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Citrus County budget staff warns commissioners of multimillion‑dollar hit if state homestead exemption changes pass
Summary
County budget staff told commissioners a House proposal to expand the homestead exemption could reduce Citrus County property tax revenue by an estimated $54.8 million in the first affected year, leaving roughly $6.9 million in discretionary funds and prompting discussion of options including holding millage, sales‑tax referenda, or MSBUs.
Citrus County budget staff on March 10 warned the Board of County Commissioners that a state‑level change to the homestead exemption could crater local revenues and force major cuts. Tammy (budget presenter) told the board that under one widely discussed legislative proposal the county could lose about $54.8 million in property tax revenue in the first year it took effect, a shortfall that would reduce discretionary funding to roughly $6.9 million.
The warning came during a detailed budget briefing in which staff reviewed the county’s $182 million general‑fund picture, the share of revenues the commission actually controls, and the potential policy levers to respond. "If we take away $54.8 [million], that's leaves us about $6,900,000 to run the county," Tammy said during the presentation (budget presentation, March 10). She noted that the estimate is based on currently circulating legislative language and that the precise fiscal impact depends on what ultimately reaches the ballot or becomes law.
Why it matters: commissioners stressed the need to preserve public safety and essential services while keeping taxes stable. Several members said they preferred holding the current millage at least for planning purposes; others pressed staff to model options that include a voter‑authorized sales surtax or formation of MSTUs (Municipal Service Taxing Units) to shift targeted costs. Commissioner Jeff Kennard and others urged staff to test a 1¢ sales tax focused on pavement management with a smaller conservation allocation as an alternate revenue package. Trust for Public Land staff later that day said May 7 is the deadline to submit a sales‑tax request for the 2026 ballot.
Board response and next steps: The commission gave staff direction to prepare budget scenarios that reflect both the House‑passed proposal and more modest alternatives, including sales tax and MSBU options. Commissioners also asked for clearer rollups of department budgets and for constitutional officers to disclose any salary changes when they present their budgets, so the board can better assess true operating costs and potential savings. Tammy and county staff committed to presenting both a no‑increase scenario and a scenario with higher COLA assumptions for comparison.
What’s next: staff will return with modeled budgets and millage scenarios before the April CIP workshop and ahead of July's tentative millage setting. The county emphasized that the legislative process is still active and that final decisions will await more definitive state action.
