County staff warns $6.9M–$10.6M annual hit if state homestead exemption change passes

Columbia County commissioners heard a legislative update from the county’s legislative coordinator outlining a property-tax package that will appear on the Nov. 3 ballot and could substantially cut local revenue if approved. The proposal increases the homestead exemption in phases (an initial $150,000 exemption in 2027 rising to $250,000 in 2028 and indexed thereafter) and tightens assessment limits for non‑homestead property; the state-level plan removes a governor-proposed backfill fund to replace lost local revenue.

Why it matters: staff told the board the county’s estimated revenue loss would be about $6.9 million in fiscal 2028 and roughly $10.6 million in fiscal 2029 if voters approve the constitutional amendment. That projection assumes voter approval of the measure and the specific indexing described by staff; the package only takes effect if voters ratify it at the ballot.

County staff urged commissioners to budget and plan as if the measure will pass. Commissioners discussed immediate and longer-term options to respond: (1) adopt an MSTU (a property-taxing unit) targeted at public safety and EMS; (2) pursue a voter-approved emergency fire-and-rescue sales surtax (state approval and a multi-step timeline would delay implementation until 2028–29 at the earliest); or (3) absorb cuts by reallocating or reducing existing services. Staff also recommended publishing clear budget breakdowns showing how property-tax revenue is allocated — including the sheriff’s budget share — to improve transparency ahead of public hearings.

On legal and timing constraints: staff advised that a county sales surtax requires a state review process and a 180‑day lead time before a general election, which would effectively push a sales-tax option into the 2028 general-election cycle and mean revenue would not be available until 2029. An MSTU can be established sooner but becomes politically complicated if a municipal government (the City of Lake City) opts out, because city opt-out reduces the taxed base and shifts more of the burden to unincorporated-area property owners.

Next steps: commissioners asked staff to prepare comparative analyses — projected revenues, timeline and equity impacts — for MSTU, sales surtax and reallocating existing funds, and to run budget scenarios that treat the coming fiscal year as if the loss were realized. Staff will present detailed charts and a recommended public-engagement plan ahead of the advertised public hearings later this month.