St. Pete leaders watching proposed property tax changes as lawmakers prepare for Tallahassee session

Local leaders watch property tax proposals

It's almost time for lawmakers to head back to Tallahassee, and when they do, plenty of cities have priorities they'd like to see addressed. One bill local leaders are paying attention to is property tax reform. FOX 13's Genevieve Curtis reports. 

ST. PETERSBURG, Fla. - As Florida lawmakers prepare to head back to Tallahassee, cities, such as St Petersburg, are sharpening their legislative wish lists. 

What we know:

Some St. Petersburg city leaders say affordability, particularly housing, remains front and center heading into the legislative session.

"We always put forward proposals or wish list items around affordable housing. And I think that's at the top of people's minds," said City Council member Richie Floyd.

Affordable housing initiatives are among the city’s official legislative priorities, but it’s another issue drawing significant attention at City Hall.

Property tax elimination raises red flags

Several bills filed in Tallahassee would eliminate or significantly reduce property taxes. Supporters argue the change could lower the cost of living and make homeownership more attainable.

City leaders, however, warn that the loss of property tax revenue could directly affect the services residents rely on.

"So, it will put strain on the city, which could put strain on people's own pocketbooks," Floyd said.

Dig deeper:

In a letter to constituents, City Council Rep. Lisset Hanewicz highlighted how dependent public safety funding is on property taxes.

According to the city:

• 97.5% of property taxes collected fund police and fire services
• That revenue currently covers 91.6% of St. Petersburg’s total public safety costs.

"When we need our first responders, we need them — period," Hanewicz wrote.

Because of those concerns, all members of city council agreed to begin stress-testing the budget to identify what could be cut if property tax revenues decline.

Lawmakers have already filed eight bills related to property tax reform. While the proposals include provisions preventing cuts to police departments, they do not extend the same protections to fire departments or other emergency services.

"I personally am not interested in lowering the amount of money we spend on the fire rescue department," one city leader said. "But I'm not interested in lowering the amount of money we spend on our parks and rec department or our libraries either."  Millions in potential losses.

The mayor’s office estimates the financial impact could be substantial:

• Eliminating all property taxes would result in a $228.8 million loss in revenue.
• Eliminating taxes on homesteaded properties only would still cost the city an estimated $82 million.

City leaders stress those dollars are already being used.

"There’s not just waste and fraud that we can just cut," one official said. "We’re using these tax dollars to benefit our community every day."

What's next:

Any constitutional amendment eliminating property taxes would require approval from 60% of voters on the November ballot.

Several city council members say St. Petersburg needs a clear plan to educate residents on what services could be lost if such a measure passes.

For now, city leaders say they’ll continue monitoring legislation as the session begins and prepare for tough conversations about what the city can afford to lose.