The city of Jacksonville could lose more than $300 million in revenue annually from a property tax reform proposal under consideration by Florida state legislators, according to City Council auditors.
Estimating the impact of Gov. Ron DeSantis’ proposal to increase Florida’s homestead exemption to $250,000 by fiscal year 2029, the auditors told Jacksonville City Council they expect that the city will lose more than 10% of its budget within three years.
DeSantis’ proposal, announced May 27, calls for a constitutional amendment to increase Florida’s homestead exemption, which applies to residential properties and currently exempts $50,000 of property value from being taxed. Titled “Save Our Homes from Excessive Property Taxes,” the measure would increase the exemption to $150,000 in FY28 and $250,000 in FY29.
DeSantis called for a special session beginning June 1 to consider the proposal. If approved, it would go on a statewide ballot in November.
The city’s FY27 budget, which Mayor Donna Deegan is set to introduce in July, would not be affected, as the proposed changes will not be in place during the city’s October-through-September fiscal year.
Under DeSantis’ proposal, the homestead exemption would apply to residents who maintain Florida residency for more than five years.
In a message to City Council members provided to the Daily Record, Council Auditor Phillip Peterson wrote that based on FY25 property assessments, Jacksonville would lose $265 million in revenue from a $250,000 homestead exemption. That’s roughly 12% of the city’s current budget, which is slightly more than $2 billion.
Based on projected FY27 property values, Peterson said the city would lose $300 million from a $250,000 exemption.
According to a May 27 news release, DeSantis’ property tax measure would not allow municipalities to reduce funding for public safety, education and schools, infrastructure and natural resources. The plan also would create a trust fund to provide grants to local governments to maintain core local services, according to the release.
Additionally, Florida municipalities would be barred from increasing local governments’ tax assessments on small business more than 5% year-over-year. Currently, the cap is 10%.
Peterson said that change would result in further lost revenue for the city.
“If the proposal is approved during next week’s special session, we will conduct a deeper analysis to provide Council with more detailed information,” he said.
The Florida Association of Counties also published estimates of how much tax revenue each Florida county could expect to lose under DeSantis’ proposal. According to those estimates, the effects in FY28 for the counties surrounding Duval would be:
• Baker County: $2.58 million, or 22.77% of its revenue.
• Clay County: $35.89 million, or 21.49% of its revenue.
• Nassau County: $20.25 million, or 12.03% of its revenue.
• St. Johns County: $54.95 million, or 12.05% of its revenue.
For FY29, the effects would be:
• Baker County: $3.86 million, or 32.13% of its revenue.
• Clay County: $57.76 million, or 33.23% of its revenue.
• Nassau County: $35.56 million, or 19.47% of its revenue.
• St Johns: $102.59 million, or 20.71% of its revenue.
“Property tax revenue collected by local governments has nearly doubled in the past seven years and is expected to reach an astounding $83 billion by 2032,” DeSantis said in the release. “Florida homeowners need relief. Now is the time to stand up for taxpayers, enact a historic reform, and save the home of every Floridian.”
In a May 29 note urging lawmakers to vote against the amendment, the Florida Association of Counties said that despite the prohibition on reducing public safety budgets, the measure could weaken police and fire protection.
“Under this amendment, public safety budgets could be frozen at 2026 funding levels or even reduced as Florida’s population and calls for service climb. There would be no mass layoffs, just fewer new deputies, slower replacement of squad cars and longer response times, just like Los Angeles,” the note read.
The city of Jacksonville said in a statement that DeSantis’ proposal would “put public safety in jeopardy.”
“While the latest homestead exemption proposal would have a significant impact on the city’s budget, necessary approvals from the state legislature and voters make it a long way off from becoming reality,” a city spokesperson wrote. “The administration will continue monitoring property tax proposals and analyzing different revenues scenarios as future budgets are prepared. As it stands now, property tax revenue barely covers Jacksonville’s police and fire costs.”
The spokesperson wrote that Jacksonville’s public safety contributions to the Jacksonville Sheriff’s Office and the Jacksonville Fire and Rescue Department totaled $1.03 billion in the FY26 budget. The city’s debt requirements cost another $239.13 million.
The Council Finance Committee is set to discuss the proposal legislation during its June 2 meeting, Peterson wrote.
“The City will be prepared for whatever decision the voters make in November, and we will respond accordingly,” Council President Designate Nick Howland, who is Finance Committee vice chair, wrote in a text. “Taxpayers expect their dollars to be managed responsibly, and that is exactly what fiscally responsible government requires.”
To be adopted, DeSantis’ proposal must get 60% approval in the state Senate and House. It must also win approval from 60% of voters in the November ballot measure.
“The shift moves in one direction. State revenue collected from across Florida would be deposited in state government bank accounts and redistributed to counties that cannot generate enough on their own. Some counties will gain. Others will lose,” the Florida Association of Counties wrote in its note to lawmakers.
“Florida has long protested this exact dynamic in Washington, where our residents send more in federal tax dollars than the state receives back. The same argument applies inside Florida’s borders.”