Florida lawmakers are advancing proposals to phase out non-school homestead property taxes, a move local government officials and analysts say could push cities and counties to rely more heavily on fees and special assessments to replace lost revenue, with significant budget implications for cities such as St. Petersburg.
According to the Florida Institute of Certified Public Accountants, if approved, House Joint Resolutions 201 and 203 would either fully exempt homestead property from non-school levies or gradually phase out those taxes over a decade, while other proposals would expand exemptions for seniors or broaden portability of tax benefits.
While the reforms are intended to provide property tax relief, analysts warn they could have outsized effects in high-growth cities like St. Petersburg, where infrastructure demands and utility costs are already rising. A Naples Daily News analysis cautioned that without replacement revenue, local governments could be forced to cut services, including public safety.
St. Petersburg officials have warned the proposed changes could result in a “tax shift” to businesses and renters, compounding affordability pressures driven by rising property values and insurance costs. City Council Chair Lissette Hanewicz said there is no clear plan for offsetting the potential revenue losses, according to the St. Pete Catalyst.
“There is no plan for how this lost revenue will be offset,” Hanewicz said.
The revenue uncertainty comes as the city is considering a $614 million bond for stormwater and wastewater upgrades that could require voter approval through a property tax referendum, according to Fox 13 Tampa Bay. City leaders are also exploring the possible municipalization of Duke Energy’s local electric utility.
A Florida Politics report said such a move could carry acquisition and litigation costs exceeding $1 billion, while also eliminating an estimated $52 million in annual franchise fee and utility tax revenue currently paid by Duke Energy, potentially increasing pressure for additional local taxes if the effort advances.
