Okaloosa County commissioners back plan to seek state approval for local sales-tax option to cut homestead millage

Okaloosa County commissioners voted unanimously July 14 to push a proposal that would let local voters decide whether to replace general millage on homesteads with a county-level consumption tax.

Chair introduced the idea as a way to shift the county and participating cities’ general millage burden off homeowners and onto a broader consumption base that is partially borne by non‑residents. "A penny of sales tax could replace all the homestead general millage levied by Okaloosa County and our cities," the chair said, asking staff to pursue legislative authorization, stakeholder outreach and additional legal and fiscal study.

Commissioner Cox said the approach could protect services — libraries, animal control and other programs — that would otherwise face cuts under state-level property-tax reforms. "This gives voters a tool to decide what services they want and how to fund them," Cox said. Commissioner Thomas and others urged caution about revenue volatility from a visitor‑driven sales tax and recommended building reserves or smoothing mechanisms; the chair and several commissioners said those operational details should be part of the staff analysis.

The board directed staff to prepare a detailed fiscal and legal analysis, coordinate with cities and the county’s legislative delegation, consult stakeholders including the Florida League of Cities and Florida Association of Counties, and return with draft language and findings. The motion to make the proposal a legislative priority and to proceed with the listed analysis passed unanimously.

Next steps: staff will return to the board with the requested analyses and proposed legislative language; any eventual ballot question would require state statutory authority and local voter approval at a referendum.