Wakulla County models multimillion-dollar shortfall if homestead property tax exemptions advance

WAKULLA COUNTY — Wakulla County officials spent a workshop Tuesday evening mapping how proposed state constitutional amendments to reduce or eliminate homestead property taxes could affect local services and budgets, but they emphasized that the county has no implementing bill and no formal decisions were made.

County staff presented a budget model for fiscal year 2025–26 showing the county is budgeted to collect $18,840,018 in property-tax revenue and that property taxes account for about 49% of general fund revenue. "Property taxes make up nearly 49% of our general revenue," Kelly Graves, county staff member, said while outlining the county’s revenue mix and restrictions on repurposing certain dedicated funds.

Michelle Metcalfe, a county staff presenter, summarized four proposals moving through the Legislature that would change how homestead property is taxed. "House joint resolution 201… [and others] would exempt homestead property from all ad valorem taxation other than school district levies or would expand exemptions for seniors or properties with insurance," Metcalfe said, noting the bills have passed multiple house committees and now sit in Ways and Means.

Staff modeling showed a county general revenue “bucket” of about $35.4 million; losing homestead collections was estimated to reduce expected revenue by about $9.4 million. "If we lost homestead property taxes, that's about $9,400,000," Graves said, adding that the sheriff's office budget alone is roughly $16.51 million.

Presenters and the county’s legislative liaison, Jim Spratt, stressed two linked uncertainties: whether the Legislature and governor will adopt an implementing bill that specifies how lost revenue would be replaced, and whether any replacement would protect fiscally constrained counties. "There is no implementing bill on any of these proposals," Chair Ralph Thomas said during the workshop, arguing the implementing language will determine what local governments can and cannot do.

The county’s analysis separated restricted revenue sources — grants, fuel taxes, special assessments and similar funds that cannot legally be used to plug general-fund gaps — from the unrestricted general fund. That means many popular services funded from general revenue are vulnerable to cuts if homestead revenue is removed. Staff estimated discretionary programs (parks, libraries, nonprofit contributions and similar items) account for about $3.2 million; eliminating those would still leave an estimated roughly $6 million shortfall if homestead were fully eliminated.

Speakers emphasized mandated services would be prioritized in any cuts. "Public safety is going to be at the top of the list," a commissioner agreed during discussion. Staff noted that some mandated functions are funded from the general fund (for example, certain court operations, jail costs and contributions to the health department), so choices about scope and scale of mandated services could be constrained by statute and by whatever implementing language the Legislature adopts.

County officials said the workshop’s purpose was informational and preparatory. "There’s no decisions here now," Chair Thomas said, inviting further public engagement and promising follow-up meetings as Tallahassee action unfolds. The board adjourned the workshop without taking formal action on policy.

What’s next: County staff said they will continue to refine impact analyses and present options for how to prioritize services or identify alternative revenue before any final local decisions are required.