Lake City opts out of Live Local Act tax exemption, city leaders cite local control and housing supply analysis

The Lake City Council voted to opt out of the property-tax exemption provided under the state’s Live Local Act, adopting Resolution 2025-042 during Monday’s meeting.

City Attorney Clay Martin explained the opt-out applies only to the Live Local Act’s tax-exemption provision. He said the statutory opt-out is permitted where a demographic study — in this case conducted for the Northeast nonmetropolitan area that includes Columbia, Gilchrist and Levy counties — finds a surplus of affordable units in the statistical area; staff cited that finding as the basis for the city’s available opt-out.

Councilmembers and staff warned that staying in the Live Local program could partially remove local review and public input for qualifying projects and possibly result in overdevelopment or environmental issues, and they questioned whether the exemption would substantially advance affordable housing locally. Councilmember Roosevelt said the measure would amount to a reduction of home-rule authority: “It’s just another attempt to take a fight out of home rule,” he said.

Public commenters asked whether opting out would limit tools for encouraging affordable housing. One commenter, Erica Winsford, said she supported affordable-housing options and wanted to understand all available tools. City Manager Rosenthal and others noted the opt-out applies only to the tax-exemption component; the decision is a policy choice, not a ban on affordable housing programs.

By roll call, the council approved Resolution 2025-042 to opt out of the Live Local Act tax exemption.