Could property tax relief shift more power to Tallahassee? Some Southwest Florida leaders say yes

SOUTHWEST FLORIDA, (WINK) — Florida voters could soon decide whether to dramatically expand the state's homestead exemption.

Supporters say the proposal would provide long-awaited relief for homeowners facing rising property values and tax bills.

But some local leaders in Southwest Florida say the debate isn't just about taxes.

They worry that if cities and counties lose too much property tax revenue, they could become increasingly dependent on Tallahassee for funding, giving the state more influence over decisions traditionally made at the local level.

Fort Myers Mayor Kevin Anderson said the proposed $250,000 homestead exemption would reduce the city's property tax revenue by about $18 million.

"The 25-26 budget year is based on a little over $86 million worth of property taxes. That $250,000 homestead exemption will reduce that number by about $18 million," Anderson said.

He said local governments could be forced to make difficult choices about services residents rely on.

"Where do we cut, you know, can we cut garbage? You know, that's a hard thing. Do we raise the garbage fees? Do we raise the utility fees? What, you know, the dollars have to come from somewhere," Anderson said.

For Anderson, the concern goes beyond balancing a budget.

"They're taking away our ability to provide the service that the people want, not only want but deserve," he said.

UCF political scientist Aubrey Jewett said one possible outcome is that local governments could find themselves competing for state dollars if they can no longer raise enough revenue on their own.

"We don't know if it would sort of be like a Hunger Games competition, right, where all the counties and cities are sort of jockeying for this limited pot of money," Jewett said.

Jewett said the shift could also move some decision-making away from local communities.

"Rather than local people in different counties and cities in Florida making those decisions and electing city council people or county commissioners to make those decisions, it's actually going to be often decisions are going to be made in Tallahassee," he said.

Punta Gorda City Councilman Greg Julian said local leaders are often closest to the problems they are trying to solve. If cities and counties have to seek help from the state, he believes they could lose some control over local priorities.

"That would likely result in their reviewing our budget to determine whether or not we're spending our money wisely or not, and whether we truly need the help," Julian said.

Julian pointed to a recent funding request as an example.

Punta Gorda sought $2 million to help replace thousands of failed water meters damaged in Hurricane Ian. 

"We asked our state representative for appropriation of $2 million, and it got approved for $1 million," Julian said.

He also said some hurricane-related projects remain unresolved years after the storm.

"We've been waiting on resolution of these projects since Ian," he said.

Resident Barry Lucas said he worries those types of decisions could become more common if local governments are forced to look elsewhere for funding.

"They want to control the government," he said.

Supporters of the proposal, like Governor Ron DeSantis, argue homeowners deserve relief after years of rising property values and tax bills, and say local governments are wasting taxpayer money.