05/29/2026
TALLAHASSEE, Fla. — A proposed special legislative session on property tax reform is generating significant concern among county governments throughout Florida, as local officials warn that the sweeping changes could dramatically reduce funding for essential public services while limiting local control over future budgeting decisions.
The proposal, which is expected to be considered during a special session later this year, includes several major changes to Florida's property tax system. Supporters argue the plan would provide tax relief to homeowners, but county leaders and public finance experts caution that the long-term consequences could weaken local governments' ability to fund public safety, infrastructure, libraries, parks, elections, and other critical services.
Among the most significant provisions is the creation of a new homestead exemption that would increase to $150,000 in 2027 and $250,000 in 2028. The exemption would apply to all property tax levies, including school districts, and would be followed by a legislative phase-in plan aimed at eventually eliminating portions of the property tax revenue stream altogether.
County officials note that while homeowners may see short-term savings, the reduction in taxable property values would permanently shrink the local tax base. The proposal also includes automatic annual inflation adjustments to the exemptions, meaning local governments would lose additional revenue every year without any mechanism to recover those losses.
The legislation would also reduce the assessment cap on non-homestead properties—including commercial real estate, rental properties, and second homes—from 10 percent to 5 percent annually. Local government advocates warn that this change would further limit revenue growth in rapidly developing communities where population growth continues to increase demand for services.
Another provision would require new Florida residents to live in the state for five years before qualifying for the expanded homestead exemption. While intended to prioritize long-term residents, critics argue the measure could create unequal treatment among taxpayers and complicate property tax administration.
Perhaps most concerning to county governments is a proposal to limit local millage rates by tying maximum rates to the rolled-back rate rather than the current statutory formula. The rolled-back rate is designed to generate the same amount of revenue as the previous year, excluding new construction. Local officials argue that as inflation, labor costs, and service demands increase, counties would have fewer tools available to respond.
The proposal would also place constitutional restrictions on how county and municipal ad valorem taxes may be used, limiting spending to six designated categories. Critics say the list excludes numerous services currently funded through local property taxes, including libraries, parks, animal control, affordable housing programs, community healthcare initiatives, veteran services, supervisors of elections, tax collectors, property appraisers, clerks of court, and Medicaid-related obligations.
Local government advocates point out that Florida voters have historically approved nearly 90 percent of local tax and bond referendums. Under the proposed framework, many of those decisions could no longer be made by local voters.
Law enforcement leaders are also examining the proposal's potential impact. While public safety remains one of the protected spending categories, concerns remain that funding levels could effectively be capped at or near current levels. By 2030, sheriffs' offices could find themselves attempting to meet growing demands with budgets that have not kept pace with inflation, population growth, or increasing service calls.
To address anticipated revenue losses, the proposal would create a state trust fund designed to provide financial assistance to local governments. However, many key details—including funding sources, eligibility requirements, distribution formulas, and long-term sustainability—would be determined by future legislative action.
County officials argue that the creation of a state-funded backfill program serves as recognition that local governments cannot absorb the proposed revenue reductions on their own. They also express concern that reliance on future state appropriations could reduce local fiscal independence and create uncertainty during annual budget planning.
As discussions continue in Tallahassee, county leaders across Florida are urging residents to closely follow the debate and consider how the proposed changes could affect local services. While property tax relief remains a popular goal among many homeowners, local governments warn that any reform must carefully balance tax savings with the need to maintain public safety, infrastructure, emergency management, parks, libraries, and other services that residents depend upon every day.
The special session has not yet convened, but the proposal is already shaping up to be one of the most consequential debates over local government funding in Florida's modern history.
