Monroe County stands to lose an estimated $27.2 million in revenue by fiscal year 2028-29, if the question of cutting property taxes is approved by voters this November.
If enough Florida voters support the measure, primary homeowners would keep more money in their wallets with an increasing homestead exemption that would reach $250,000 by 2028, be adjusted to inflation in 2029 and eventually reach full exemption.
Earlier this month, Florida legislators in the House and Senate approved a joint resolution to ask voters whether they support phasing out — and eventually eliminating — property taxes on primary residences. School districts across the state are exempted and will be able to collect taxes on homesteaded properties. But counties, cities and special districts, like mosquito control, are bracing for potentially less revenue as soon as next year’s budget cycle if Florida voters say “yes” later this fall.
In order for the phaseout and elimination to take effect, 60% of votes cast across the state would have to support the measure. From there, the Legislature would have to approve a bill to implement the homestead exemption increase. Legislators in the House and Senate would also need to provide a schedule to fully eliminate property taxes for primary residences.
In addition to raising the exemption on homesteads, from the current $50,000 to $150,000 in 2027 and $250,000 in 2028, the joint resolution caps annual assessment increases on nonhomesteaded properties, such as commercial properties, secondary homes and vacation rentals, from 10% to 5%. John Quinn, county finance director, said two-thirds of the roughly $27 million in anticipated lost revenue to the county by 2028 would come from the adjusted annual assessment cap on nonhomesteaded properties.
Coming off reductions in staff and services last year, Monroe County officials reignited discussions on more cost-cutting measures amid the potential revenue loss at a June 10 meeting in Key Largo. County Administrator Christine Hurley presented commissioners with various options, including reductions to the fiscal year 2028 budget for departments, constitutional offices and services that are funded with property tax dollars. Hurley said an analysis would be created to proportion out, based on use of ad valorem, how much each agency or department would need to eliminate from their budget.
Constitutional officers, which include the offices of the state attorney, public defender, tax collector, clerk of the court, property appraiser, as well as the judicial court system and public safety account for 90.2% of the total county property tax levy, Quinn said. The remaining funds go toward county operations.
“You can’t expect to take all that money we’re going to lose from the county’s budget. It has to be distributed evenly,” commissioner Craig Cates said. “We all have to work together to address this.”
Updated fee structures, such as paid parking at public parks, will also be taken into consideration to address the possible loss in ad valorem dollars.
“This is not going to be pretty. None of us are going to enjoy it,” said commissioner David Rice. “I think the public will not like it any more than we do when they see how it will affect their lives. But we’re going to have to do it.”
And as budget talks for fiscal year 2027 begin next month, county commissioners will mull whether employees should get a cost of living adjustment. Cates said he was against giving a raise this coming budget year given the potential loss of ad valorem revenue the following budget cycle.
“That could save somebody’s job in the future,” Cates said.
Commissioners agreed they’d like to see budget proposals showing either no raise or a cost of living adjustment of 2.7%. County officials said increases for fire rescue and sheriff’s deputies are already spelled out via contracts with the respective unions.
Hurley also presented commissioners with options that include consolidating offices to cut down on utility costs and eliminating all internal and citizen committees not required by state or federal law. The county also can increase the sales tax by a penny to help fund fire protection and rescue services. Raising the sales tax would require voter approval. Tina Boan, assistant county administrator, said emergency and fire rescue rely heavily on property tax revenue.
“We have rising personnel, equipment and facility costs, and there’s an increasing demand for emergency services,” she said. “This would diversify our public safety funding sources. … It captures revenue from visitors and tourists.”
Shortening the work week to four days, or 32 hours, from a five-day, 40-hour work week was also floated during the meeting. Hurley called it an “extreme proposal” for the county as it would likely affect every employee’s salary. Commissioner Holly Raschein said only in a dire situation would she consider it, but she doesn’t feel the county is at that point yet. Rice agreed.
“I don’t think we want to throw it out as a possibility, but I’d like to see it as remote … and certainly wouldn’t intend to go that direction unless we’re at the end of the line and desperate.”
