenue, without the benefit any real analysis by the state Revenue Estimating Conference that has already forecast budget shortfalls beginning this summer, the Florida Legislature left it up to the voters to clean up this constitutional mess. Given how unaffordable Florida is becoming, voters can be forgiven if they believe the cuts will be a boon.
It won’t.
State’s tax shift will hurt localities
Yes, over time, property taxes have gone up, a reality that comes with ever-increasing land and property values, rising costs to provide key services like police and firefighting, and changes to homestead exemptions that may cut costs for primary homeowners but raise taxes on small businesses, landlords and other commercial property owners.
This proposal will bring a tax shift ― more like a drastic change ― to the way local services that Floridians have come to rely on will be funded. Cities, counties, children’s services councils, first responders, health services, even water management districts ― local government programs that depend on property taxes and more importantly the constituents they serve will be left with revenue cuts without any viable options.
DeSantis and his tax-cutting acolytes apparently don’t care about options. They don’t seem moved about better informing the public about the impact of the cuts, either. Their goal is simple: Cut property taxes, period, full stop.
According to Florida Association of Counties analysis, the losses to Florida’s 67 counties was put at $3.5 billion in the first year and $6.3 billion in the second year when the homestead exemption increases. For Palm Beach County, those respective figures are $280 million and $523 million, the second-highest in the state behind Miami-Dade County.
The outlook isn’t much better for cities. By just raising the primary homestead exemption to $150,000, West Palm Beach will lose $25 million; Boca Raton, 13.4 million; Delray Beach, $14.4 million and Palm Beach Gardens, $14.2 million.
It will take 60% voter approval in November to make this tax shift a reality. If it does, localities would have to either increase taxes and fees and/or cut programs and services, decisions lawmakers passed off as tough choices facing local governments. Voters shouldn’t let that happen. Everyone may love a tax break, but this one has no real benefits.
DeSantis is approaching the end of his two terms as Florida governor, and he wants to cut property taxes significantly as a way of going out with a bang. Unfortunately, what’s being offered is a policy that will blow up in Floridians’ faces.
This article originally appeared on Palm Beach Post: Florida’s property tax cut debacle now before the voters | Editorial
Reporting by Palm Beach Post / Palm Beach Post
USA TODAY Network via Reuters Connect
