Hillsborough County could lose as much as $500 million a year if the property tax referendum passes in November. But the biggest factor could be uncertainty in what services would be cut.
Hillsborough County could see its core services effected. County officials said it could impact everything from public safety to parks and libraries.
A report issued Wednesday by county officials showed a potential hit of $367 million. But Bob Henriquez, the Hillsborough property appraiser, said that could be as high as $500 million if the full property tax cut takes effect.
And that could mean significant reductions in revenues that now go to police and fire/safety, public works, parks and libraries. County commissioners might be asked to consider a county hiring freeze, increased park fees, a five-cent added fuel tax, reduced operating hours or special taxing districts for fire and parks.
Some services might be eliminated, and the non-homestead property tax that remains might be increased. Currently, 88 percent of property taxes go to the sheriff's office, fire/rescue and constitutional offices, such as the elections supervisor and tax collector.
Libraries could lose $21 million a year if the homestead exemption increases to $250,000 per home.
"We could face possible elimination or reduction of various county services that could include parks, aging, children's services," said Tom Fesler, the county's budget director. "The legislation as currently written has some uncertainty as whether we can even fund some of those things with ad valorem (property tax) revenues at this point."
"There would likely be a necessity to consider revenue adjustments and increases in addition to expenditure reductions to be able to continue to provide the core services that we are currently providing," Fesler said.
That could include levying a new 10% public services tax on things like utility bills, which could raise from $80 million to $90 million a year.
"This is something that will completely upend the way that governments are funded in our state." Hillsborough Commissioner Harry Cohen.
Commissioner Harry Cohen said the biggest problem is uncertainty until voters go to the polls.
"It makes it very, very difficult for us to make any decisions about how we move forward in a number of areas, because there's such a drastic difference between what we have now and what might occur after November," he said.
"This is something that will completely upend the way that governments are funded in our state — and at the very minimum cause a lot of confusion and disruption on the way to figuring out how to cope with it," said Cohen.
"This organization has money to cut. You're just going to have to will it into existence." - County Commissioner Joshua Wostal.
But Commissioner Joshua Wostal said it would help younger families buy their first homes, as well as seniors on fixed incomes.
"At the end of the day, you're going to end up with relief that at this point is boxing out first-time home buyers to the age of 40 years old. And also taxing fixed income senior citizens out of their homes in their twilight years, forcing them onto even more government reliance."
"This organization has money to cut," Wostal said referring to Hillsborough County. "You're just going to have to will it into existence."
Cohen countered that fees would have to be raised that could affect lower-income residents, and renters and small business owners could be hit by taxes that would have to be increased to make up the difference.
The referendum will ask voters to increase the homestead tax exemption from the current $50,000 to $150,000 in 2027, and up to $250,000 the following year.
It would have to be passed by at least 60% of the voters to take effect.
