County commissioners vote to object to homestead tax exemption plans
The Lee County Board of County Commissioners voted today to oppose the homestead property tax exemption proposal of Gov. Ron DeSantis that is currently in front of the state legislature, unless the revenue losses for local governments can be replaced with “stable, recurring replacement funding sources.”
The county projects that the bill could cause a property tax revenue loss of $129.7 million in next year’s budget and a $240.8 million loss in the 2028-29 budget.
The proposal from Gov. Ron DeSantis to amend the state Constitution would raise the current property tax exemption for homestead property owners from $50,000 of their assessed property value to up to $250,000 of the property’s value.
The proposal would require approval from the state legislature and then 60% of voters would need to approve the constitutional amendment in November.
The following is an excerpt from the letter sent to State Senate President Ben Albritton, whose district includes part of northern Lee County, and State House Speaker Daniel Perez, on Tuesday.
“State fiscal analyses indicate that the proposed constitutional amendments could reduce local government ad valorem revenues by billions of dollars annually beginning in 2027. These proposals represent one of the most significant restructurings of local government finance in Florida’s history and warrant careful consideration of their long-term impacts on communities throughout the state.
For Lee County, the projected fiscal consequences are severe. Based on estimates utilizing data from the Florida Ad Valorem Revenue Estimating Conference, Lee County faces a projected revenue loss of approximately $129.7 million in Fiscal Year 2027-28. By Fiscal Year 2028-29, that annual loss is projected to increase to approximately $240.8 million.
Property taxes are the fiscal foundation of our local governments, accounting for nearly 79% of statewide municipal general fund tax revenues. Because public safety represents the largest expenditure category for most local governments (~56% state-wide), reductions of this magnitude would inevitably affect service levels, response capabilities, and long-term community investments.
These concerns are particularly acute in Lee County. Our community has experienced extraordinary population growth over the past decades, creating increasing demands for public safety services, transportation infrastructure, parks, libraries, and other public facilities. At the same time, Southwest Florida continues to recover from and prepare for major hurricane events, requiring sustained investments in emergency management, stormwater infrastructure, flood mitigation, resiliency initiatives, and disaster recovery capabilities. The fiscal flexibility to address these challenges is critical to protecting both residents and the state’s economy.
Importantly, these proposals do not eliminate the cost of providing the services and infrastructure that make Florida’s communities desirable places to live and do business. Substantial reductions in homestead property tax revenues will increase reliance on a narrower tax base, placing greater pressure on non-homesteaded residential properties, commercial properties, and other revenue sources. The resulting impacts could negatively affect renters, employers, workforce housing, and local economic competitiveness.
These proposals may also weaken the stability and predictability of local government revenues that credit markets rely upon when evaluating municipal debt. Any resulting increase in borrowing costs would make critical investments in public infrastructure more expensive for taxpayers over the long term.
Lee County and our municipalities have consistently demonstrated fiscal responsibility by reducing millage rates when property values have increased and by carefully managing taxpayer resources. We support efforts to improve affordability for Florida residents, but those efforts must be balanced with the need to maintain safe communities, resilient infrastructure, and high-quality public services.
We respectfully urge the Legislature to preserve local fiscal home rule and oppose any proposal that significantly reduces local ad valorem revenues without providing stable, recurring replacement funding. We welcome the opportunity to work collaboratively with you on solutions that deliver meaningful taxpayer relief while preserving the fiscal capacity necessary to maintain essential public services and infrastructure.”
To reach Nathan Mayberg, please email nmayberg@breezenewspapers.com