The proposed property tax exemption could reduce county’s revenue by $700 million over five years.
St. Johns County officials laid out the potential financial impact of a proposed state constitutional amendment during a Sept. 29 town hall, saying the county could lose more than $700 million in cumulative property tax revenue over five years if voters approve Amendment 3.
The proposed amendment to the state constitution will be on the Nov. 3 statewide ballot and, if approved by 60% of voters, would increase the homestead exemption on residential properties for county, municipal, special district and other nonschool property taxes for qualifying properties.
St. Johns County has said it does not advocate for or against the amendment.
County Administrator Joy Andrews said the county is providing information about the potential financial effects without taking a political position.
“As a board of county commissioners, as the county operation team, we are by state law — we cannot advocate for or we cannot advocate against this Amendment 3,” Andrews said. “So we’re not taking any political position today.”
The potential impact
St. Johns County collects about $426 million in property taxes annually through the county’s general fund, fire district and transportation trust fund, according to Andrews.
She said county estimates based on Florida Office of Economic and Demographic Research projections show a potential $68.3 million property tax revenue reduction in fiscal year 2028, followed by $136.1 million in FY 2029, $152.5 million in FY 2030, $171.2 million in FY 2031 and $191.6 million in FY 2032. That would total more than $700 million over five years.
The first-year reduction would equal about 16% of current property tax revenue, increasing to about 32% in the second year.
Andrews noted property taxes make up only 22% of the county’s total $1.9 billion adopted budget, but Wade Schroeder, the county’s director of the Office of Management and Budget, cautioned against reading that figure as a sign the county has room to absorb the loss elsewhere.
For instance, he said, the county is restricted in how it can spend funds from some revenue resources. Schroeder said utility revenue, solid waste assessments and revenue from services such as the county’s golf course, pier and beach operations cannot simply be redirected to replace property tax revenue.
If approved, Amendment 3 would take effect Jan. 1, 2027, with the $150,000 exemption and 5% nonhomestead assessment cap taking effect that year. The $250,000 exemption would take effect Jan. 1, 2028.
Schroeder said the county ultimately will have to determine how to prioritize services and projects if the amendment passes.
Read the full news article on The Jacksonville Daily Record