According to a City of Tallahassee budget workshop report, the proposed constitutional amendment approved by the Florida Legislature during a special session on June 1-2 could reduce property tax revenues for the City of Tallahassee by approximately $11.2 million in FY2028 and $17.8 million in FY2029. This means the proposed constitutional homestead tax amendment, if passed, would reduce the projected 2028 general revenue by approximately 4.8%. The general fund is currently projected to collect $238 million in revenue from several different sources in 2028.
The amendment, which will appear on the Nov. 3 general election ballot, would increase Florida’s homestead exemption for non-school taxes from the current $50,000 to $150,000 beginning Jan. 1, 2027, and to $250,000 beginning Jan. 1, 2028. The measure requires approval from at least 60% of voters statewide to take effect.
Property tax revenue is the primary funding source for Tallahassee’s General Fund and is projected to generate $77.7 million in Fiscal Year 2026. Those revenues fund approximately 94% of the Tallahassee Police Department budget, while also supporting parks and recreation, public infrastructure, children’s and adult services, and capital investments.
The projected losses represent a 13% reduction in taxable value in FY2028 and a 21% reduction in FY2029.
The proposal establishes a framework for future increases in homestead exemptions and directs the Legislature to create procedures that could eventually exempt all remaining assessed homestead value from taxation. City officials estimate that a complete elimination of homestead property taxes would create an annual funding gap of approximately $36 million, equivalent to about 40% of the City’s current property tax revenue and 10% of the general fund revenue.
Supporters of the amendment argue it would provide meaningful tax relief to homeowners. However, City officials note that the benefits would be limited to residents receiving a homestead exemption. Of approximately 89,000 households within Tallahassee city limits, about 25,500 households, or 28.6%, would directly benefit from lower property taxes.
The remaining 71% of households, many of them renters, would receive no direct tax reduction while continuing to contribute indirectly to property tax collections through rental payments. As a result, city officials contend that a majority of residents would continue paying for municipal services without receiving the proposed tax savings.
The amendment also would impose a five-year Florida residency requirement for new residents seeking the enhanced homestead exemption and would authorize local governments to adopt additional exemptions under certain circumstances.
City leaders say the recently implemented Voluntary Separation Incentive (VSI) program represents an important step toward preparing for potential future budget constraints if voters approve the amendment.
The proposed measure is expected to generate significant debate in the months leading up to the November election as local governments across Florida evaluate the impact of reduced property tax revenues on public safety, infrastructure, and other core services.
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