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Belleair Beach council unanimously opts out of 'missing middle' property‑tax exemption under HB 7073
Summary
The council adopted Resolution 2025‑11 to opt the city out of providing the 80–120% AMI 'missing middle' property tax exemption created by House Bill 7073; attorney said the measure preserves local tax revenues and must be adopted before Jan. 1 to take effect.
Belleair Beach adopted Resolution 2025‑11 to opt out of the "missing middle" property tax exemption created by House Bill 7073. The exemption allows certain multifamily developments that include units serving households at 80–120% of area median income (AMI) to receive a 75% property‑tax exemption, with a 100% exemption for units at under 80% AMI; state law gives taxing authorities the option to opt out.
City Attorney Tom Tras reviewed the statutory background and said the city meets the legal requirements to opt out; he recommended adopting the resolution to preserve local tax revenue that otherwise might be exempted. The attorney said, in part, that the measure must be adopted before Jan. 1 to take effect and noted few jurisdictions with sufficient land would qualify for the exemption.
The council adopted the resolution unanimously by roll call vote. City staff said the opt‑out will be effective for one year. The resolution was presented as a fiscal safeguard rather than an immediate land‑use change; the city attorney framed it as preserving local budget options in the event a qualifying development came forward.
What’s next: The opt‑out takes effect Jan. 1 and will be reviewed at least annually; staff will place the item on the October calendar in future years to revisit the city’s position.
