St. Pete holds property tax rate steady

St. Petersburg homeowners would continue paying the same city property tax rate next fiscal year under a budget proposal approved Thursday, although rising property values are expected to generate nearly $15 million more in tax revenue.

City Council unanimously approved a tentative operating millage rate of 6.4525 mills for Fiscal Year 2027, matching the current year’s rate. A mill equals $1 in taxes for every $1,000 of a property’s taxable value, meaning a homeowner’s tax bill depends on both the millage rate and the assessed value of their property.

Because property values increased across the city, many homeowners could still pay more in city property taxes even though the tax rate itself would remain unchanged.

The proposed rate is higher than Florida’s rollback rate of 6.3854 mills, the rate that would generate roughly the same amount of property tax revenue as the previous year, excluding new construction. Under a new state law approved earlier this year, adopting a rate above the rollback rate required a two-thirds vote of City Council. The measure passed unanimously.

City projections show taxable property values increased to about $39.3 billion this year. As a result, ad valorem, or property tax, revenue is expected to increase from about $228.9 million in Fiscal Year 2026 to $243.7 million in Fiscal Year 2027, an increase of nearly $14.8 million.

Those additional dollars help cover the city’s proposed $437.3 million General Fund budget, which pays for core services such as police, fire rescue, parks, libraries and other day-to-day operations.

During Thursday’s discussion, Council member Corey Givens questioned why the city was not lowering the millage rate now that property values have increased.

Liz Makofske, the city’s budget and management director, responded: “Millage rates are calculated based off needs in the budget.”

After accounting for revenue from sources other than property taxes, including state revenue sharing, fees and other local revenues, the city estimates it will need about $243.7 million in property tax revenue to balance next year’s General Fund budget.

Council Chair Copley Gerdes defended the proposal, saying “this could have gone the other way, really badly … This is a massive job well done.” Meaning, the rate may have faced an increase, causing larger tax bills for homeowners.

The proposal continues a trend of declining city property tax rates over the past decade. St. Petersburg’s operating millage has fallen from 6.77 mills in Fiscal Year 2016 to 6.4525 mills today, where it has remained since Fiscal Year 2025.