Revenue anxiety

Tax break ballot item worries city officials

Florida’s proposed property tax break of $25,000, which will go before voters next year, has local bodies worried about the potential loss of revenue.

If voters approve the additional homestead exemption of $25,000, cities will lose millions in revenue, affecting their ability to provide services to the community. The issue came up for discussion at two recent meetings, one in Coral Springs and the other in Coconut Creek.

Coral Springs Vice Mayor Dan Daley, who is the president of the Broward League of Cities, said he could not recall a legislative session in recent times that was as challenging to local bodies as the recentone was. If the voters approve the additional homestead exemption, itwould mean a nearly $3 million loss of property tax revenue for the city, he added.

“Given the climate in Florida for municipalities, it is only going to get harder,” said Daley. “New homestead exemptions, new restrictions, new clawbacks, new attacks on home rule; this is what we deal with on an annual basis from the legislature.”

Staff and officials in many local bodies seem almost resigned to the fact that the proposal has a very good chance of being approved by voters.

“We believe it will pass because it is a very popular thing, but we don’t know if it is a positive thing. It shifts the lax burden to others “said Karen Brooks, Coconut Creek assistant city manager and finance director.

The city will lose more than $1 million in property tax revenue if voters approve the proposal, Brooks said. “We are probably going to be dealing with it. It well impede our future ability to fund services.”

asivasankaran@ sun-sentinel.com