St. Pete tentatively keeps millage steady; property tax debate grows

St. Petersburg City Council approved a 6.4525 mill property tax rate Thursday, keeping it unchanged for another year as property taxes impact Florida’s affordability and the cost of city government.

Council had it’s first vote to approve the rate 6 to 2, Sept. 3, with Councilmembers Corey Givens and Gina Driscoll voting no. One mill equals $1 for every $1,000 of taxable property value.

An unchanged rate does not necessarily mean an unchanged bill. Rising taxable values can generate additional revenue for the city without an increase in millage, a distinction property owners recently saw on their annual Truth in Millage notices.

The city also controls only a portion of what appears on those bills. About 30% of a typical St. Petersburg resident’s property taxes go to the city. Pinellas County Schools receive about 36%, while Pinellas County government receives 22%. The remaining 12% goes to taxing authorities including EMS, the Juvenile Welfare Board and Pinellas Suncoast Transit Authority.

St. Petersburg’s portion largely pays for public safety. City fiscal policy directs property tax revenue to required tax increment financing transfers, then to the Police Department and Fire Rescue.

Of $228.876 million in property tax revenue for fiscal year 2026, $173.666 million went to police and $28.702 million went to fire. Another $26.508 million went to required tax increment financing transfers for Community Redevelopment Areas. Other city revenue covers the remainder of Fire Rescue’s budget.

The city’s mayoral candidates, Ken Welch and Charlie Crist, debate whether St. Petersburg should collect less in property taxes.

Former Gov. Crist has proposed cutting the city’s operating millage by 0.4 mills, which his campaign estimates would reduce collections by roughly $14.8 million annually. Crist has called the proposal “real money” and “real relief” while maintaining that police, fire, affordable housing, storm recovery, parks, libraries and after-school programs could remain fully funded.

Mayor Welch has argued that giving up the revenue would affect services. Speaking at a July forum hosted by the St. Petersburg Arts Alliance, Welch said, “You need to understand that when someone is talking about cutting property taxes, the first thing that will be cut will be the arts, so when someone talks to you about cutting property taxes, ask them specifically what they will cut.”

At the current rate, a property with $300,000 in taxable value would generate about $1,936 in city property taxes. A 0.4 mill reduction would save the owner about $120 annually. On $500,000 of taxable value, the difference would be $200.

Council recently approved increases for water, wastewater, reclaimed water, stormwater and sanitation, costs that reach homeowners and renters alike.

Councilmember Richie Floyd has argued that those expenses should be considered alongside property taxes rather than separately.

“I want us to look at property tax and utility rates as one big bill from the city,” Floyd previously told the Catalyst.

Floyd has suggested reducing transfers from utility funds to the General Fund and relying more heavily on property tax revenue to make up the difference. The approach would theoretically shift some burden from utility customers, including renters, toward property owners, especially non-homesteaders.

Property taxes are a major, but not the only, source of operating revenue for the city. Fiscal year 2024 to 2025 data show taxes of all kinds generated $257.59 million, or 49% of General Fund revenue. Transfers provided another $69.01 million, with grants, public service taxes, intergovernmental revenue, service charges and other sources making up the balance.

The final vote on millage will be Sept. 17.