County receives briefing on proposed state property‑tax amendment; board plans workshop if amendment passes

Hillsborough County finance staff on June 17 briefed commissioners on proposed state property‑tax reform the legislature placed on the November 2026 ballot. The package would raise the homestead exemption (phased to $150,000 in FY28 and $250,000 in FY29), lower non‑homestead assessment caps from 10% to 5%, and change maximum millage calculations so simple majority votes are limited to the rollback rate, with supermajority thresholds to raise rates beyond that.

Tom Fessler, the county's chief financial administrator, said the county estimates a significant fall in ad valorem revenue if the measures take effect as written: an estimated $213 million impact on the countywide general fund and large impacts to unincorporated fund revenues. He said those losses would largely affect budgets for constitutional officers, the sheriff and fire rescue, which together account for the majority of current general fund spending. Staff outlined mitigation ideas — ranging from targeted program reductions and using reserves, to special assessments (such as fire districts), expanded fees, or seeking new revenue sources — and recommended the board adopt guiding principles for adjustments if the amendment passes.

Commissioners asked that a workshop be scheduled early in the next calendar year to prepare for budget decisions should voters approve the amendment. The board voted to receive the report and directed staff to schedule a January or February workshop to plan for potential budget impacts.