CENTRAL FLORIDA — Cities and counties across Central Florida are trying to figure out how property tax reform could affect them and what services they might need to cut if the measure advances.
The bill passed Tuesday gives voters the chance to decide whether to give Floridians a much larger tax exemption on their homes and eventually get rid of property taxes altogether.
Channel 9 reached out to each of the nine Central Florida counties in the viewing area to learn about the potential impacts on their services.
The measure needs to be approved by 60 percent of voters to take effect. If approved, it would expand Florida’s homestead exemption from $50,000 to $150,000 in 2027 and $250,000 in 2028.
Tax analysts believe homeowners would save an average of $3,000 per year under the plan, providing relief to families stretched by rising costs and a slowing job market.
But county leaders are warning if the measure is approved, they will have no choice but to make cuts.
Orange County Government says with the $250,000 homestead exemption, they expect to lose about $270 million in property tax revenue annually.
“Services will be cut, there’s no way around it.” said Orange County Mayor Jerry Demings, “Between now and November, what local governments all across the State of Florida will be communicating with their residents is very specific reductions, and how it will impact their daily lives.”
While most counties told Channel 9 it’s too early to make decisions on potential cuts, those who support the plan, including Governor DeSantis, cite the inflated local budgets compared to their pre-pandemic levels.
But local leaders say that increase coincides with inflation, rising personnel costs, and community growth.
As a result, this year, the Orange County Sheriff’s Office is requesting about an $88 million dollar increase to their operating budget, citing the need for new technology and equipment to provide public safety.
“$88 million in one year, that’s a lot and that’s just one entity. You have several other entities that are having budgetary challenges that they have to address,” explained Orange County Commissioner Mike Scott.
Scott explained the county budget is already under pressure, but difficult decisions would need to be made if the ballot measure is approved.
According to Orange County, 38 cents of every dollar received in property taxes goes to fund the Sheriff, Corrections, and the Office of Emergency Management/Fire Communication. The remaining amount goes toward community and family services, housing, administrative services, and the Lynx bus system among other costs.
Commissioner Mike Scott told Channel 9 he was torn on the issue. “I want property tax relief. So part of me is excited for it, but the other part is like, I know what it pays for,” said Scott.
The Florida League of Cities has warned some local governments could have no choice but implement higher sales tax or new fees.
The organization states: “Eliminating our ‘Floridians First’ property tax system won’t be a tax cut. At least, not for Floridians. It will be a tax shift that moves costs onto full-time Florida homeowners through higher sales taxes, new fees, or reduced local services.”
According to a Florida League of Cities analysis, if approved 85 Florida cities could need to make major changes to their police and fire services.
The analysis found even if the cities cut every other service funded by property taxes, they would still need to make cuts to public safety. Those cities include Apopka, Belle Isle, Clermont, Kissimmee, Lake Mary, St. Cloud, Titusville, Winter Garden, Cocoa, Edgewater, and Ocala.
Local leaders including Scott and Demings worry that smaller communities may not be able to survive the property tax reductions.
“Those very small cities and communities, the overwhelming majority of people that live in those localities wouldn’t pay taxes,” said Demings, “Some of them would be in a situation where they look at if they remain in a charter or township. And if they choose not to, then the services they require would be passed onto the county.”
Here’s how other Central Florida Counties say they could be impacted:
Osceola: “While the proposal passed by the Legislature still requires voter approval this November, the County has already begun evaluating the potential impacts of the proposed amendments to the Florida Constitution, significantly decreasing available ad valorem dollars for public services. The County Manager is currently preparing his recommended budget for the upcoming fiscal year and will present it for consideration later this summer. As part of that process, County management will provide Commissioners with the necessary information and data to fully assess potential impacts so that the Board can make informed decisions regarding future service levels and expenditures. At this time, it would be premature to speculate on what exact services may be impacted or what recourse the Board may take until Commissioners have had the opportunity to consider all available options.” - Director of Communications, Tyler Winik
Volusia: “ Volusia County is already evaluating how the proposal could affect County operations and the delivery of local services. As part of that process, staff is reviewing the potential fiscal impacts and exploring a range of operational and financial considerations so elected officials and the public have a clear understanding of available options should the measure be approved by voters. Based on a preliminary analysis, a $250,000 homestead exemption could reduce County revenues for operations and services by approximately $92.8 million annually. Current estimates also suggest that, after funding state-mandated services and obligations, the County will still face an estimated $17.7 million budget shortfall. Because the proposal remains subject to voter approval and many implementation details are still unknown, it would be premature to speculate on specific service changes, funding decisions, or future fee structures.” –Volusia County Director of Community Information, Michael Ryan
Seminole: “ As a result of the decision in the legislature, I have scheduled a meeting with the County Manager and Deputy County Manager, as well as our budget team, to begin the work to determine the impact on the services we provide. As with all new legislation, our team will take time to deeply understand and then move to our full board to take action publicly to create the best possible outcome for our citizens. As always, we will be transparent with the community as we learn more, with discussions starting as soon as possible.” – Seminole County Chairman, Andria Herr
Sumter: “Sumter County respects the decision of the Legislature proposing the ballot question to substantially increase homestead exemptions for non-school property taxes as part of their quest to eliminate property taxes. We will also honor the decision of the voters denying or approving the ballot question. The scenario based on an assumption of either a denial or approval of this ballot measure, as well as impacts to services, will be part of the budget discussion with the Sumter County Board of County Commissioners in July following the preparation and presentation of the proposed budget for fiscal year 2026/2027.” - County Administrator, Bradley Arnold
Lake: “Lake County is currently reviewing details. Because of that, it’s not appropriate for us to conduct interviews. Once we have substantive information to share with the public, we’ll be glad to revisit your request,” – Spokesperson, Lake County.
Flager: Received Channel 9s request. Staff is working on gathering more information.
Brevard: No comment as of news time.
Marion: No comment as of news time.
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