Hillsborough County leaders divided over proposed property tax reform amendment

TAMPA, Fla. - Hillsborough County leaders are preparing to discuss a new report that warns of significant budget challenges if Florida voters approve a proposed property tax reform amendment this November.

The report, scheduled for discussion during Wednesday's Hillsborough County Commission meeting, outlines how an estimated $367 million annual reduction in property tax revenue could affect county operations and services.

Hillsborough County budget warning

The backstory:

Earlier this month, Florida lawmakers approved placing a property tax reform amendment before voters statewide.

The proposal would eventually increase the homestead property tax exemption to $250,000, limit how local governments can spend property tax revenue, and cap annual assessments on non-homestead properties at 5%.

Projected fiscal revenue impact

By the numbers:

According to Hillsborough County's report, the potential loss of revenue could have long-term consequences for county finances. 

The Hillsborough County Administrator’s report compared the possible impact to the effects of the 2008 Great Recession, but said the consequences could be longer lasting.

The report states the county may need to consider significant changes, including new or increased taxes and fees, staff layoffs, wage freezes, and reductions or eliminations of programs and services.

County commissioner sounds alarm

What they're saying:

Democratic Hillsborough County Commissioner Harry Cohen said the findings raise serious concerns. 

"A lot of the details that we're learning are, quite frankly, very troubling," Cohen said, arguing the impact would extend beyond discretionary spending. "This particular proposal has consequences that go, not into the fat of government, but into the meat and into the bone," Cohen stated. 

He warned that services ranging from libraries and children's programs to aging services and pet resources could face cuts.

"You would also be faced with the question of whether or not to raise fees or take away services," Cohen said. "Things like aging services, pet resources, libraries, children's services, all of those things would essentially be on the chopping block. And even if you did get rid of those things, there's no way that public safety would not ultimately be impacted," he added.

Republican leaders push back

The other side:

Republican Commissioner Joshua Wostal disagreed with the county's assessment and urged caution regarding the conclusions. 

"Everybody should just take this report respectfully with a grain of salt," Wostal said, supporting property tax relief.

Wostal believes county leaders are overstating the potential effects of the amendment. 

"This is the robber baron who you're asking: should she keep less money in the bank vault for her to steal? It's the same scenario," Wostal said. "It's going to be high drama, you know, the world's ending. Everybody should be very clear. We'll never compromise public safety."

Meanwhile, Florida Chief Financial Officer Blaise Ingoglia defended efforts to reduce local government spending during a news conference Tuesday.

"It should be obvious by now that local government will not stop growing and will not stop spending recklessly unless acted up on by the taxpayers," Ingoglia said. 

Cohen responded by noting the CFO has not provided a detailed list of specific spending cuts he believes should be made.

Florida voters decide future

What's next:

The Hillsborough County Commission is expected to review and discuss the report during its meeting Wednesday morning. 

Florida voters will ultimately decide the amendment's future during the election this November, where it requires at least 60% voter approval to pass. 

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