Property appraiser warns county leaders the proposed homestead-exemption amendment could cut ad valorem revenue by hundreds of millions

Dorothy Jacks, Palm Beach County property appraiser, told the Board of County Commissioners on July 7 that a proposed state constitutional amendment increasing homestead exemptions would substantially reduce the county’s ad valorem tax base.

"In 2027, the first year of the $150,000 exemption, that number would go to $221,000,000," Jacks said. "And in 2028, when the homestead would go to $250,000, that number goes up to $324,000,000." She told commissioners those calculations are based on 2025 values and that outcomes would vary with future valuations and millage-rate decisions.

The appraisal office provided several data points the board pressed for: roughly 733,000 housing units countywide, about 369,000 homesteads, and parcel groupings by assessed-value bands (about 14,000 homesteads below $50,000; 92,000 under $150,000; 178,000 under $250,000). Jacks said the county levied about $1.5 billion in property taxes in 2025 and that homestead exemptions previously reduced collections by about $90 million.

Commissioners asked how the losses would affect local services and special districts. "Everything that is ad valorem — the library, parks, South Florida Water Management District, the health care district — they’re affected," Jacks said. She emphasized the school board’s revenues are being held harmless in the current amendment text and that non‑ad valorem assessments (fees and assessments tied to special districts) operate under different rules.

Several commissioners flagged distributional concerns. Commissioner Flores said the likely pass-through of increased costs to renters and small businesses worries her because "our teachers and some firefighters can barely afford an apartment." Commissioner Powell argued the county must educate voters but refrain from advocacy. Administrator Abruzzo and others warned the practical consequence of a large revenue shortfall would be to raise millage rates on non‑homesteaded properties or expand non‑ad valorem assessments — both outcomes that could fall on renters or commercial owners.

Jacks said the office plans to publish a parcel-level calculator in September so residents can see the amendment’s impact on their specific parcels and the taxing authorities that service them.

The board voted to receive and file the presentation and asked staff for follow-up briefings and further data for municipalities and special districts. No formal policy or budget decisions were made at the meeting; commissioners said further actions will depend on the courts’ rulings on pending legal challenges and any final ballot language from Tallahassee.

The board will revisit the numbers and potential policy responses in subsequent budget workshops and public sessions as the November election approaches.