Boca Raton staff outline $16.7 million hit if Florida property-tax amendment passes

City staff presented a detailed fiscal review on Tuesday of a proposed state constitutional amendment that would expand homestead exemptions and alter local millage calculations, a change the city estimates would trim Boca Raton taxable base by about 11% and reduce city property-tax revenue by roughly $16.73 million if fully implemented.

The presentation, led by finance staffer Mr. Zervis, summarized House Joint Resolution 1F (HJR1F) and companion implementing language in Senate Bill 4F (SB4F). Under the measure, the statewide ballot proposal would raise the non-school homestead exemption in two steps to an initial $150,000 effective Jan. 1, 2027, and then to $250,000 a year later, with a five-year waiting period for new residents. SB4F, staff said, adjusts the mechanics the state uses to compute a local jurisdiction maximum millage rate calculation and reduces the non-homestead growth cap from 10% to 5%.

"This would reduce our taxable value by roughly 11% in the two-step scenario," Mr. Zervis said, presenting city examples that compared long-held homesteads and recent purchases. He showed one long-term homestead property tax bill dropping from about $5,000 to roughly $2,900 a year, a 42% cut for that homeowner, while a more recently homesteaded property would see the same dollar savings but a smaller percentage reduction.

Staff projected an estimated $8.14 million revenue loss in the first step and about $16.73 million total when the amendment is fully phased in, representing about 11.56% of city property-tax revenue and roughly 6.1% of general-fund expenditures. "Those are important numbers when you think about the overall impact on the city's general fund operations," Mr. Zervis said.

Council members and residents focused on trade-offs. Council Member Drucker urged protecting public safety, noting the city spends about two-thirds of its general fund on police and fire. "One minute could save a life," she said, arguing service reductions could carry direct public-safety consequences.

Public commenters were split. Mike Liebelson, a mayoral candidate, told the council that the change would "reduce property taxes by $2,136 per year" for many families and urged the council to support property-tax relief to improve affordability. Others, including Pam Paschke and Alexander Lambrettas, warned the change would shift the burden to commercial properties and renters, potentially raising rents and eroding services in smaller, lower-income Florida cities.

Staff outlined policy tools the council can consider to respond: using reserves, pursuing strategic budget reductions, raising the millage rate (staff estimated an approximate 12% millage increase would replace the lost revenue), expanding or raising user fees, adjusting non-ad valorem assessments, or capturing additional CRA tax increment. "We have time to plan," Mr. Zervis said, urging discussion at an upcoming June 18 budget workshop.

When asked about residency eligibility, staff said residents who live in Florida prior to Dec. 31, 2026, would qualify immediately for the larger exemption when they buy a home; newcomers after that date would face the five-year waiting period.

Next steps: the council scheduled a June 18 budget workshop to consider budget scenarios and asked staff to return with requested follow-up details (RFQ postings, clarifications on examples and reserve levels). The amendment goes to the statewide ballot and would require a 60% statewide vote to pass; if approved it would take effect Jan. 1, 2027.

Provenance: Topic begins with staff presentation (SEG 311) and runs through council reaction and public comment (SEG 1175SEG 1793).