Florida property tax cut would cost Manatee County $230 million, officials say
If Florida’s proposed property tax referendum passes this fall, it could mean at least $230 million in lost revenue for Manatee County over two years.
Manatee County leaders began early budget talks this week, and the potential loss in property tax revenue drove most of the discussion. In May, Gov. Ron DeSantis called for a special session of the state legislature to consider a constitutional amendment that will be on the ballot this November.
The proposal would raise the homestead exemption from $50,000 to $150,000 in the first year and $250,000 in the following year. If approved in November, the first year of the new exemption would be in 2027.
“Property tax revenue collected by local governments has nearly doubled in the past seven years and is expected to reach an astounding $83 billion by 2032,” DeSantis said in a press release. “Florida homeowners need relief. Now is the time to stand up for taxpayers, enact a historic reform and save the home of every Floridian.”
County staff estimate that, with the homestead exemption raised to $150,000, it would result in an $81 million reduction in revenue for the county in the first year. The following year, when the exemption would be raised to $250,000, the county expects to lose $149 million.
Of the county’s estimated $1.4 billion revenue for FY27, about $493 million is expected to come from property taxes. The property tax revenue funds departments like the sheriff’s office, tax collector, clerk of court, supervisor of elections and animal welfare with property tax revenue.
The homestead exemption changes are still pending approval by the legislature to be placed on the ballot, which then would need to be approved by 60% of Florida voters in November.
The property tax savings for Manatee County homeowners could mean reductions in services and government jobs as officials brace for reduced revenue. Commissioners said they can’t ignore that possibility while planning for upcoming budgets.
“I think it’s relevant for people to understand the mindset we have going into this week…we have to assume that this is going to pass in November,” Commissioner George Kruse said. “I like to think it’s not. I think more than 40% of people understand the negative ramifications of it, but we have to assume it does.
“The last thing people want us to do is take all their money this year and burn it in design work and planning work…and then it does pass,” Kruse continued. “Now we just burned a lot more money for no reason, because now we have to pull back on those after November.”
