A controversial Florida constitutional amendment on the November ballot aimed at slashing property taxes would minimally impact Palm Beach in the near future but could ultimately lay the foundation for eliminating those taxes outright.
That was the message — presented as a warning — Democratic State Rep. Emily Gregory gave Palm Beach’s Town Council during a July 14 discussion centered on the referendum. Gregory represents District 87, which includes Palm Beach, in the Florida House.
If passed, the property-tax amendment would significantly increase homestead exemptions and slash the annual assessment cap for non-homestead properties.
The proposed amendment would raise the homestead exemption on non-school taxes from $50,000 to $150,000 in 2027, and to $250,000 in 2028, Gregory said. But the proposal contains language that would allow legislators to order a “uniform procedure” for counties, municipalities and special districts.
Gregory said that if the amendment passes, its language could lay the groundwork for eliminating property taxes outright.
Two days later, during a July 16 Town Council budget workshop, Deputy Town Manager Bob Miracle expanded on that theme.
“They can add language to that bill that will have further impacts, and if they do anything (more), it will be impactful for the town,” Miracle said during the workshop.
Eliminating all property taxes would spell disaster for hundreds of local governments like Palm Beach, which acquire the bulk of their funds through the revenue brought in by property taxes, Miracle said July 16. Property taxes make up 68% of the town’s overall revenue, he noted.
Legislators have held little discussion or planning as to how the state would supplement local government budgets if the amendment passes, Gregory told the council July 14. There was no fiscal-impact analysis presented when the bill was being debated in the Legislature’s last session, she said.
At that meeting, Town Manager Kirk Blouin sounded expressed dismay at the Legislature’s actions. “It’s shocking that they would do this blindly without another plan in place,” he said.
The meeting marked Gregory’s first appearance before the Town Council. She made national headlines after she won a special election March 24, flipping the District 87 seat blue after defeating Republican Jon Maples. Maples had been endorsed by President Donald Trump for the district that includes Trump’s own residence at Mar-a-Lago. Her seat had been vacated by Republican Mike Caruso after Gov. Ron DeSantis appointed him to succeed Joe Abruzzo as Palm Beach County’s clerk and comptroller. The seat will be in play again this November during the regular election cycle.
Gregory voted June 26 against the bill to send the property-tax amendment to referendum. The measure passed the House in a 75-26 vote and the Senate in a 30-9 vote. Getting the proposed amendment approved had been a major priority for DeSantis.
At the July 14 meeting in Town Hall, Council President Pro-Temp Lew Crampton said the Legislature’s lack of attention to the repercussions of the referendum was akin to “kabuki theater,” adding that state lawmakers were more focused on proving “their qualifications as property tax cutters.”
“Frankly, it demonstrates the disconnect between the Legislature itself and ‘home rule,'” he said, using a phrase that denotes a municipality’s right to self-govern.
While the tax reductions in the amendment would have a relatively minor impact to Palm Beach — around a 3.6% decrease to the town’s property tax revenue, once the $250,000 homestead exemption is in place — the move would still require Palm Beach to make some uncomfortable decisions, officials at the meetings agreed.
Those could include budget cuts to the town’s services and departments, Miracle noted during the July 16 meeting. According to a graph he presented, those cuts might include a more-than 24% reduction to the Palm Beach Police Department’s budget while slashing more than 21% from the Public Works’ budget.
To combat the loss of funding, the town could look at means of increasing revenue, which might entail more-expensive fees paid by residents and visitors alike. Specifically, Miracle said the town also could consider increasing parking fees, building fees and recreation fees.
One of the suggested options policies drew the support of Council Member Bridget Moran, who said that increasing parking fees might reduce the amount of out-of-town traffic coming to the island. She thought the town should do all it can to make up the budget loss, should the referendum pass.
“I’m not sure we can handle a 3% (revenue) reduction, because we wouldn’t be (in favor of) taking out of any public safety (measures), and what it will affect most is Public Works,” she said. “Can you imagine living in Palm Beach and not picking up garbage every day from residents? We’re Palm Beach — we’re all about services. It’s what we do.”
Miracle said if the referendum passes, the town could also investigate increasing its tax rate to make up the 3% reduction resulting from the $250,000 homestead exemption and a reduced assessment cap on non-homesteaded residences.
Raising the tax rate would mark the first time the town has done that in nearly a decade, according to a July 16 Town Hall staff presentation.
Gregroy is running for re-election in November. The Democratic primary was canceled for that race.
She will face the winner of the Aug. 18 Republican primary, in which Maples will face Jonathan Rubin.
Story was updated to change a photo.
Diego Diaz Lasa is a journalist at the Palm Beach Daily News, part of the USA TODAY Florida Network. You can reach him at dlasa@pbdailynews.com.
This article originally appeared on Palm Beach Daily News: Lawmakers may try to kill property tax, State Rep. warns in Palm Beach
Reporting by Diego Diaz Lasa, Palm Beach Daily News / Palm Beach Daily News
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By Diego Diaz Lasa, Palm Beach Daily News | USA TODAY Network
