Haines City officials say a proposed state constitutional amendment expanding homestead property tax exemptions could cost the city $10 million a year in general fund revenue once fully phased in by 2028.
The city held a town hall meeting for residents ahead of the November general election, with officials saying the goal was to explain potential impacts rather than urge voters for or against the measure. Attendees heard from the city’s finance director, as well as Polk County’s tax collector and property appraiser.
A representative from the tax collector’s office presented figures showing that owners of some homesteaded properties could save thousands of dollars if the amendment passes. City officials said the potential $10 million loss would represent more than a third of Haines City’s ad valorem revenue for the current fiscal year.
Mayor Vernel Smith said city leaders are still working through how to address the possible revenue shortfall. “It makes us have to be a little bit more apprehensive, a lot more strategic with making sure that we can continue projects that are already started and making sure that none of our citizens feel the burden of losing those funds,” Smith said.
Polk County Property Appraiser Neil Combee said cities and counties statewide could face similar challenges if the amendment passes, noting that local governments looking to recover lost revenue would likely turn to non-ad valorem assessments or higher millage rates.
According to the city’s finance director, public safety accounts for about 41% of Haines City’s current general fund spending, and Smith said city leaders do not want to cut police or fire department budgets. Property tax revenue also funds services such as park maintenance and road improvements. While no specific cuts have been decided, Smith said the interim city manager and city departments have been asked to review planned projects to determine what can move forward and what may need to be delayed.
Voters will decide on the amendment in the November general election, where it will need at least 60% approval to pass.
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