Now that proposed revisions to Florida’s homestead exemption are going before voters, local officials and institutions are warning those changes could hamper financing for local projects.
Several municipal leaders, including some county tax collectors and property appraisers, are concerned that if the referendum is approved the reduction in revenues could complicate the repayment of municipal bonds.
The concerns about the future of the stability of municipal bonds in Florida are getting so intense, daily trade newspaper The Bond Buyer has increased coverage the Sunshine State situation.
A June 5 Bond Buyer report tapped Pasco County Tax Collector Mike Fasano who said the homestead proposal could cause problems for outstanding bonds in that county.
“I am quite concerned about those bonds,” Fasano said in the report.
In Lee County, Property Appraiser Matt Caldwell suggested the loss of tax revenue due to the homestead revisions could cause pain if implemented too quickly.
“I think it would make a lot more sense to phase it in over, say, the next decade,” Caldwell said in a Gulf Coast News report.
The Florida Legislature voted last week to take the measure to the voters in a referendum on the Nov. 3 General Election ballot. If approved by at least 60% of voters, the constitutional amendment would raise homestead exemptions for those who own primary residences in the state by the end of this year to $150,000 in 2027 and $250,000 in 2028, and tie further increases in the exemption to the Consumer Price Index.
While many lawmakers and Gov. Ron DeSantis are behind it, organizations such as Florida TaxWatch and the Florida Policy Institute have expressed hesitation.
Meanwhile, UBS wealth management issued an analysis of the homestead plan and Yahoo Finance reported the institution’s review challenged some of DeSantis’ claims. A central promise was it would eliminate property taxes for 60% of residents who own homes and UBS used the Florida Office of Economic and Demographic Research as a benchmark for its review.
“But the state’s own data tells a more modest story: only about 28% of homesteaded properties in Florida are valued at $250,000 or less. At the $500,000 threshold — again, where DeSantis promised 92% coverage — Florida’s own data pegs the share at just 75% to 80%,” the Yahoo report stated.