The proposed property tax amendment could cost the City of Hollywood more than $43 million in the first two years, deputy city manager Adam Reichbach told the city commission this month.
Why it matters: Property taxes account for nearly half of the city’s general fund, so residents could lose some services and programs.
Between the lines: The measure backed by Gov. Ron DeSantis raises the state’s $50,000 homestead exemption to $250,000 by 2028, leaving cities across the state with a significant budget shortfall.
- The amendment prevents local governments from offsetting the losses by raising taxes on businesses, limiting the yearly increases of taxable value on non-residential property.
- It also limits local governments’ use of property tax revenue to a handful of categories: public safety, education, infrastructure, natural resource projects, debt obligations, employee retirement and government operations.
Threat level: Hollywood’s lost tax revenue could impact public works, code enforcement, parks, special events and community centers.
- “We don’t charge park entrance fees, so that may be something we have to look at moving forward,” Reichbach says.
Zoom out: Broward County is expected to lose $250 million, more than 10% of the county’s general fund, in the first year, and more than $452 million the following year.
The big picture: Reichbach, who is also president of the Broward City Managers’ Association, calls property taxes the “most tangible form of taxation” in this country.
- “From the minute you walk outside your house, the roadways you drive on, the sidewalks you walk on, the parks you play at, the emergency vehicles that keep you safe, that’s a tangible benefit you’re getting directly from property taxes,” he adds.