Housing Manager Dylan Mayhew presented a council item on Dec. 1 recommending that the city opt out of the "missing middle" property tax exemption created by the Live Local Act for tax year 2026. Mayhew cited "Section 196 dot 19 78 of Florida Statutes" and the most recent Schimberg Center for Housing Studies report, which staff said identifies a surplus of affordable units for households earning between 80% and 120% of area median income in the Tampa‑St. Pete‑Clearwater metropolitan area.

Under state law, local governments may opt out for a tax year if the Schimberg Center report demonstrates a surplus in that affordability band. Mayhew recommended adopting a resolution to opt out for calendar year 2026; staff said the action would notify the Pinellas County property appraiser and automatically expire on Jan. 1, 2027 unless renewed by council.

Council members asked whether the decision would affect current projects and were told staff would follow up with specific project impacts. Staff recommended adoption and council provided direction consistent with the staff recommendation; the resolution was presented for council action.