The Florida Legislature approved Gov. Ron DeSantis’ property tax cut plan on Tuesday, June 2. The proposal needed approval from 60% of both chambers. It passed 30-9 in the Senate and 75-26 in the House.
But even before lawmakers gathered in Tallahassee for the special session on property taxes, Lakeland commissioners were already grappling with a question that could affect nearly every major spending decision the city makes over the next few years:
What happens if $14.5 million in annual revenue disappears?
Supporters say the change would provide relief to homeowners. City officials across Florida are warning it could create major holes in local budgets.
What’s at stake
Lakeland stands to lose about 23% of its property tax revenue, but it would not affect every part of the city’s budget equally.
The current budget totals about $815 million. The city’s General Fund — which pays for services such as police and fire protection, parks, libraries, planning and zoning, code enforcement, and general government operations — accounts for roughly $180 million of that total.
Property taxes generate about $62 million of the General Fund’s annual revenue.
If homesteaded properties become exempt from taxation, Finance Director Mike Brossart estimates Lakeland could lose about $14.5 million — roughly 8% of the General Fund that supports many of the city’s core services.
Other parts of the city’s budget — including Lakeland Electric, water and wastewater utilities, solid waste collection, airport operations, and parking facilities — are largely supported by user fees and would not be directly affected.
Already impacting discussions
As lawmakers debated property taxes, Lakeland’s City Commission discussed an $8.33 million purchase of replacement fleet vehicles.
In light of the potential loss of taxes on homesteaded properties, Commissioner Stephanie Madden asked, “Is this something prudent we should do before we know whether or not we’re going to lose those dollars?”
Brossart said Lakeland Electric and solid waste vehicles are paid for through utility rates rather than property taxes — but Madden’s question galvanized the issue.
Commissioner Mike Musick asked city staff to schedule a workshop so commissioners can prepare now for the possibility of a major revenue loss.
“If we get that much money pulled out from our budget, that’s a big deal,” Musick said during the May 29 agenda study session last Friday. “Sooner than later, I’d like for us to arrange something.”
On the ballot in November
The proposal will require support from at least 60% of Florida voters this fall, but many already believe it will pass.
“Eighty percent of all Floridians — Republicans and Democrats — are for cutting property taxes,” Polk County Republican Party Chairman Sam Romain said during Monday’s commission meeting.
Romain urged commissioners to focus on how they would replace the lost revenue if voters approve the measure.
“That’s the decision you’re making, is what you’re going to do with $14.5 million less dollars,” he said.
The plan on the November ballot would raise the current $50,000 homestead exemption to $150,000 in January 2027 and $250,000 in January 2028, eliminating property taxes for roughly 60% of Florida homeowners.
It excludes school district property tax levies.
Beginning in January 2027, first-time homeowners would have to prove five years of residency to qualify for the new exemption.
During negotiations, lawmakers did away with a fund meant to assist rural cities and counties facing revenue loss.
They also lowered the 10% cap to 5% on annual assessment increases for non-homestead properties like vacation homes, investment and commercial properties, and apartments.
Desantis revealed a new calculator to determine home property tax savings on Saturday, May 31.
Time to prepare
On Monday, Brossart told LkldNow in a phone interview that it was difficult to model the impact while the plan was in a state of flux. But he said he would make sure commissioners had a full picture before they begin their budget discussions over the summer.
City Manager Shawn Sherrouse said the city will likely have at least one year to prepare.
“All proposals that we’ve seen would phase in and would not impact our upcoming budget,” Sherrouse said.
The City Commission will begin crafting its 2026-2027 budget this summer. That budget will take effect Oct. 1, a month before voters would weigh in on a constitutional amendment.
Cindy Glover is a reporter for LkldNow, a nonprofit newsroom providing independent local news for Lakeland. Read at LkldNow.com.
