A Pinellas County Commissioner says if Florida's property tax referendum passes in November, it could mean fewer working families will be able to afford to move to the area.
Commissioner Kathleen Peters claims passage of the referendum won't lower housing prices. Instead, it would effectively raise other fees for services that working families are more likely to use than seniors.
And she said new families won't be able to afford to buy homes here, while retirees can sell their homes in higher-priced states and move to Florida.
"What I see is who's going to come to Florida as a result of this policy? And it's not going to be the young families, because they still can't afford to buy the houses, at least in my county," she said during a joint meeting of three county commissions last Friday.
"So who's going to come? I believe it's going to be the seniors that are going to come, because they're going to want to retire in Florida, where they don't pay property tax, they don't pay income tax, and they don't pay inheritance tax," she said. "So what I see as an unintended consequence is that the median age in Pinellas County will go from 50 to 70 in probably 10 years."
Peters said that would reduce the number of employees companies need to move to the area.
"My thought is we have a real chance of losing our workforce, and that has a huge impact statewide."- Pinellas County Commissioner Kathleen Peters
"My thought is we have a real chance of losing our workforce, and that has a huge impact statewide," she said.
Opponents of the referendum have said that by reducing property taxes, local governments would have to increase sales taxes and fees on other essential services — including hospital districts, children's services, parks and libraries. While supporters believe it could help alleviate affordability crises for some Floridians.
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Several other Pinellas commissioners echoed Peters' concerns about the upcoming referendum.
"This is an unbridled power grab like I've never seen in my entire life."Pinellas County Commissioner Brian Scott
"This isn't just a tax restructuring, it's a power shift. Local government's really losing its authority," Commissioner Brian Scott said. "This is an unbridled power grab like I've never seen in my entire life. I don't know why they didn't just take all of us out at the same time. Why do you need us anymore? What's the point of local government if you're just a ward of the state and you just have to go to Tallahassee to ask for permission to do anything?"
Pinellas Commissioner Dave Eggers also had a message to state lawmakers after they approved the referendum after about 24 hours of debate.
"We do need to be thinking about that, just to make sure that we're continue sending that message that just says, look, in all of the conversations you're having up there, please keep these things in mind," he said. "You know, there is some value to being the government closest to the people, and we'd like you to hear from us a little bit more."
The ballot amendment raises Florida's current $50,000 threshold for taxing primary residences, or homestead properties, to $150,000 in 2027 and to $250,000 in 2028. This would erase property taxes on primary homes assessed at these values or less.
The measure says the Legislature "shall" create a schedule to continue raising the exemption in subsequent years, but that's optional.
The amendment also includes changes for second homes, businesses and other non-homestead properties, reducing their annual property tax increase cap from 10% to 5%.
