St. Petersburg officials are preparing for a potential financial problem that could arise if Amendment 3 passes in November. The amendment would expand Florida’s homestead exemption, allowing homeowners to exempt more of their home’s value from property taxes. This could result in a lower tax bill for many homeowners, but it could also mean that the city of St. Petersburg collects millions less in property tax revenue.
Impact on City Services
The city’s property tax revenue currently funds much of its day-to-day operations, including police and fire services. According to a recent budget presentation, nearly all of the city’s property tax revenue already goes toward these services, with roughly $174 million supporting the police department and another $29 million helping to fund Fire Rescue.
Council Chair Lisset Hanewicz stated that the discussion reflected the reality that property taxes currently pay for much of the city’s police and fire services, leaving officials with difficult choices if that revenue declines. Hanewicz said, ‘So what we’re going to be losing, obviously, is having the ability to cover our cost for police and fire. We have to figure out how we are going to manage that.’
Preparing for the Future
To prepare for the potential loss of revenue, city administrators are planning to hire a consultant to develop a fire assessment, which is a separate charge used to help fund fire protection. This assessment is based on the benefit that fire service provides to a property, rather than the property’s taxable value.
Christopher Roe, an attorney specializing in local government finance, noted that Florida courts have consistently upheld fire assessments because fire protection provides a direct benefit to property. Hanewicz emphasized that no one is asking the council to adopt a fire assessment at this time, but rather to begin developing the methodology for a fire assessment, a process that takes months and must begin well before any assessment could appear on a tax bill.
Original reporting: St. Pete Catalyst — read the source article.
