What Property Tax Reform Could Mean For The Community

So what would that mean at the local level?

Property taxes are one of the primary sources of funding for municipal services across Florida. In the City of Hollywood, Property Tax Revenue helps fund essential, day-to-day operations such as Police and Fire Rescue Services, Emergency Response and the Maintenance and Improvement of Parks, Roadways, Stormwater Systems, and other critical Infrastructure that residents rely on each day. In the current fiscal year, approximately 46% of the City of Hollywood’s General Fund Revenue comes from Property Taxes.

Public safety represents the largest share of the City’s operating budget. Roughly two-thirds of the general fund is dedicated to public safety services. These services rely heavily on Property Tax Revenue to maintain staffing, equipment, vehicles and training.

Florida voters previously approved the Save Our Homes amendment, which caps annual increases in assessed value for homesteaded properties at 3 percent or the Consumer Price Index, whichever is lower. This provision has helped limit rapid increases in taxable value for full-time homeowners.

If Property Taxes were substantially reduced or eliminated, the revenue that currently supports municipal services would need to be replaced, or service levels would need to be adjusted accordingly. Possible alternatives could include higher sales or other taxes that are directed to state or federal budgets — not governed by your City. Property Tax Reform could also result in new or increased local fees, as well as reductions to programs and services residents have come to expect.

As discussions move forward at the state level, residents are encouraged to stay informed and review official ballot language if amendments are placed before voters. Understanding how cities such as Hollywood are funded provides important context when evaluating potential changes to Florida’s tax structure.

You can find more resources with the Florida League of Cities at: www.flcities.com/floridaformula.