Thrive
Local leaders express property tax elimination concerns
State Senator Nick DiCeglie recently told city council members, much to their dismay, that the governor is intent on eliminating or significantly reducing property taxes.
Those revenues account for 73% of St. Petersburg’s general fund, and most of that money supports public safety. Governor Ron DeSantis pushed to cut property taxes throughout a chaotic legislative session and recently pitched a plan to offer $1,000 rebates for each homesteaded property.
While DeSantis said the lawmakers could approve the latter proposal this year, eliminating property taxes altogether would require a ballot referendum in November 2026. St. Petersburg officials discussed the potential impacts during a July 27 legislative committee meeting and a budget presentation later that day.
“It’s clear to me, and should be clear to all of you here, that the governor is pretty focused on having a (property tax) question on the ballot,” DiCeglie said. “But I share the same concerns.”
The Florida Policy Institute reports that property taxes generate $55 billion annually. The non-partisan think tank estimates that sales taxes may need to double, from 6% to 12%, to compensate for the loss in funding.
St. Petersburg has $228.9 million in ad valorem revenue to fund a $411.76 million operating budget in fiscal year 2026. Assistant City Administrator Tom Greene said 95.6% of that money “pays for our police and fire departments.”
Councilmember Lisset Hanewicz called the potential shortfall a “big concern” for city officials, as residents expect a “level of service” from their local government. “The money is going to things that we really need,” she said.
If approved, Florida would become the first state with no income or property taxes. In addition to eliminating the critical funding source, lawmakers are considering a $500,000 homestead exemption, capped at $1 million for seniors, and a 15% cap on assessment increases.
“Property taxes effectively require homeowners to pay rent to the government,” DeSantis said in a prepared statement. He pitched the homestead exemption proposal in March and subsequently vetoed a study to evaluate how local governments use the revenue and the impacts of a reduction.
“There’s no way the state is going to be giving tens or hundreds of millions of dollars directly to cities and counties to make up that difference,” Rep. Lindsay Cross said Thursday.
From left: Sen. Nick DiCeglie, Sen. Darryl Rouson, Rep. Lindsay Cross and Rep. Michele Rayner. Photo: St. Petersburg Area Chamber of Commerce.
DiCeglie said the governor is “brushing off” the roughly $300 million potential shortfall for rural areas. He stressed the importance of letting the local delegation know those “large numbers” in a city like St. Petersburg that will resonate “when we try to balance a budget.”
While $300 million will not “break the budget,” DiCeglie, a Republican, believes that each city losing hundreds of millions of dollars should put “a lot of our colleagues at the end of their seats.”
“I don’t support a complete elimination of property tax,” DiCeglie said. “I’m not interested in handicapping local governments and their ability to provide services that we all expect, as we should.”
Rep. Michelle Rayner is one of 37 lawmakers on a House Select Committee created to study property tax reform. DeSantis bemoaned the bipartisan group in May at a press conference in Tampa before vetoing $1 million for the initiative.
“You convene a 37-person committee if you’re trying to smother it in the crib,” he said. “They’re trying to kill any chance of property tax relief by doing this committee.”
Cross, a Democrat, said the committee will continue meeting throughout the summer. She does not believe there is much of an “appetite to hear from our major metropolitan cities about their property tax flows.”
Councilmember Deborah Figgs-Sanders noted that schools receive 33% of Pinellas County property taxes. The district is currently scrambling to overcome the loss of $10.7 million in federal and state funding.
Opponents believe eliminating ad valorem taxes would disproportionately benefit wealthy property owners while negatively impacting the average resident. Raymond James Financial ($130.37 million) topped St. Petersburg’s taxpayer rankings in 2024; downtown developments occupied second through eighth place.
In May, economic and workforce development director Brian Caper said those developments “generate significantly higher tax revenue per acre and greatly contribute to the city’s ability to fund new projects and programs throughout St. Petersburg.” For example, the Ascent condominiums paid $100.4 million per acre, compared to just $4.6 million for Raymond James.
David Thompson, director of government affairs for the city, reiterated Thursday that the governor is “very keen on eliminating property taxes, at least for homesteaded properties.” DiCeglie called it a “huge topic of conversation,” and said the “devil is in the details.”
“I think as we get to committee weeks, maybe we’ll have a better idea,” he added. “But we’ll see how it all plays out.”
Ryan Todd
July 23, 2025at2:58 pm
Replace the fed spending with nothing. Elected officials are drunk on Uncle Sugar’s dime taking no responsibility for their policy decisions while waiting for a handout from the Feds. It’s not the nation’s fault that St. Pete increased density in the high-hazard overlay. Time to act responsibly with our money, city council.
John Avery
July 22, 2025at9:23 pm
Eliminate property taxes and replace it with WHAT? There are only 100 pennies in the dollar no mater how we wish otherwise.
joseph boone
July 22, 2025at8:29 pm
How exactly do you plan to eliminate that and still have a safe, functioning city? You can’t run a major city or county in Florida without property taxes. And then they’re also eliminating the FEMA aid that’s supposed to help us rebuild after the hurricane hits. They’re taking away our ability to handle these disasters at all.
Leilani Keaka
July 22, 2025at7:43 pm
What IS this? 55 billion gone from the state budget while D.C. slashes critical federal programs that protect the most vulnerable? Seems legit. Looks like our keepers are in the mood to burn it all down. 🫤
Mike Kosempa
July 22, 2025at6:58 pm
Jeff subsidizing housing lotteries is not a “service”. You want 10 million dollars for other peoples kids to go to school? No problem. Stop subsidizing the adults housing. The problem isnt funding. The problem is perverse upside down priorities fueling perverse upside down incentives.
There isnt enough money on this planet to realize our city governments fever dreams of buying their special interest group’s way to prosperity. It doesnt work that way.
Alyssa Haley
July 22, 2025at3:39 pm
As a mom, that trade-off just doesn’t sit right with me. It could mean fewer resources for schools, public safety, and storm prep…
Hugh Hazeltine
July 22, 2025at9:57 am
It is good to see Brian Caper talk about Tax revenue per acre. That is a good way to measure and compare.
Ryan Todd
July 21, 2025at4:56 pm
I’m ecstatic that our property taxes are going to be eliminated. Taxes on the house I bought for my mother are killing me.
Lisset mentioned that St Pete residents are “…accustomed to a level of service…”, but I have to push back on that. We pay exorbitant taxes in St. Pete and get next to nothing in the way of essential service delivery – neighborhood streets are a mess with potholes.
Jeff Jarr
July 21, 2025at4:04 pm
The need for local services does not go away, if property taxes are eliminated…all that happens is ANOTHER tax goes up.
I am all for tight-fisted government, but that’s different than canceling a source of revenue…without understanding the impact of raising the money elsewhere.