County faces $3M revenue loss due to proposed property tax changes

Monroe County officials are bracing for significant revenue losses due to proposed changes in property tax growth regulations, as discussed in the recent Monroe County Council Long-term Finance Committee meeting on February 21, 2025. The anticipated changes could lead to a staggering $1.4 million revenue shortfall for the county in 2026, escalating to $2.6 million in 2027, and nearly $3.6 million by 2028.

The committee highlighted that the current legislation caps the annual growth quotient for property taxes at 4% for 2024 and 2025, a reduction from what could have been closer to 5%. More concerning is the proposal to set the growth quotient to 0% for 2026, followed by just 1% in 2027 and 2% in 2028. This drastic limitation means that the county could miss out on over $1 million in potential property tax revenue in 2026 alone.

Committee members expressed their concerns about the broader implications of the bill, which also alters assessment methods and homeowner deductions, further complicating the financial landscape for the county. The total estimated revenue loss from these changes is projected to ramp up significantly over the next few years, prompting officials to engage with state legislators to mitigate the impact.

The discussion also touched on the county's general fund levy, which has increased from $17 million to $21 million. However, there remains uncertainty about whether the county will be allowed to reclaim lost revenue from previous years, a situation that could further complicate financial planning.

As the committee continues to analyze the potential impacts of the proposed legislation, they emphasize the need for vigilance and proactive communication with state representatives to protect the county's financial health. The outcomes of these discussions will be crucial for Monroe County's budget and service delivery in the coming years.