Cutler Bay manager warns state tax changes could cut town revenue by millions

Town Manager Ralph Casals told the council that state-level property-tax changes under active litigation and recent legislation could materially reduce town revenues over the next two years. Citing the Florida Revenue Estimating Conference, Casals said an increase in the homestead exemption would affect roughly 10,000 of Cutler Bay's approximately 19,000 properties and could reduce annual revenue by about $2.8 million in 2027; under a larger exemption scenario the reduction could rise to about $5.0 million in 2028.

Casals also reviewed a state bill referenced in his presentation (transcript: "house bill 13 29") that will change municipal posting and reporting requirements, and he said some provisions — including a required 10% budget-cutting exercise and quarterly compensation reports — take effect in January 2027. He noted the town has joined other cities in litigation over parts of the state law and that outside counsel briefed the council on a hearing in Tallahassee; the legal process continues and no final outcome was reported at the workshop.