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Officials warn proposed state property-tax changes could cut St. Johns County revenue by tens of millions
Summary
County budgeting staff told commissioners the state's proposed property tax reform (expanded homestead exemptions and caps) could reduce local property-tax revenue by an estimated $60M in FY28 and $113M in FY29, and commissioners asked staff to prepare fact sheets and scenario options for voters and policy planning.
County budget staff told the Board of County Commissioners that proposed state property-tax reforms under consideration in the special session would substantially reduce St. Johns County's ad valorem revenue and require the county to re-evaluate service levels and funding sources.
Wade Schroeder, director of the Office of Management and Budget, briefed the board on the components of the legislation as it stood: expanded homestead exemptions (rising to $150,000 in 2027 and $250,000 in 2028), 5% assessment caps on non-homestead property and restrictions on permitted uses of ad valorem revenue (public safety, roads/bridges/stormwater, natural resources/flood control, debt service, retirement benefits, and county/constitutional officer operations). Schroeder said that estimates by the Florida Association of Counties suggested the county could lose roughly $60 million in FY28 when the first exemption expansion takes effect and $113 million in FY29 from the larger expansion.
Schroeder presented a breakdown of how the county currently uses roughly $400 million in property-tax revenue: nearly 30% for the sheriff's office, roughly 27% for fire and EMS, and 13% to roads/transportation; the county also funds parks, facilities, general government and social services from property-tax revenues. He stressed that more than half of property-tax revenue is dedicated to public safety services.
Commissioners asked staff to prepare public-facing fact materials explaining the likely fiscal impact and the choices that would follow if the constitutional amendment appears on the November ballot. Commissioner Whitehurst proposed a concise fact sheet showing the arithmetic example (subtract the forecasted $113M from total property-tax revenue and illustrate remaining funds for public safety and other services). The board gave consensus for staff to prepare that outreach and analysis.
County Administrator Joy Andrews said departments are already preparing for scenarios: a review of tiered service levels, a pause on uncommitted long-term encumbrances and hiring freezes for positions not yet offered, and a review of fee schedules and privatization/P3 options. She cautioned that staff will need time to present options to the board if the measure passes.
What comes next: staff will prepare a public fact sheet and internal service-level and fee options; commissioners asked for additional budget and policy briefings in the coming weeks as legislative action proceeds.
