Overview
- Eliminating homestead non-school property taxes would reduce ad valorem revenue by about 38% and overall general fund revenue by about 14%, with millage rates needing to nearly double to maintain services.
- High fixed-dollar exemptions between $250,000 and $500,000 would still cut ad valorem revenue by roughly 25% to 32%, forcing significant rate increases on remaining taxable properties.
- Rural and smaller inland municipalities would bear the largest fiscal stress due to narrow tax bases and fewer alternatives, with the study warning of likely service cuts and potential hits to bond ratings and capital projects without replacement revenue.
- Property taxes account for about 43% of municipal general fund revenue statewide, while public safety consumes more than 56% of those budgets, leaving cities vulnerable to structural gaps from even modest losses.
- Four of eight House constitutional proposals cleared a key committee, including HJR 201 to eliminate non-school homestead taxes, HJR 205 to extend that to seniors, HJR 209 for a $100,000 insurance-tied exemption, and HJR 211 to expand Save Our Homes portability.