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Florida’s new property tax cuts could defund the police, fire fighters and EMS in small towns, threatening ‘rural dark ages,’ former GOP lawmaker says

Fortune
Florida’s new property tax cuts could defund the police, fire fighters and EMS in small towns, threatening ‘rural dark ages,’ former GOP lawmaker says

The blue tsunami that swept across the country on election day petered out in Florida, where voters continued to elected Republicans to statewide offices and approved a massive cut to their property tax bills.

Amendment 3 expands the so-called homestead exemption, shielding more of a home’s assessed value from taxation. It will nearly triple from $51,400 currently to $150,000 in 2027 and increase again to $250,000 in 2028.

It also lowers the cap on annual assessments on rental and commercial properties from a 10% hike to 5%. The amendment doesn’t apply to school-related property taxes but creates a path for abolishing non-school property taxes completely.

State economists have projected that local governments will lose nearly $5 billion in the first year and nearly $12 billion a year once the exemption is fully phased in.

But while Amendment 3 requires remaining tax revenue go toward public safety and other local services, it doesn’t mandate that police, fire and emergency medical services be funded first or that they receive a minimum level of funding.

Proponents argued that lowering property tax bills would provide relief as higher inflation worsens the cost of living. But sheriffs, police chiefs, fire chiefs and local government officials came out against the plan as they face a steep hit to their budgets.

To be sure, local governments can raise revenue in other ways, such sales taxes and fees. But they can crash in bad economic times and are unlikely to completely offset losses from Amendment 3.

“In the end, though, essential services would still almost certainly be affected,” University of Tampa economists Abigail Hall and Aaron Wood wrote in the Conversation. “Funding for police, fire and emergency medical services is primarily the responsibility of local governments, and, for most counties, they make up the largest line item in their annual expenditures. Reducing property taxes would amount to a direct hit, especially in smaller, less-populated counties.”

Leading up to election day, Pinellas County Sheriff Bob Gualtieri estimated the county’s general fund could lose about $180 million in the first year after the measure passes, adding that the sheriff’s office accounts for half of the county’s spending, which mostly covers personnel costs.

That means the county could have fewer deputies available to respond to calls, with community policing programs, marine patrols and K-9 units also facing cuts, he warned. In addition, the county’s emergency medical services fund could suffer a $20 million reduction.

“I think there’s no doubt — zero — that there has to be position cuts,” Gualtieri told WLRN last month.

Outgoing Florida Gov. Ron DeSantis, who backed Amendment 3, has dismissed such warnings as “fearmongering” and suggested state grants could offset any budget shortfalls to local agencies. Florida Realtors, another backer, insisted the measure could be implemented without compromising the essential services.

Original Headline

Florida’s new property tax cuts could defund the police, fire fighters and EMS in small towns, threatening ‘rural dark ages,’ former GOP lawmaker says